People Are Not Selling Stocks, They Are Selling Gold - State Street Global Advisors Gold Strategy Head

Gold has stayed muted when stocks have been tumbling, leaving experts scratching their heads but one expert said that correlation is not always so iron-clad.
Investors have been their selling gold to cover margin calls on stocks, explained George Milling-Stanley, Head of Gold Strategy for State Street Global Advisors. "Interest for gold was strong before the dump in stocks. It's basically investors who bought a lot of stock on margins, rather than selling stocks at depressed prices, people have been selling gold. When everything goes down, gold doesn't' necessarily go up," he said in an interview on Thursday.
Gold and silver prices are holding modest gains in late Thursday. April gold was last up $2.80 at $1,317.40. March silver was up $0.102 at $16.34.
But even if gold prices are muted in this environment of stock market volatility, there is definite interest in the yellow metal coming from the U.S. and Canada.
But it's not physical.
While sales of physical bullion have been lackluster in North America, gold-backed exchange-traded funds added more tonnes than those of Asia and Europe combined during January, accounting for more than half of global net inflows -- this according to the World Gold Council on Thursday. (show less)

Gold has stayed muted when stocks have been tumbling, leaving experts scratching their heads but one expert said that correlation is not always so iron-clad.
Investors have been their selling gold to cover margin calls on stocks, explained George Milling-Stanley, Head of Gold Strategy for State Street Global Advisors. "Interest for gold was strong before the dump in stocks. It's basically investors who bought a lot of stock on margins, rather than selling stocks ... (read more)

Kitco News

Kitco News
The Kitco News team speaks to analysts and experts on the frontlines of the market to get the most up-to-date news on the economy. The show offers a well-rounded, timely view on big market moves and any major headlines that may affect financial assets. Coined – no pun intended – as the number one source of precious metals news, Kitco News is the leading provider of up-to-date price action in the precious metals space.

Disclaimer: The content on this website, including, without limitation, news, videos, interviews and commentaries, is provided by Kitco Metals Inc. ("Kitco") for informational purposes only and is not intended as any form of advice, whether legal, accounting, investment, financial or tax advice. Therefore, it cannot be relied upon as such. Should you require such advice, contact a licensed professional. The content provided herein is provided on an "as is" basis without any warranty of any kind, whether express or implied and your use of the information provided in said content is entirely at your own risk. In no event will Kitco be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content on this website.