AI vs. gold ETFs: Which is the better long-term play?

As Advanced Micro Devices' (AMD) latest deal with OpenAI (OPAI.PVT) stirs up an AI-led rally in markets (^DJI, ^IXIC, ^GSPC), should investors still be hedging their bets?

Envestnet Solutions Co-CIO & Group President Dana D’Auria comes on Opening Bid shares her thoughts on the AI rally and gold ETFs as the precious metal climbs above an astounding $4,000 per ounce benchmark at the time of this video's posting.

To watch more expert insights and analysis on the latest market action, check out more Opening Bid.

Video Transcript

00:00 Speaker A

If you had to make a choice, is it an AI-centric ETF or do you buy a gold ETF here? I mean, these things are absolutely ripping higher.

00:08 Dana

I would go with the AI-centric, but I base that answer on, you know, I'm it's play money. As I said before, it's which one do I want to take a shot on, not, you know, if it if it is, I'm supposed I'm trying to hedge my bets, I'd go with the gold. Although that wouldn't be my first choice for for hedging bets, but, um, if it's play money and which do I think is actually has a better chance of doing well, I'd still go with the AI.

00:27 Speaker A

What do you think about this move in gold?

00:30 Dana

I think it's interesting. I just came back from a trip to our operations in India and and gold was a big discussion there because it's highly valued. We a lot of uh, you know, part of weddings and um people people uh use it obviously not just as an investment, but also they enjoy it. I frankly, I think that's the way to think about gold. Gold doesn't produce anything, right? And I I know it's a terrible time to be saying this, but um, at the end of the day, it's just, you know, kind of a stockpile. So, um it doesn't have the opportunity in the person's portfolio to really kind of win for them. You're sort of just betting on, you know, sentiment as was said and and you're betting on uh the fact that over time people are going to be concerned about currency. And you know, I mean for a long-term bet, I I think it's I'm less interested in, you know, kind of seeing a gold ETF than I am maybe a gold necklace.

01:21 Speaker A

Fair fair enough. Dana, last word for for you about 20 seconds. Are you as an investing pro, do you miss economic data coming in? Or is it now is it really is or is it like freed you up to to look at stocks more on an individual basis? I mean, do we need all this data?

01:35 Dana

Yeah, no, I think we want the data.

01:38 Dana

I I think look, some it's been it a lot of what's gone on this year has created a lot of good conversation around how we capture data, do we need to upgrade? You know, there hasn't been a lot of enhancements that probably do need to take place in the capture of data, but the absence of data is not a good thing. And, you know, people do react to this. I mean, the the only saving grace is if people don't trade as much, right? If they kind of settle down and say, well, I don't know, I'm not going to try to bet on the Fed one way or the other, but I don't think that's going to happen. I think in fact, you know, people will just do it in the absence of the information that they used to have, which I don't think is a a positive thing. I want to see the data come back. Related Videos

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