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A sense of panic is rising on stock markets as the threat of ‘Trump Tariffs’ and reciprocal action from other major economies grows. But I’m not tempted to run for the hills. Instead, I’m searching for great stocks to buy before next month’s Stocks and Shares ISA deadline.
Any of my £20,000 annual allowance that I don’t use before 5 April is lost, as it can’t be rolled over to the 2025/26 tax year. So it makes sense to at least deposit as much money as I can in my ISA before that date. This is even if I don’t actually buy any shares, trusts, or funds with it.
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I’m not planning to stop building by Stocks and Shares ISA despite current uncertainty. This is because I buy stocks for the long term, and as a consequence volatility like we’re currently seeing doesn’t dampen my investing appetite. In fact, recent market sell-offs leave me with a chance to go hunting for bargains.
Finally, with a broad spectrum of assets to choose from, I can invest in assets that may remain resilient — or perhaps even thrive — if the economic and political landscape worsens.
Here’s one such safe haven on my watchlist today.
Rising in the gloom
Demand for gold-related assets like the iShares Physical Gold ETF (LSE:SGLN) is soaring as financial market tension grows.
According to the World Gold Council (WGC), global bullion-backed exchange-traded funds (ETFs) reported inflows of $9.6bn in February, the strongest level for almost three years. Holdings increased across Europe, Asia, and North America (where inflows were at their greatest since July 2020).
Demand for the yellow metal continues to soar despite its increasing expensiveness. Its latest record high around $2,959 per ounce was printed a fortnight ago. It’s currently up $775 over the last year, and is (in my opinion) set to keep appreciating.
Fears over geopolitical realignment — including the developing landscape around the Ukraine war — look set to continue simmering. The US dollar could also keep tumbling as worries over the impact of President Trump’s policies on the US economy grow.
A weaker dollar makes it more cost effective to buy buck-denominated assets like precious metals. The world’s reserve currency recently dropped to multi-month lows against both sterling and the euro.
A top fund
I’m a fan of ETFs like the iShares one because, unlike buying gold stocks (or a fund of mining shares), ISA investors can gain exposure to gold without the risks associated with digging for precious metals.
The market for gold ETFs can also be more liquid than that for many mining shares, making it easier and more cost effective for investors to buy and sell them.
I like iShares Physical Gold specifically because it’s one of the more popular funds out there, too. And its 0.12% ongoing charge is also one of the lowest in the business.
Of course funds like this aren’t immune to risk. Like gold itself, they are in danger of plummeting if market confidence improves and demand for riskier assets grows.
Yet, on balance, I believe the iShares Physical Gold ETF is worth serious consideration before April’s ISA deadline.
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