Tuesday, January 30 2018
By GCRU Gold News on Tuesday, January 30 2018, 23:18
The Perth Mint's release of digital gold certificates for trading, holding, and transferring physical gold could have profound consequences for the $US98 billion ($122.5 billion) in gold-backed exchange traded funds.
When that occurs the Perth Mint's digital certificates could become a genuine challenger to gold-backed ETFs, which now own about 2,362 tonnes of gold, according to the World Gold Council.
Tuesday, January 23 2018
By GCRU Gold News on Tuesday, January 23 2018, 23:19
With holdings in gold-backed ETFs at the highest level since 2013, New York Stock Exchange Arca Inc. is seeking to list the Perth Mint Gold ETF Trust, according to a U.S. government filing. Gold Corp., a Western Australian state government-owned entity, will store the fund’s gold and facilitate transfers, including shipments, according to the filing.
Wednesday, January 10 2018
By GCRU Gold News on Wednesday, January 10 2018, 00:11
Global gold-backed ETFs collectively held 2,363 tonnes(t) (US$98.1bn) at the end of 2017 as funds added 197.5t of gold, equivalent to US$8.2bn, during the year — an increase of 8.4% in global AUM from December 2016.
Wednesday, September 6 2017
By GCRU Gold News on Wednesday, September 6 2017, 07:47
Global gold-backed ETFs collectively hold 2,295t. Gold-backed ETFs have added 143.5t, equivalent to $5.3bn so far this year. This represents an increase of 5.5% of global AUM.
Thursday, June 1 2017
By GCRU Gold News on Thursday, June 1 2017, 08:02
IAU just dropped 1,169,591oz of gold... worth almost $1.5 billion....
Friday, April 21 2017
By GCRU Gold News on Friday, April 21 2017, 01:56
Investors stepped up buying of the world’s largest gold-backed exchanged traded fund by the most in seven months amid concern about the outcome of European elections and a more aggressive U.S. stance on North Korea, Syria and Iran.
Holdings in SPDR Gold Shares climbed 1.4 percent Wednesday to 860.76 metric tons, the biggest one-day increase since September and the highest since Dec. 7. With gold futures up 11 percent this year, buyers are pouring funds into the non-interest bearing metal as the dollar fluctuates and Treasury yields hover close to the lowest levels this year.
Wednesday, February 15 2017
By GCRU Gold News on Wednesday, February 15 2017, 23:59
The SPDR Gold Trust, an exchange-traded fund which holds 836.7 tonnes of bullion worth $33 billion, now falls in line with rules from the Accounting and Auditing Organization for Islamic Financial Institutions.
"Middle Eastern buyers have been transacting in gold long before the SPDR ever came into existence. As a result, I don't think this will necessarily pave a new avenue for untapped demand," said INTL FCStone analyst Edward Meir.
Tuesday, January 31 2017
By GCRU Gold News on Tuesday, January 31 2017, 03:04
The SPDR® Long Dollar Gold Trust (NYSEArca: GLDW) offers investors an innovative way to access the gold market by removing the potential negative influence of a strong U.S. dollar (USD) on the price of gold. GLDW seeks to track the daily performance of a long position in physical gold and a long position in the US dollar against a basket of non-US currencies, including the euro (EUR), Japanese yen (JPY), the British pound (GBP), the Canadian dollar (CAD), the Swedish krona (SEK) and the Swiss franc (CHF). The structure of this ETF effectively provides investors the benefit of owning an exposure to gold as though they had purchased it using a basket of six, non-US dollar currencies.
By GCRU Gold News on Tuesday, January 31 2017, 03:02
Launched by the World Gold Council and State Steet Global Advisors (STT), the SPDR Long Dollar Gold Trust began trading today on the New York Stock Exchange Arca as the first U.S. listed gold-backed ETF that also hedges against a strong U.S. dollar.
Because gold is priced in U.S. currency, it becomes more expensive for foreign buyers when the dollar gains in value against other currencies. So as the U.S. dollar strengthens gold prices typically weaken.
The SPDR Long Dollar Gold Trust, which trades under the ticker GLDW, is designed to hedge against a strong U.S. dollar. Like its cousin, the SPDR Gold Trust, (GLD) it buys and holds the actual precious metal, not miners or other gold-related stocks. Yet the fund also uses a currency hedge strategy, going long on the dollar against a basket of foreign currencies on a nightly basis. The fund settles those positions every day, receiving payment in the form of gold bars.
Thus, if gold prices rise, investors profit. But they can benefit if the price of gold falls if the value of the dollar rises more. If gold price fall more than the dollar strengthens, then the fund loses value.
Tuesday, January 24 2017
By GCRU Gold News on Tuesday, January 24 2017, 22:56
The four exchange-traded funds backed by the metal that have attracted the most money this year are all based in Western Europe. Frankfurt-listed Xetra-Gold tops the list, bringing in about $544 million last week, the biggest weekly inflow since at least 2012, according to data compiled by Bloomberg.
European investors are piling into gold, fueling the metal’s rebound, amid concern that Trump’s "America first" rhetoric and plans to scrap regional trade deals will impede global economic growth. Adding to the anxiety is the impact from Britain’s exit from the European Union and the growing popularity of anti-establishment politicians running in this year’s elections in Germany, France and the Netherlands.
Wednesday, January 4 2017
By GCRU Gold News on Wednesday, January 4 2017, 02:07
Gold-backed Exchange Traded Funds (ETFs) have grown strongly in scale and popularity over the last decade and their combined gold holdings now surpass all but the largest central bank gold reserve holdings. However, its important to understand the mechanics of these gold-backed ETF investment vehicles and to appreciate what they can and can't provide to gold investors.
