“GLD dwarfs other physically-backed exchange traded gold products holding 48.8% of the global total as of today at 950 tonnes or 30.5m ounces worth $40.3 billion. GLD’s holdings have shot up by 308 tonnes this year to the highest since July 2013,” according to Mining.com. “The rise in assets under management in 2016 is a better performance than the banner years of 2009 and 2010 when investors caught in the global financial crisis and spooked by quantitative easing piled into GLD.”
Gold bullion prices have surged this year as the Fed previously signaled it would slow the pace of interest rate normalization this year – higher interest rates typically weigh on gold prices since the hard asset provide no yield and would become less attractive to higher-yielding conservative debt assets in a rising rate environment.
For more information on the Gold ETFs, visit our Gold category.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD.