Gold Up 27% YTD; Who Is Really Buying Gold?

Despite gold prices ending the U.S. day session moderately lower Wednesday, the metal is up 27% year to date. Think about that a minute, says Nick Colas, chief market strategist for New York- based Convergex, ‘as we celebrate the S&P 500 making a new high but only +4.5% for 2016 in price terms.’ So who is buying gold here, and why? ‘Consider that U.S. listed exchange-traded funds have been an important buyer of physical gold this year, adding $16 billion to their stockpiles from incremental money flows. Across all types of U.S. listed ETFs, gold funds now have 2.3% of all assets under management,’ says Colas. But he adds that the gold trade is far from crowded. (show less)

Despite gold prices ending the U.S. day session moderately lower Wednesday, the metal is up 27% year to date. Think about that a minute, says Nick Colas, chief market strategist for New York- based Convergex, ‘as we celebrate the S&P 500 making a new high but only +4.5% for 2016 in price terms.’ So who is buying gold here, and why? ‘Consider that U.S. listed exchange-traded funds have been an important buyer of physical gold this year, adding $16 billion to ... (read more)

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