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The good news for gold ETFs is that inflation could serve as a catalyst for the yellow metal. Rising inflation could also prove to be a catalyst for gold ETFs. By some metrics, the Fed has under-estimated U.S. inflation, which could prove beneficial to gold because the yellow metal is historically a popular inflation fighter.
While costs for some miners are seen dropping, the reality is mining gold miners are not close to replacing what they produce, meaning higher gold prices could follow as supply dwindles.
Tom Lydon’s clients own shares of GLD.