2016 Gold ETF Inflows Exceed Outflows From All Of 2015
Gold continues to flow into global exchange-traded funds, with the total for 2016 already exceeding the exodus from all of last year, says Commerzbank.
The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. “The gold price once again found support from substantial inflows into the ETFs, yesterday again seeing 5.3 tonnes,”
Commerzbank says. “Since the beginning of the year, holdings in the gold ETFs tracked by Bloomberg have been increased by 154 tonnes. Thus inflows into ETFs this year have already exceeded the total outflows of last year -- 138 tonnes. Gold therefore remains in demand in the current market environment, characterized as it continues to be by high levels of uncertainty.”
Further, central banks are still expanding their gold reserves, Commerzbank adds. “In January, for example, Russian and Chinese central banks bought 13.6 and 16 tonnes of gold, respectively; both are therefore continuing their gold purchases of last year.”
Allen Sykora |
