ETF Gold Holdings Hit Highest Level Since March 2013

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Forbes Gold Schiffgold | James Alexander Michie

A publicly traded fund (ETF) is an investment fund traded on stock exchanges, just like stocks. An ETF owns assets such as stocks, commodities or bonds and generally operates with an arbitration mechanism designed to keep it operating near its net asset value, although occasionally deviations may occur. Most ETFs track an index, such as a stock index or a bond index. ETFs can be attractive as investments due to their low costs, fiscal efficiency and similar characteristics.

Now, ETF Gold Holdings reached the highest level since March 2013. And it is that gold holdings in gold-backed ETFs rose globally to the highest level in more than six years in July.

In this way, it is understood that gold-backed ETFs added 52 tons of gold last month, with net entries totaling $ 2.6 billion, at least, according to the latest data published by the World Gold Council. This way it has been said that this follows in the footsteps of a June increase that totaled 127 tons.

A supported level

It should be noted that globally, gold-backed funds now have 2,600 tons of gold. That is the highest level since March 2013.

For its part, the WGC says that a combination of economic concerns, trade tensions and geopolitical risks, along with the shift of global monetary policy to a more accommodating stance, helped boost gold inflows to ETFs.

One fact that must be mentioned is that gold flowed to ETFs in all regions of the world in July. Thus, US funds led the way, adding 43 tons of yellow metal.

Likewise, it is understood that gold inflows into ETFs are important in their effect on the world gold market, pushing the general demand upward. And it is that the demand for gold increased at least 8% during the first half of 2019. In this way, the World Gold Council listed the entries of metal in funds backed by the world as one of the factors that drove the demand.

Similarly, ETFs are backed by physical gold held by the issuer and traded in the market as shares. They allow investors to play gold without having to buy full ounces of gold at a spot price.

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Source: Schiffgold

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