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

ETFs Globally Add Gold for the First Time Since Summer

  by    0   0

Global ETF gold holdings increased in November for the first time since this summer.

Gold-backed ETFs saw net inflows of 13.6 tons last month. Total holdings rebounded from year-to-date lows to 3,578 tons. According to the World Gold Council, investment demand for larger gold ETFs returned with decades-high inflation and heightened market volatility.

Gold ETFs reversed course with inflows into large North American and European ETFs despite only a small increase in gold prices. It was the first net increase in ETF gold holding since July.

Inflows of gold into North American funds led the way recording a 12.1-ton increase in holdings.

European funds added 5.6 tons of gold, led by large funds in France and the United Kingdom.

Both the US and the eurozone face inflationary pressures. In the US, the October CPI reached the highest level since 1990. Eurozone inflation hit a record high.

Asian funds experienced net outflows of 5.0 tons of gold. This was primarily driven by tactical selling in China as the local gold price rose and equity markets stabilized. Holdings began to recover later in the month as gold prices fell. Inflows into Indian funds help offset selling by Chinese funds.

Funds in other regions, including Australia, added about 1-ton of gold.

Inflows of gold into ETFs are significant in their effect on the world gold market, pushing overall demand higher.

There’s a difference between investing in gold-backed ETFs and physical gold. Learn more here.

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 Free Guide

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

The Tax Man Cometh! And Not Just for Billionaires

The tax man cometh! And thanks to the Democrats in Congress, there will be more tax enforcers shining their lights into the nooks and crannies of Americans’ finances.

READ MORE →

Fed Balance Sheet Reduction Not Delivering as Promised

The Federal Reserve is all-in on the inflation fight. Or is it? While everybody focuses on interest rate cuts, the promised Fed balance sheet reduction isn’t going quite as promised.

READ MORE →

Record Consumer Debt Levels Continue to Climb

Consumers continue to add to their record level of debt as higher prices squeeze wallets. Americans added another $40.1 billion to the debt load in June, according to the latest data from the Federal Reserve. That represents a 10.5% year-on-year increase.

READ MORE →

Central Banks Added Gold at Faster Pace in June

Central bank gold buying notched up again in June. Central banks globally added 59 tons of gold to their reserves last month and there were no reported sales, according to the latest data compiled by the World Gold Council.

READ MORE →

Labor Market Showing Cracks as Job Openings Decline More Than Expected

Despite back-to-back contractions in GDP, President Joe Biden, Fed Chair Jerome Powell, Treasury Secretary Janet Yellen and all of their supporters in the corporate media insist the US economy isn’t in a recession. But the only data they ever point to in order to back up their assertion is the “strong” labor market. The problem […]

READ MORE →

Comments are closed.

Call Now