The SPDR Gold MiniShares Trust (GLDM) celebrates its first birthday today, leading the pack in flows for all gold backed ETFs since coming to market.
GLDM has amassed 17.6 tonnes worth approximately $810 million. Year-to-date, GLDM has traded $11 million per day and seen $334 million of inflows – almost twice as much as its nearest competitor.
State Street Global Advisors and the World Gold Council have teamed up to offer research, analysis, and commentary to help financial advisors respond to client requests of insights on market developments and the role of gold as a strategic asset.
What’s more, according to George Milling-Stanley, Head of Gold Strategy at State Street Global Advisors, the launch of the product has proven to be well-timed.
“The success of GLDM in accumulating assets under management of around three quarters of a billion dollars in less than a full year of operation supports the view that this was the right product at the right time,” Milling-Stanley said. “Investors across the whole universe of ETFs were seeking lower share prices and lower expense ratios, and GLDM has clearly satisfied this search.”
Instead of using the fund to respond to a specific market environment, investors in GLDM are using the ETF as a low cost, long term strategic allocation, Milling-Stanley said.
“That I believe suggests GLDM has a considerable future ahead of it,” he said. “As for today’s market, investors across the board are increasingly allocating to hold as an asset they perceive to be defensive in the face of potential weakness in equities in the event of a recession.”
Commex Gold futures is at $1,411.50 as of 10:30 am ET today.
“I have been looking for gold to make inroads into the area of technical resistance between $1,350 and $1,380 since the Spring of 2013,” Milling-Stanley said. “Market moves over the past couple of days support that view, with the gold price reaching prices we last saw in 2013. While it is still too early to call this a breakout above the six-year trading range, I for one am encouraged by the fact that speculative interests did not immediately take profits as the price drove up through the $1,350 level.”
For more gold investment strategies, visit our Gold Category.