Thursday, December 1 2016
By GCRU Gold News on Thursday, December 1 2016, 04:36
Exchange traded investment vehicles backed by physical gold refer to a group of trusts, funds, or other legal entities which hold gold bars with a custodian in a vault and which issue securities, units or other fractional ownership claims against that gold. These securities are pitched and marketed as an alternative to direct ownership of gold bullion and these products have seen significant expansion and evolution over the last 10-12 years.
There are a number of such products including Exchange Traded Funds (ETFs) and Exchange Traded Certificates (ETCs). These product classes now represent a relatively large footprint within the gold investing space. In addition to the very large and well-known SPDR Gold Trust (GLD) and iShares Gold Trust (IAU), there are several other similar products from providers such as ETF Securities, Source ETFs, and Xetra-Gold. At the time of writing, GLD held nearly 900 tonnes of gold, ETF Securities products held over 300 tonnes, iShares gold ETFs held approximately 275 tonnes of gold, and Xetra-Gold held 110 tonnes. Therefore, their combined gold holdings are now larger than all but the world’s largest central bank gold reserve holdings.
As popular as these securities are, it’s important to look at what exactly these products provide, and what they don’t provide when compared to ownership of segregated physical gold bars or gold coins.
Saturday, November 19 2016
By GCRU Gold News on Saturday, November 19 2016, 01:37
With traders pricing in near certainty that U.S. borrowing costs will rise next month, silver investors are heading for the exit.
This month through Thursday, almost $79 million was pulled from iShares Silver Trust, the largest exchange-traded fund backed by the metal. That would be the biggest monthly outflow since January. Holdings in all silver-backed ETF tracked by Bloomberg worldwide fell by 2.9 million ounces, set for the first monthly decline in 10 months.
Tuesday, November 15 2016
By GCRU Gold News on Tuesday, November 15 2016, 06:54
GLD's holdings hit a 2016 high early July, but nearly 50 tonnes have been pulled from the fund since then, reducing the value of holdings by $5.5 billion as the gold price retreats. Year to date, holdings are up still up 290 tonnes.
Monday, October 10 2016
By GCRU Gold News on Monday, October 10 2016, 09:46
At the end of September, total holdings in physically-backed gold exchange-traded products stood at 2,335.6t (75.1 moz), representing a 38.1t month-on-month increase. In value terms, total holdings were worth US$99.3bn, 3% higher than at the end of August.
Thursday, September 15 2016
By GCRU Gold News on Thursday, September 15 2016, 00:01
The gold held in custody by Deutsche Börse Commodities GmbH for the purpose of physically backing the Xetra-Gold bond has risen to a new record high of 100.97 tons, an increase of approximately 70 per cent since the beginning of the year. For each Xetra-Gold bond, exactly one gram of gold is deposited in the central vaults for German securities in Frankfurt.
The recent rise is due especially to demand by institutional investors.
Friday, September 9 2016
By GCRU Gold News on Friday, September 9 2016, 01:39
In 2013 we’ve witnessed the inception of the Chinese gold ETF market. At first demand for the gold ETFs was neglectable, as investors mostly preferred to buy the physical gold directly at the Shanghai Gold Exchange (SGE) or buy jewelry or investment bars through retail channels. This year, however, there has been a major shift in gold ETF demand in China.
The physical holdings of Chinese gold ETFs have surged five-fold from 7 tonnes at the end of January, to 35 tonnes at end of August. The Huaán Yifu Gold ETF, which was holding 23 tonnes in August, entered the global top 15 list.
Monday, July 11 2016
By GCRU Gold News on Monday, July 11 2016, 08:43
One of the most notable developments accompanying the gold price rally of 2016 has been the very large additions to the gold bar holdings of the major physically backed gold Exchange Traded Funds (ETFs). This is especially true of the SPDR Gold Trust (ticker GLD).
Central banks continue to report leased and swapped gold (gold receivables) as an asset on their balance sheets. This accounting fiction, which doesn’t follow any international accounting standards is a sleight of hand that allows the same gold to appear to be in two places at once. If gold bars that have been leased from central banks are being held in the SPDR Gold Trust, then these gold bars are being double-counted, and GLD shareholders should be made aware that the Trust is holding gold that has been ultimately borrowed from central banks. Using borrowed central bank in an ETF doesn’t put the ETF on the hook, since the ETF owns this gold. But it does mean that the bullion banks will need to return the equivalent borrowed gold to the lending central bank from other sources. Importantly though, this type of activity will overstate the amount of gold held by the combined official sector and ETF sector.
Thursday, July 7 2016
By GCRU Gold News on Thursday, July 7 2016, 07:54
Global gold holdings topped 2,000 metric tons for the first time since July 2013 as the fallout from the U.K.’s vote to quit the European Union fuses with rising speculation that U.S. rates won’t rise any time soon to fire up a hunt for haven assets. Prices continued their ascent as miners rallied.
Tuesday, July 5 2016
By GCRU Gold News on Tuesday, July 5 2016, 01:18
Demand for safe haven ETPs rise as uncertainty continues. Last week saw long gold, silver and long CHF recording strong inflows of US$433.5mn in total. Inflows into gold ETPs of US$263mn on Friday 1st July were at their highest since inception. Gold and the Swiss Franc have historically been sought after for their safe haven traits allowing investors to hedge portfolios from downside risks. We expect demand for haven assets to remain elevated as uncertainty surrounding the UK’s leadership contest and its formal exit from the EU block remain high. While the Bank of England is preparing for more monetary policy easing, Deutsche Bank and Santander failed the US Federal Reserve stress test again, keeping investors nervous.