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Gold’s Best Year Since 1974 Sparks Record Inflows Into ETFs

March 15th, 2016

record gold holdingsTyler Durden:   Gold is up 19% year-to-date, by far the best performing asset-class, making this the best start to a year since 1974.

“Negative rates in Japan and Europe coupled with weak global growth have prompted a surge in interest,” notes one trader as Gold-backed exchange-traded funds saw a record inflow of $7.2bn in February, surpassing the previous high set in 2009, according to BlackRock.

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BlackRock’s iShares Gold Trust (ETF) (NYSEARCA:IAU) which saw creation halted due to the inability to meet excess demand for physical has not had one outflow this year.

 

And SPDR Gold Trust (ETF) (NYSEARCA:GLD) inflows are soaring.

 

This year $9.2bn has gone into gold-backed exchange-traded products, BlackRock said.

And it appears as The Fed remains on its rate-hiking-narrative path (and the rest of the world goes deeper and deeper into NIRP) perhaps this chart  – showing the Dow/Gold ratio breaking significant support - suggests gold will continue to outperform.

This article is brought to you courtesy of Tyler Durden From Zero Hedge.


NYSE:GDX, NYSE:GDXJ, NYSE:GLD, NYSE:IAU


 

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  1. Stan
    March 16th, 2016 at 06:28 | #1

    “And SPDR Gold Trust (ETF) (NYSEARCA:GLD) inflows are soaring.”

    I’ve been trying to do my due diligence on this fund. Anyone know why there is a clause in the GLD prospectus that states GLD has no right to audit subcustodial gold holdings? Why would the organizations behind GLD forfeit this right and create such a glaring audit loophole? I have not heard a single good reason for the existence of this loophole thus far. It also doesn’t help that GLD claims to be fully backed by physical gold bullion but yet it refuses to give retail investors the right to redeem for any of these ‘claimed’ gold bullion. There are a number of other red flags as well from what I’m reading:

    “Did anyone try calling the GLD hotline at (866) 320 4053 in search of numerical details on GLD’s insurance? The prospectus vaguely states “The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody.” When I asked about how much of the gold was insured, the representative proceeded act as if he didn’t know and said they were just the “marketing agent” for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.

    I remember there was a well documented visit by CNBC’s Bob Pisani to GLD’s gold vault. This visit was organized by GLD’s management to prove the existence of GLD’s gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this “GLD” bar was actually owned by ETF Securities.”

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