Investors have been piling into gold in 2020 to hedge against financial market and economic concerns. Some investors worry that the coronavirus could lead to a protracted period of economic weakness. Others worry that all the stimulus unleashed by global central banks could spur rapid inflation.
Gold is seen as a hedge against those possibilities—and others.
In the first six months of the year, investors around the world pushed $39.5 billion into gold ETFs, according to the World Gold Council—the largest amount deposited in the funds in any year. Those inflows are continuing in July; $4.2 billion has flowed into GLD and IAU since the start of the month, pushing the two funds’ combined year-to-date inflows up to $24.8 billion.
~ Summit Roy, "Gold Sets New Record High Price," ETF.com, July 24, 2020
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