An Investor's Guide to the Gold Rally

And two ways to play a rally. Just don’t bet the milk money.

(Image credit: man_at_mouse)

After a long downward spiral, gold is showing some luster again. An ounce of the metal now fetches $1,231, up 16% since December. Gold-mining stocks have done better—much better. Year-to-date, VanEck Vectors Gold Miners ETF (symbol GDX, $23.03), an exchange-traded fund that tracks an index of mining stocks, has soared 68%. The rally makes gold one of the best-performing asset classes of 2016, handily beating stocks and bonds. So should you jump aboard the gold train? Although the price could keep climbing, buyers should beware. Here are five things you need to know if you’re thinking of investing.

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Daren Fonda
Senior Associate Editor, Kiplinger's Personal Finance
Daren joined Kiplinger in July 2015 after spending more than 20 years in New York City as a business and financial writer. He spent seven years at Time magazine and joined SmartMoney in 2007, where he wrote about investing and contributed car reviews to the magazine. Daren also worked as a writer in the fund industry for Janus Capital and Fidelity Investments and has been licensed as a Series 7 securities representative.