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Investment in gold jumped to 448 metric tons in the second quarter, or more than double the figure of the same period year-over-year, largely due to a year-over-year increase in ETF investment to 236.8 metric tons, compared to a 23 metric ton outflow the year prior.
Higher interest rates weigh on gold and other hard assets as the commodity pays investors nothing and struggles to compete with yield-generating assets when borrowing costs increase.
“Turning to gold specifically, LaForge explains that enough gold has now been mined that were all the above-ground gold distributed equally among the earth’s human inhabitants, each would receive 0.8 ounces of the precious metal — one of the highest such amounts since 1950,” according to CNBC.
Tom Lydon’s clients own shares of GLD.