The Rise of Gold ETFs: Two Sides to the Story

Moreover, we are seeing increased central bank demand after the lackluster performance in precious metals in prior years. Central banks accumulated net purchases of gold of 483 tons in 2015, the second highest annual total since the end of the gold standard, reports Emiko Terazono for the Financial Times.

Among the top gold hoarders of 2015, Russia was the largest buyer of gold for the fourth consecutive year, raising ownership by 206 tons as the country diversifies its depreciating ruble currency. Meanwhile, China, whose currency will be added to IMF’s reserve currency basket, announced its first increase in gold holdings since 2009, acquiring 104 tons int eh second half of the year to 1,742 tons.

SPDR Gold Shares

Tom Lydon’s clients own shares of GLD.