Gold ETFs: Investors bet big on the safe haven asset | WeForNews | Latest News, Blogs Gold ETFs: Investors bet big on the safe haven asset – WeForNews | Latest News, Blogs
Connect with us


Gold ETFs: Investors bet big on the safe haven asset



smuggling gold price

Mumbai, Aug 17 As the global economic scenario remains subdued and trade tensions remain volatile, investors have bet big on the safe haven of gold-backed exchange traded funds (ETF).

According to data from the World Gold Council (WGC), globally investors poured about $2.6 billion into gold-backed ETFs in July, the highest monthly investment since March 2013.

The Gold Exchange Traded Funds (ETFs) are simple investment products that combine the flexibility of stock investment and the simplicity of gold investments.

As per a report by natural resources investing company, Goehring & Rozencwajg, the Gold ETF bull run to continue for the foreseeable time.

“This (gold) bull market will be driven by Western investors, we should start to see robust physical accumulations of both gold and silver through the various ETFs which we believe will be the Western investment community’s vehicle of choice,” the Goehring & Rozencwajg report said.

“In the last several months, physical accumulation has indeed developed in both gold and silver physical ETFs.”

The report noted that ETF gold holdings are now approaching their old highs reached back in 2012.

The same phenomenon of rise in valuation of gold ETFs can be witnessed in India as value of the ETFs on the NSE have risen since April 1 in contrast to the subdued Nifty50 index.

The report further said that, “with central banks becoming significant buyers of gold instead of sellers and with producers no longer forward-selling their production, the only potential source of physical supply over the last eight years has come from the physical gold ETFs”.

Since their introduction in 2004, ETFs have become significant players in physical gold markets. Over an uninterrupted eight-year stretch, physical gold ETFs accumulated 2,600 tonnes of gold by the end of 2012, the report said.

The report showed that after the 2008 financial crisis, most of the inflows into the physical gold ETFs came from investment firms and hedge funds.

It observed that while buying gold in the 1970s was complicated as one had to either buy gold futures, physical coins or bars, or gold equities, the gold ETFs have made buying gold extremely accessible.

“Public participation in the coming bull market will be comparatively easy.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

5 × 4 =


Samsung ‘Galaxy Fold’ coming to India on Oct 1




New Delhi, Sep 24 : Samsung is finally bringing its much-anticipated and most-premium smartphone “Galaxy Fold” to India on October 1 — just a month after its global debut in South Korea — highly-placed sources told IANS on Tuesday.

The smartphone-cum-tablet “Galaxy Fold” smartphone is likely to be priced between Rs 1.5 lakh-Rs 1.75 lakh in India. It will be sold through select retail outlets and will be available only via pre-book mode, the sources added.

Galaxy Fold will come with exclusive access to specialized customer care services – including one-on-one access to Samsung experts, and a 24/7 support hub online or over the phone.

The smartphone was originally set to be released on April 26 but the manufacturer delayed it to fix units that experienced display issues.

Galaxy Fold comes with a 7.3-inch Infinity Flex Display and six cameras. The device has a secondary 4.6-inch screen on the cover of the phone. It opens up with 7.3-inch infinity flex display and when closed, it becomes 4.6 inch display with a 12:9 ratio.

The premium smartphone is backed by 7nm Qualcomm Snapdragon 855 octa-core SoC, paired with 12GB of RAM and 512GB storage.

“Galaxy Fold” combines consumers’ favourite smartphone and tablet features to deliver a new kind of experience — from a new form factor and materials to its unique foldable UX, versatile camera and premium performance.

“Consumers have responded positively to larger screens, and the Galaxy Fold’s revolutionary form factor offers a bigger, more immersive screen without sacrificing portability. This is what we call innovation of new mobile experience in action,” DJ Koh, President and CEO of IT and Mobile Communications Division, Samsung Electronics said in a statement recently.

Galaxy Fold is Samsung’s fourth 5G smartphone, following the Galaxy S10, Note 10 and A90, reinforcing its product portfolio for the ultra-fast network.

Continue Reading


RBI bars PMC Bank from business transactions



Reserve Bank of India RBI

Mumbai, Sep 24 The Reserve Bank of India has placed the Punjab & Maharashtra Cooperative Bank Ltd, Mumbai from carrying out any kind of business transactions, here on Tuesday, sparking panic among the banks depositors and sending shock waves in city trading community.

The apex bank’s Chief General Manager Yogesh Dayal said that as per the RBI directions, depositors cannot withdraw more than Rs 1,000 of the total balance in their savings/current/other deposit accounts.

The PMC Bank has been barred from granting, renewing and loans and advances, make any investments, accept fresh deposits, etc, without the prior written approval from RBI.

Continue Reading


End of Boeing 737 MAX grounding up to individual countries, says US FAA



Two Boeing 737 MAX aircraft crashed over the past year — the first in Indonesia in October 2018 and the second in Ethiopia in March. The second tragedy led to world aviation authorities and carriers either grounding all 737 MAX series aircraft or closing their airspace to them.

The US Federal Aviation Administration (FAA) said Monday that the FAA continues to follow a thorough process, not a prescribed timeline, for returning the aircraft to passenger service, adding that “aach government will make its own decision to return the aircraft to service, based on a thorough safety assessment”.


Continue Reading

Most Popular