Most gold in ETFs as investors seek shelter; inflows hit 1,000 ton

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Published: August 22, 2019 12:13:17 PM

Total known ETF holdings expanded to 2,424.9 tons on Wednesday, the highest since 2013, following inflows over the past three years and a continued build-up in 2019.

Gold hits new high of Rs 38,820; silver jumps Rs 1,140Gold inflows hit 1,000 tons as investors seek shelter in ETFs. Image: PTI

Gold’s faring extremely well as a haven asset, with inflows into exchange-traded funds hitting 1,000 tons 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 tons 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 tons higher than the post-financial crisis nadir of 1,425.1 tons.

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 U.S. 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.

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