Gold price slips as traders weigh outlook for Fed interest rate cuts
Bullion traded near $2,626 an ounce in thin trading after closing 1.1% higher on Friday.
While some analysts argue that the continued climb in gold will increasingly rely on purchases by central banks, the world’s biggest asset manager is seeing a different pattern unfold.
Barron’s quotes Kevin Feldman, a managing director at BlackRock’s iShares group, writing on the company’s blog site that “over the past year, we’ve seen a noticeable shift from larger institutional purchases of gold and silver ETFs to a significant increase in individual investors doing so.”
The total number of accounts holding the iShares Gold Trust (IAU) and the iShares Silver Trust (SLV) is up 83%, he adds. Of those, most represented relatively small share holdings by individual investors.
To put it more specifically, the number of accounts with 1,000 shares or less doubled for SLV and almost tripled for IAU in the past 12-months through June, Feldman noted.
The piece goes on to find that the ease of use ETFs have given gold investors is one reason behind the massive new appeal of precious metals. Feldman also points to “performance chasing” as another likely suspect. Either way, it brings up a question of how “sticky” gold and silver ETF assets will prove to be in the future.
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6 Comments
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The value of gold and silver appreciates over time.
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According to latest reports, US still has the largest gold reserves in the world.
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Before investing in a physically backed ETF to take advantage of rising metal prices, investors must know the risks.
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Gold and silver ETFs need to contend with important trendline resistance before any rocket launch.
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