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Investors hoard most gold in ETFs in six years

Holdings in bullion-backed ETFs have surged as investors seek havens.
Gold has surged this year as investors seek protection from slowing global growth, the incessant trade war, and turmoil in the bond market. Picture: Bloomberg

Gold’s faring extremely well as a haven asset, with inflows into exchange-traded funds hitting 1 000 tons since holdings bottomed in 2016 after a prolonged unwind in the wake of the global financial crisis.

Total known ETF holdings expanded to 2 424.9 tons on Wednesday, the highest since 2013, following inflows over the past three years and a continued build-up in 2019, according to data compiled by Bloomberg. Current assets are about 1 000 tons higher than the post financial crisis nadir of 1 425.1 tons.

Gold has surged this year as investors seek protection from slowing global growth, the incessant trade war, and turmoil in the bond market that suggests the US may be headed for another recession. The rise has been aided by a rate cut from the Federal Reserve and expectations more will soon follow. This week, veteran investor Mark Mobius gave a blanket endorsement to buying bullion, saying accumulating the precious metal will reap long-term rewards.

© 2019 Bloomberg L.P.

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“Gold fairing extremely well as a haven asset”. This comment silences everyone that had a prior view that Gold as an asset call belongs to “history” (..and that it originated from a “barbaric age” where it belong).

😉

Having said that, to buy gold now after the highest EFT inflow in 6 yrs, likely indicate that the “horse has bolted” / “train left the station”.

Crypto?

End of comments.

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