The world’s largest gold fund (GLD) posted net inflows of just under $ 1.5 billion this week. The official gold holdings of this gold ETF grew by 25 tons.
Institutional investors get gold
With the rising gold price and increasing uncertainty about the global economy, more and more institutional investors are investing in gold-backed Exchange Traded Funds. The largest in this segment is the SPDR Gold Trust (US Stock Exchange Code: GLD). Each share of this US-traded fund is officially backed by 1/10 ounce of gold. For many large capital managers, gold ETFs are a simple and relatively inexpensive way of positioning themselves in the gold market, even if it is ultimately just a gold derivative.
High cash inflows
This week, the SPDR Gold Trust has now received significant support. 25 tons of gold have also been stored for new shares, according to official figures. This equates to net inflows of $ 1.48 billion. Overall, this fund has accumulated 880 tonnes of gold. Since the beginning of the year 111 tons have been added. However, official deposits are still far from their 2012 highs.
Record high in 2012
At that time, the GLD inventory comprised 1,351 tonnes of gold. So far there are still 471 tons left to the record high. These are likely to be reached if the price of gold continues its upward movement in the coming weeks and, ultimately, the US dollar, a new all-time high falls. It is, depending on the trading place, at around $ 1,900 per ounce. From the current level ($ 1,530), the price of gold would rise by 24 percent.