What were the three most popular investments over the last month?
If we’re judging by ETF inflows, the three areas that investors piled into were precious metals, government bonds, and low-volatility equities.
Notably, it was gold ETFs that set a new record with their highest monthly inflows in eight years, as investors bought $7.9 billion of securities in February. This is according to the latest from market data company Markit, that also noted that inflows relative to assets under management (AUM) were equally as impressive.
More specifically, last month’s buying represented an increase of 14.6% in terms of AUM. This is a level only surpassed once before during the heat of the Financial Crisis, when inflows relative to AUM hit 17.7% in February 2009.
Miners Get Some Love
Gold mining companies have also received some appreciation so far in 2016, with the Gold Miners (GDX) and Junior Gold Miners (GDXJ) benchmarks up 40.7% and 38.2% respectively YTD.
Despite outperforming gold so far on the year, the GDX hasn’t seen the same kind of inflows as the physical commodity. In fact, February saw $25 million of net outflows to the gold mining ETF.
This phenomenon isn’t uncommon in the gold sector, as the performance of the metal and the return on miners isn’t always congruent.
Here’s the latest GDX/Gold ratio, which essentially tracks the price of the major gold miners relative to the metal itself:
If the gold rally continues, there will be no shortage of opportunity for mining stock speculators. That’s why we gave you three reasons to consider gold in 2016 last month.
Gold is NOT an investment….. It’s an insurance policy…. stay away from ETF’s. It’s Wall Streets casino, and we all know the house always wins!!
Olivia Newton John sang it best back in 1981 “Let’s Get Physical” if your going PM’s
The investors expect to get their money back plus a stated premium when the ETFs mature and investors roll them over instead of taking physical gold. I don’t trust the ETF pushers and think one day those investors will only get a Bronx Cheer.
Not only physical gold is in VERY tight supply, but that of silver too.
That’s why Blackrock’s Gold ETF (IAU) will NOT be issuing anymore Gold Trust shares. They can’t find any physical gold to back up the paper. Not in the amount they require.
The other precious metals ETF’s continue to pump out the paper like there’s no tomorrow! The day of the BIG margin call fast approaches. When the tide suddenly recedes, exposing all those who are swimming naked. Time gentlemen. All accounts to be settled by the end of the this business day.
If you think you own gold by owning an ETF, then you have a VERY rude awakening coming.
The state of the union is strong, but smell isn’t everything!
OutLookingIn,
The usual outcome of a lack of supply for something in demand is rapidly rising prices to free up more supply on the open market.
Seems like this go round the larger purchasers are simply stopping their purchases so demand doesn’t go up and the price is remaining relatively low as a result.
IMO -and IMO only since I’m not an in the know insider- this is a strategy to keep prices lower than would otherwise be warranted till a future date when the speculators and holders will give up and sell out, and it may well work to do that.
[img
[/img]
If the crowd is doing it , be very careful.
Then there is BitGold
Gold ,Silver ,Fiat ,Insulin, Can of friggen Beans . Pick your poison .
In my personal life I need a functioning society . My responsibilities are to the God entity , family , friends , then those less fortunate than me .
Paper is just a claim on future goods .
My issue is how the fuck do you produce viable insulin for someone that is wrote in your heart to care for ?
I will walk thru fire . I will die if need be . I cannot produce at this moment viable insulin for one so dear to my heart . . I can only enjoy the moments in time that I have with my daughter . She does so much ,her light is so bright .
I chastise myself for being unable to protect her from this condition .
What is the purpose of gold silver fiat or anything else ?
It is having power.
Having enough power that no one else’s power can influence you .
I will not give up , I cannot give up , I will strive to have the strength of purpose to achieve my ends , which is the same as most everyone, to protect my child .
Sometimes ,on this forum, it is the only outlet I have . To Vent !
Getting it off my chest so to speak , be well all , I hope you have lives of ease .