Even with the price of gold and silver down yesterday and the equities putting in a solid performance, we witnessed large inflows into the gold and silver ETFs. I find this increase surprising, especially the way gold traded yesterday, but it seems there is no stopping the interest this investment is creating. Currently the gold ETFs are at 54.4 million ounces, up from 51 million ounces just two weeks ago. Silver also showing positive inflows over the last seven days.
What does this all mean? What I find interesting is the broad based interest this product has been attracting. From the individual retail investor to the large hedge funds (and those in-between), everyone seems to want a piece of the action. Without a doubt these inflows have been helping the price of gold to stay well over the magical $1,200 level.
Many financial advisors have indicated that there are more and more investors putting a higher percentage of their portfolios into the yellow metal. The question remains will this momentum continue? At the time of this report the price of Gold is up over $10 dollars per ounce at $1,220 per ounce, off from the highs overnight around the $1,226 level. If this continues I expect there will be an uptick in the physical arena. There will always be the investor more interested in holding the actual metal than holding a paper ETF.
Have a wonderful Tuesday.
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