Make Kitco Your Homepage

Commerzbank: ETFs Add To Gold, Silver Holdings

Kitco News

Exchange-traded funds have increased holdings of gold and silver so far this week, reports Commerzbank. Prices of both metals fell Tuesday. “Investors appear to be viewing the price slide as a buying opportunity, however, as gold ETFs saw inflows of 2.7 tonnes yesterday,” the bank says. “Holdings in silver ETFs have risen by 20 tonnes so far this week.” The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares.

By Allen Sykora of Kitco News; asykora@kitco.com

 

BMO: ETF Palladium Holdings Decline

Wednesday February 21, 2018 10:22

Exchange-traded-fund investors continue to pare back their exposure to palladium, one of the highest-flying commodities in 2017, reports BMO Capital Markets. “Total known palladium ETF holdings fell to 1.158 million ounces on Monday, hitting their lowest level since December 2009 as the outflows showed no signs of abating…,” BMO says. “Year-to-date ETF holdings have declined 13% and are down 26% since last September’s peak.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Commerzbank: Russian Central Bank Buying Gold; PBOC Stands Pat

Wednesday February 21, 2018 10:22

Russia’s central bank continues to add gold to reserves while the People’s Bank of China remains on hold, points out Commerzbank. Analysts cite news that the Russian central bank bought 600,000 ounces, or 18.7 tonnes, of gold in January as it continued to diversify its reserves. Analysts cite International Monetary Fund data showing that Turkey also bought large quantities of gold in January at 560,000 ounces or 17.4 tonnes. “Thus the Turkish central bank has topped up its gold reserves by a total of 205 tonnes over 13 consecutive months,” Commerzbank says. “This goes some way to plugging the gap left by the Chinese central bank. The PBOC, meanwhile, has bought no more gold for 15 months in a row. Kazakhstan continues to buy gold in small quantities, as it has been doing steadily for years.” 

By Allen Sykora of Kitco News; asykora@kitco.com

 

Metals Focus: Declining European Car Market To Hurt Platinum

Wednesday February 21, 2018 10:22

Platinum prices may be dinged by a decline in popularity of diesel-powered vehicles in Europe, says the consultancy Metals Focus. Diesel-powered vehicles require platinum for catalytic converters, while those powered by gasoline can use palladium. A LMC Automotive assessment of the European diesel car market in January shows that diesel’s share of western European sales continued to fall, slipping below 40%. Metals Focus points out this was the lowest since 2002 after the diesel share was around 55% seven years ago. “Diesel technology’s declining market share is of added concern as it is now coupled with a drop in absolute vehicle sales,” Metals Focus says. “In previous years, in spite of this share falling almost uninterruptedly since 2011, the trend in the number of diesel vehicles sold had not always followed suit….In the context of PGM [platinum group metals] automotive demand, platinum will most likely bear the brunt of this decline. An additional headwind for the metal is our expectation that diesel catalyst platinum loadings are unlikely to rise materially in the near term.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News