Additionally, Johnson anticipates that new regulatory changes to commodity swaps, or over-the-counter derivative contracts, would force some managers to switch into commodity ETFs.
According to ETFGI, commodity exchange traded products, which include ETFs and exchange traded notes, attracted $23 billion in new inflows over 2012, a 52.3% rise over the $15.1 accumulated in 2011.
“Absolute demand for commodities will continue to increase and the marginal cost of supply will also rise further,” Nicholas Brooks, head of research and investment strategy, said in the article. [Gold Coin Sales Keep Falling as Investors Buy Bullion ETFs]
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Max Chen contributed to this article.