Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

ETF Gold Holdings Hit Highest Level Since March 2013

  by    0   0

Gold holdings in gold-backed ETFs globally surged to the highest level in over six years in July.

Gold-backed ETFs added 52 tons of gold last month, with net inflows totaling $2.6 billion, according to the latest data released by the World Gold Council. This follows on the heels of a June increase that totaled 127 tons.

Globally, gold-backed funds now hold 2,600 tons of gold. That’s the highest level since March 2013.

The WGC says a combination of economic concerns, trade tensions and geopolitical risks, along with global monetary policy shifting to a more accommodative stance, all helped drive inflows of gold into ETFs.

Gold flowed into ETFs in every region of the world in July. North American funds led the way, adding 43 tons of the yellow metal.

European listed funds brought in 7.5 tons of gold. ETFs in Europe have seen net-positive flows of metal in every month this year, except April. According to the World Gold Council, “Looming concerns over Brexit, generally weaker currencies, negative interest rates, as well as other idiosyncratic risks, have supported gold investment demand.”

Speaking of Brexit, UK-based fund holdings charted all-time highs in July, reaching 556 tons. That represents 21% of global gold-backed ETF assets.

Asian funds added 0.8 ton of gold in July. Chinese funds increased holdings as investors reacted to a significant gold price increase in local currency.

On the year, gold-backed ETFs have added a net 159 tons of gold despite outflows of metal in February, April and early May. Strong inflows in North American-listed funds in June and July have increased that region’s contribution to 2019 growth. North American ETFs have added 73.5 ton so far this year, compared to 94.6 tons in Europe

Inflows of gold into ETFs are significant in their effect on the world gold market, pushing overall demand higher. Gold demand was up 8% through the first half of 2019. The World Gold Council listed inflows of metal into g0ld-backed funds as one of the factors driving demand higher.

ETFs are backed by physical gold held by the issuer and are traded on the market like stocks. They allow investors to play gold without having to buy full ounces of gold at spot price. Since their purchase is just a number in a computer, they can trade their investment into another stock or cash pretty much whenever they want, even multiple times on the same day. Many speculative investors appreciate this liquidity.

There are good reasons to invest in ETFs, but they aren’t a substitute for owning physical metal. In an overall investment strategy, SchiffGold recommends buying gold bullion first.

When considering gold-backed ETFs, you should always keep in mind that you don’t actually own the gold. Buying the most common ETFs does not entitle you to any actual amount of the precious metal.

Download SchiffGold's Gold vs GLD EFT's Guide Today

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Fed Minutes Show No Sign of Backing Off Monetary Hail Mary

Don’t expect the Federal Reserve to pull back on its monetary Hail Mary anytime soon. The central bank released the minutes from the June meeting yesterday. There were no big surprises, but they did reaffirm the Fed’s commitment to continuing its unprecedented monetary policy into the foreseeable future.

READ MORE →

Citibank Joins Mainstream Gold Bulls Forecasting Record Prices

Citibank has joined other mainstream gold bulls calling for record gold prices. Citi raised its gold price forecast this week. It now projects a three-month price of $1,825 per ounce and for the yellow metal to head into record territory in 2021. Citi analysts expect gold to eclipse the $2,000 mark early next year.

READ MORE →

Which Corporate Bonds the Fed Has Bought So Far?

Earlier this month, the Federal Reserve announced it would begin buying individual corporate bonds. Now we have our first glimpse at what that means in practice. On Saturday, the Fed released a disclosure statement that lists the bonds purchased by the central bank.

READ MORE →

More Mainstream Bullishness for Gold

Earlier this week, we reported Goldman Sachs now forecasts record gold prices within the next 12 months. Well, Goldman isn’t the only mainstream player turning more bullish on gold.

READ MORE →

Goldman Sachs Eyes Record Gold Price in Next 12 Months

Even the mainstream is getting bullish on gold. Goldman Sachs now forecasts record gold prices within the next 12 months. Goldman analysts say gold will likely reach $2,000 per ounce within the next year thanks to ultra-low interest rates and concerns over currency debasement.

READ MORE →

Comments are closed.

Call Now