However, reluctance exists due to the ambiguity of the real assets label and also, concerns related to market cyclicality and volatility. Investors are also often limited by existing strategies in the marketplace that focus on a specialized area within real assets and lack flexibility to adapt to changing market conditions.
“ETFs saw a fifth consecutive quarter of inflows. Holdings grew 32.4t, due to growth in US-listed funds. Q1 investment was mixed, with rising interest rates on the one hand and a sharp spike in stock market volatility on the other,” according to the WGC.
Some market observers believe support for gold is firm at $1,300. The recent safe-haven buying could help gold maintain its current levels as more investors try to diversify their core portfolio positions in more volatile markets.
For more information on the gold market, visit our gold category.
Tom Lydon’s clients own shares of GLD.