North America Led the Way as Gold Continued Flowing into ETFs Last Month
In 2017, nearly 200 tons of gold flowed into gold-backed ETFs. That positive trend continued in January, according to a report released today by the World Gold Council.
Gold-backed ETFs added 27.6 tons last month, growing assets by 5%. Global gold-backed ETFs collectively held 2,396 tons of the yellow metal at the end of January with a value of about $103.6 billion.
For the first time in several months, North American funds saw the biggest increase. US-listed ETFs accounted for 73% of global net inflows in January, reversing the 2017 trend in which European funds dominated net inflows. North American funds added 21.5 tons of gold last month valued at about $940 million.
European funds also saw net inflows, adding 7.6 tons in January. Asian funds had net outflows of 1.4 tons during the month. Other regions saw marginal outflows of 0.1 tons.
Inflows of gold into ETFs over the last two years and continuing into 2018 reverse 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.
Get Peter Schiff’s most important Gold headlines once per 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
Will the World’s Most Pro-Bitcoin Politician Embrace Gold?
Since Nayib Bukele became president of El Salvador, El Salvador has been in American media and global political discussion more than ever. While much of the attention focuses on Bukele’s mass incarceration of gang members and a decline in homicide of over 70%, Bukele has also drawn attention to his favoritism towards Bitcoin and how he […]
With gold hitting yet another awe-inspiring all-time high in the wake of Powell’s remarks reassuring markets (more or less) to expect rate cuts in 2024, a few analysts are pointing out risk factors for a correction — so is there really still room to run?Gold Hits New All-Time Record High
Gold hit a new all-time nominal high, surpassing the previous record set in December of the previous year. The precious metal’s price reached approximately $2,140, indicating a robust and continuing interest in gold as a safe-haven asset, despite a rather peculiar lack of fanfare from the media and retail investors. This latest peak in gold […]Is a Weak Yen Feeding the Global Gold Bull?
The gold price has been surging, with unprecedented central bank demand gobbling up supply. It has been a force to behold — especially as US monetary policy has been relatively tight since 2022, and 10-year Treasury yields have rocketed up, which generally puts firm downward pressure on gold against USD. World Gold Council: “Blistering Central Bank Buying” Fuels Strong Gold Demand
Total gold demand hit an all-time high in 2023, according to a recent report released by the World Gold Council. Last week, the World Gold Council (WGC) released its Gold Demand Trends report, which tracks developments in the demand for and use of gold around the world. Excluding over-the-counter (OTC) trade, 2023 gold demand fell slightly from 2022 […]