Gold & Silver

Investors hoard most gold in ETFs in 6 years

Bloomberg August 22 | Updated on August 22, 2019 Published on August 22, 2019

Total known ETF holdings expanded to 2,424.9 tonnes on Wednesday, the highest since 2013   -  Bloomberg

Gold is faring extremely well as a haven asset, with inflows into exchange-traded funds hitting 1,000 tonnes since holdings bottomed in 2016, after a prolonged unwind in the wake of the global financial crisis.

Total known ETF holdings expanded to 2,424.9 tonnes on Wednesday, the highest since 2013, following inflows over the past three years and a continued build-up in 2019, according to data compiled by Bloomberg. Current assets are about 1,000 tonnes higher than the post-financial crisis nadir of 1,425.1 tonnes.

Gold has surged this year as investors seek protection from slowing global growth, the incessant trade war, and turmoil in the bond market that suggests the US may be headed for another recession. The rise has been aided by a rate cut from the Federal Reserve and expectations more will soon follow.

This week, veteran investor Mark Mobius gave a blanket endorsement to buying bullion, saying accumulating the precious metal will reap long-term rewards.

Published on August 22, 2019
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