More Data Reveals Demand for Gold Down, But ETFs Up

More data is revealing that they’re putting physical gold on hold and picking up on gold exchange-traded funds (ETFs). Gold ETF inflows are continuing even as the U.S. economy begins to slowly reopen following the pandemic.

“The lion’s share went to the U.S., where a new record figure of 111.7 tons was achieved,” said gold market analyst Carsten Fritsch. “By contrast, exports to Asia collapsed almost completely.”

As Kitco news reported, no gold was shipped to China for the second straight month. Additionally,  just one kilogram was shipped to Hong Kong, while 500 kilograms went to India.

“The record-high exports to the U.S. are probably due mainly to the robust demand for gold ETFs,” Fritsch said. “According to the World Gold Council, it was the gold ETFs listed in the U.S. that profited most of all from this in April. Shipments of gold to the Comex warehouses is likely to be another factor given that Swiss gold refineries were able to resume production in early April after a two-week interruption. In April alone, the Comex holdings more than doubled to a good 20 million ounces.”

For investors who don’t want to miss this golden opportunity, here are a few gold-backed ETFs to consider:

  • GraniteShares Gold Trust (BAR): seeks to reflect generally the performance of the price of gold. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in gold.
  • Perth Mint Physical Gold ETF (AAAU): seeks to provide investors with an opportunity to invest in gold through shares, and have the gold securely stored by the Custodial Sponsor; reflecting the performance of the price of gold less the expenses of the trust’s operations is the secondary consideration. The trust holds London Bars and Physical Gold of other specifications without numismatic value. It receives gold deposited by Authorized Participants in exchange for the creation of Baskets and delivers gold to Authorized Participants in exchange for Baskets surrendered to it for redemption.
  • VanEck Merk Gold Trust (OUNZ): seeks to provide investors with an opportunity to invest in gold through the shares and be able to take delivery of physical gold in exchange for those shares. The Trust’s secondary objective is for the shares to reflect the performance of the price of gold less the expenses of the Trust’s operations. Each share represents a fractional undivided beneficial interest in the Trust’s net assets. The Trust’s assets consist principally of gold held on the Trust’s behalf in financial institutions for safekeeping.

For short-term traders looking for leverage can use miners to play gold indirectly via funds like the Direxion Daily Gold Miners Bull 3X ETF (NYSEArca: NUGT), VanEck Vectors Gold Miners (NYSEArca: GDX)and the Direxion Daily Jr Gold Miners Bull 3X ETF (NYSEArca: JNUG).

For more market trends, visit ETF Trends.