SPDR Gold Shares (NYSEArca:GLD) Assets + $18-B in 2016
Gold may emerge as one of the Brexit vote’s biggest commodity winners should revised forecasts from a growing number of banks prove correct as the poll’s outcome sets the stage for greater global economic uncertainty and hobbles the likelihood of rate rises from the US Fed.
Notably, GLD has seen an $18-B YTD rise in assets under management, it is highest since physically-backed fund’s inception in 2000
Once the largest fund of its kind in the world, top physical Gold-backed exchange traded fund is having a record 1-H in Y 2016.
After 3 years of a declining price and investors liquidating positions built up during the metal’s Bull run, this year the fund’s assets under management have swelled by $18.5-B YTD.
GLD is the largest physically-backed exchange traded Gold products holding 48.8% of the global total today at 950 tonnes or 30.5-M ounces worth $40.3-B.
GLD’s holdings have risen by 308 tonnes so far in Y 2016 to the highest mark since July 2013.
The rise in assets under management in Y 2016 is a better performance than Y’s 2009 and 2010 when investors caught in the global financial crisis and cautioned by QE ran to Gold.
Gold ETFs were credited for a big portion of the metal’s uninterrupted 12-year Bull run, because ETFs make it so easy to invest in the precious Yellow metal.
GLD was listed on 18 November 2004 and saw good 1st day. Investors bought just over 8 tonnes or 260,000 oz of Gold giving the fund a net asset value of $115-M.
On 22 August 2011 when Gold hit record highs above 1,900 GLD became the largest ETF in the world briefly surpassing the venerable SPDR S&P 500 Trust at a net asset value of $77.5-B.
Gold holdings in the trust peaked in December 2012 at 1,353 tonnes or 43.5-M oz.
That dove in Y 2013 as the price sank and investors pulled 552 tonnes from the fund. That year GLD had just 17 days of inflows.
Those who got in on the GLD at the beginning are enjoying returns 135%, in contrast to money into the S&P 500 in November 2004 is now worth + 77% today.
|HeffX-LTN Analysis for GLD:||Overall||Short||Intermediate||Long|
|Bullish (0.25)||Bullish (0.39)||Bullish (0.35)||Neutral (0.01)|
By Frik Els
Paul Ebeling, Editor