The fact that gold demand is soaring isn’t such a surprise, but the fact that gold exchange traded funds (ETFs) are responsible for a large portion of that demand may be.
The World Gold Council recently came out with its gold demand picture, and the numbers are pretty impressive:
- Total gold demand for the second quarter was up 36%, or up 77% in U.S. dollar denominations.
- ETFs were the largest contributor to the spike in gold sales. Demand rose a staggering 414% in the period, the second-highest growth in quarterly demand on record. The council said that investors favor ETFs when it comes to getting gold exposure because they’re a more accessible way of doing so. [Hedge Funds Buying Gold ETFs; Should You?]
- Consumer electronics are also a large contributor to the demand for gold, up 14% from last year.
- China and India are two major sources of gold demand, particularly as jewelry. This is especially true in China, where gold jewelry demand grew 5% in the quarter. [How To Protect Yourself From A Gold ETF Sell-Off.]
- In Europe, the gold demand is spurred by retail investment and is expected to remain strong.
According to the ETF Analyzer, there are nine ways to play gold. The three below are your physically-backed options. To find other types and sort by various criteria, visit the Analyzer!:
- SPDR Gold Shares (NYSEArca: GLD)
- iShares Comex Gold Trust ETF (NYSEArca: IAU)
- ETFS Gold Trust (NYSEArca: SGOL)
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.