https://www.kitco.com/news/2021-04-08/107-5-tonnes-of-gold-flowed-out-of-global-ETFs-in-March-World-Gold-Council.html107.5 tonnes of gold flowed out of global ETFs in March - World Gold Council
Neils Christensen Neils Christensen
Thursday April 08, 2021 10:56
Kitco News
***(Kitco News) - The gold market is starting to attract some new bullish momentum, but the market has a big hill to climb as data shows just how dismal the precious metal market has been since the start of the year.
Rising bond yields and resilient strength in the U.S. dollar took their toll on the gold market last month as investors liquidated their gold-backed exchange-traded funds (ETFs) at an extraordinary pace, according to the latest data from the World Gold Council.
Thursday, the WGC said that 107.5 tonnes of gold, valued at $5.9 billion, flowed out of global ETF products in March. The report noted that the gold market had seen strong outflows in four of the last five months.***
Because of current market environments/ inflations concerns /administrations duties and Feds' actions, commodities may skyrocket after summer and beyond???
Comments
https://medium.com/crypto-lucid/gold-is-now-a-green-bitcoin-d12c439cca0f
What to Make of Gold’s Slide?
crossingwallstreet.com/archives/2021/04/cws-market-review-april-9-2021.html
The Natural Rate of Interest:
the-natural-rate-of-interest
Knut Wicksell:
https://en.wikipedia.org/wiki/Knut_Wicksell
Gold’s perked up in recent days. Near $1750 after dipping below $1700. Mining stocks have recovered. OPGSX, of which I own a bit, is almost back to break-even for the year. Encouraging after a poor start to ‘21.
Don’t try to read much into gold’s fluctuations. Its price swings mean little day to day or even week to week. Trends can quickly reverse in either direction. 4-5% one-day swings in mining funds occur. If you want to own, hold for the long term. Yes - you can try to time it, but very risky.
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@bee - FWIW: One source I read (by subscription) has argued lately that “real” interest rates have actually been falling this year because the rate increases in bonds aren’t keeping up with inflation. I don’t know if that’s right or not - but it’s an interesting way of looking at the bigger picture.
Just a hunch about gold & commodities/ think gold may been flying into physical bullion markets??!!
Many friends and colleagues thought commodities may sky rocket after summer and at least 12 24 months after/ many are buyingt & jump onto their ships too
“When you buy gold and silver physically backed ETFs you do not own the physical metal, you own a paper representation. With respect to the gold ETFs, for every share you buy, you "own" one tenth of an ounce of gold; for silver, it's one ounce.The actual metal is stored by a custodian , usually one of the large banks like JPMorgan”
My take ... While the ETF investors didn’t own gold directly, it appears their shares of the gold ETF were backed by physical gold stored somewhere. Now ... for every ounce of gold sold from the ETFs there must have been someone else buying that ounce. I think JohnN’s speculation about smaller investors buying-up large quantities of gold in the form of bullion coins, etc. is accurate. Also, I think I’ve read somewhere recently that some central banks around the world are loading up.
Here Central Banks Add Over 8 Tons of Gold to Reserves in February
Point - The outflowing gold was actually just changing hands . I’m tempted to say it moved from weaker hands into stronger ones.
How much gold exists above ground? Here “The best estimates currently available suggest that around 201,296 tonnes of gold has been mined throughout history,”
(Note: Some types of gold ETFs own futures contracts rather than the metal. Not sure whether John’s article is including that type ETF in its reporting.)