Gold ETF Holdings Hit All-Time High
While investing in gold exchange-traded funds (ETFs) may not be the best choice for most investors, there’s no doubt that they remain popular with many mainstream investors. And because data on private gold investment remains difficult to come by, investment in gold ETFs can be a useful proxy for overall private demand in the gold market. By that measure, gold demand continues to strengthen as more and more investors put their trust in the yellow metal to keep their investments safe.
In fact, gold holdings at ETFs have reached all-time highs, with over 2,800 tonnes of gold now being owned (or claimed to be owned) by ETFs. That surpasses the previous highs that were set in 2012, back when gold was just coming down from its all-time high spot price. And that’s a very bullish indicator for the future.
In the aftermath of the 2008 financial crisis, not only did gold’s price rise but so too did gold demand. With ETF holdings rising significantly back then, they should also continue to rise today as the economy weakens and gold rises in value. That increased demand will benefit investors who have already made the move into gold.
One important thing to recognize about gold ETF holdings today is that the US no longer holds the overwhelming advantage in gold holdings it once did. Whereas US investors once held nearly two-thirds of global ETF gold, they only hold about half today, with European investors increasing their holdings substantially.
That could prove to be an important factor as the German economy falls into recession and as Britain comes close and close to Brexit. Asian demand has also increased and, as China and India increasingly seek to crack down on imports of gold, expect investors in those countries too to begin increasing their investment in gold ETFs.
Thankfully in the US we have a myriad of options to choose from when it comes to investing in gold. Whether it’s gold ETFs, collectible gold coins, or a gold IRA, investors can protect their retirement savings with gold and save themselves from the heartbreak of seeing their assets lose value during times of economic turmoil.