In addition, gold ETPs built on robust flows in August and September by adding $2.5bn in October. More than any commodity, gold is a natural beneficiary of the current monetary regime characterized by negative real interest rates.
Bonds and bond funds will decrease in value as interest rates rise. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
Gold and other precious metal prices may be highly volatile. The production and sale of precious metals by governments, central banks or other larger holders can be affected by various economic, financial, social and political factors, which may be unpredictable and may have a significant impact on the supply and prices of precious metals.
Information on SPY is provided strictly for illustrative purposes and should not be deemed an offer to sell or a solicitation of an offer to buy shares of any funds.
Dodd Kittsley, CFA, is the Head of Global ETP Market Trends Research for BlackRock.