Standard Chartered: Resilience Of New Gold ETP Investors Untested

Thursday May 25, 2017 09:03
The most recent 13-F filings of institutional investors with the U.S. Securities and Exchange Commission showed a number of newcomers to gold exchange-traded products, along with some established holders, Standard Chartered says. “While the universe of gold investors has expanded, their resilience has yet to be tested,” the bank says.  Should gold prices dip below $1,200 an ounce, Standard estimates that around 300 tonnes of ETP holdings will become loss-making. “The resilience of ETP investors can vary widely, from those who are speculative in nature to longer-term investors,” Standard adds. The bank reports that gold holdings across physically backed ETPs are flat for the month to date, while inflows are up by just over 80 tonnes for the year so far, following a 524-tonne rise in 2016.

By Allen Sykora of Kitco News