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

Global Gold Holdings in Gold-Backed ETFs Up for Fourth Straight Month

  by    0   0

Total holdings of gold in gold-backed ETFs grew for the fourth straight month in January.

Globally, ETFs added 72 tons of the yellow metal to their holdings last month, according to the latest data released by the World Gold Council. This brought the total amount of gold held by funds worldwide to 2,513 tons valued at about $107 billion.

Total holdings have not been this high since March 2013. At that time, the price of gold was 22% higher. Global gold-backed ETF holdings have grown 6% over the past two months alone. According to the WGC, market uncertainty and a shift in sentiment that pushed the price of gold up by 3.5% in January alone were primarily responsible for driving the increase.

Total holdings in global gold-backed ETFs finished $100.6 billion in 2018, the first time they have eclipsed the $100 billion mark since 2012.

January flows were positive in every region with North America leading the way.

Gold flowed out of North American funds for most of 2018, with the total falling by 13.4 tons on the year. But the trend began to turn around in the fourth quarter as the US stock market sold off. Gold continued to flow into North American funds in January with the addition of 53 tons.

Holdings in European funds grew by 20 tons last month. According to the WGC, Brexit uncertainty was a primary driver of investment demand in the UK and Europe.

Asian funds basically held steady, adding 0.1 tons last month.

The movement of gold into ETFs over the last 3 years reversed a 3-year trend of outflows between 2013 and 2015.

 

Inflows of gold into ETFs are significant in their effect on the world gold market, pushing overall 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 latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
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

Peter Schiff: Who’s Going to Pay for the Green New Deal? Because You Can’t Print Wealth

In his most recent podcast, Peter Schiff dug into the politics behind the Green New Deal and specifically asked a key question: who is going to pay for all this? Related

READ MORE →

A Record Number of Americans Are Delinquent on Their Car Payments

a check engine light is onA record number of Americans have fallen behind on their car payments. On Tuesday, the New York Federal Reserve released its Household Debt and Credit report covering the fourth quarter of 2018. Not only has indebtedness hit record highs, eclipsing levels seen on the eve of the Great Recession, but Americans are also having a […]

READ MORE →

US Household Debt Breaks Another Record

The national debt has pushed above the $22 trillion mark, but it’s not just Uncle Sam borrowing himself into oblivion. US household debt climbed to a record $13.54 trillion in the fourth quarter of 2018, according to a report released by the Federal Reserve Bank of New York. Total household debt (including mortgages) now stands $869 billion […]

READ MORE →

National Debt Tops $22 Trillion

The national debt has pushed beyond the $22 trillion mark. According to Treasury Department data released Tuesday, the national debt now stands at $22.01 trillion. When President Trump took office in January 2017, the debt was at $19.95 trillion. That’s a $2.06 trillion increase in the debt in just over two years.  Related

READ MORE →

The US Government Has Spent Itself Inbetween a Rock and a Hard Place

As we pointed out in an article last week, the US federal government has added $1.5 trillion to the national debt over the last 12 months. As a result, the US Treasury Department is flooding the market with bonds. Meanwhile, the biggest buyers of US debt – China, Japan and the Federal Reserve – are […]

READ MORE →

Comments are closed.

Call Now