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Bailey McCann, Opalesque New York: "It's been surprising to see just how much interest we've had in gold since the start of this year," Greg Collett, Director, Investment Products at the World Gold Council tells me during an interview at the SALT Conference last week in Las Vegas. "The 21 percent increase in a few months is unprecedented."
Collett may be specifically focused on gold in his role, but he's not wrong. Investors have piled into gold in recent weeks and gold ETFs hit new highs during yesterday's trading day on soft Chinese economic data, and a weaker dollar. "We think there is long-term support for the interest in gold," Collett added. "A significant portion of sovereign debt has negative interest rates making it challenging for investors to find yield and gold is a worldwide commodity."
Gold demand reached 1,290 tonnes Q1 2016, a 21% increase year-on-year, making it the second largest quarter on record, according to the latest Gold Trends Report from the World Gold Council. "Inflows were reportedly from a broad investor base,
from institutional to private. Notably, there is anecdotal
evidence that many of these inflows are from investors
initiating or rebuilding strategic, long-term holdings after
the wash-out of positions since early 2013," report authors wrote.
Some of those institutions have announced new and large positions this week. The Uni...................... To view our full article Click here
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