ETF “Costs and Liabilities” Sees Investors Migrating to Physical Allocated Gold
From www.goldseek.com
The head of industrial and precious metals trading at Barclays, Cengiz Belentepe, has told Bloomberg that investors are selling their investments in gold ETFs and opting for the safety of allocated physical gold.
According to Barclays, gold holdings in ETF products are growing at a slower pace than in 2004-2009 because some investors may be moving to physical bullion after initial purchases of an ETF.
Gold holdings in ETPs have increased 9.6% this year to a record 2,582.98 metric tons, data compiled by Bloomberg show. They rose 7.9% last year and 19% in 2010. Growth in gold ETP holdings has exceeded 35% from 2004 to 2009, the data show.
Barlcay’s Belentepe said “the question is whether the pace of buying has slowed, or whether the people have become a bit more sophisticated in recognizing the costs and liabilities.”
‘‘We’ve seen instances of people coming in, whose first step is to buy an ETF, second step is to get educated on how the market works, third step -- I’m going to shift this in direct gold purchase and storage, fourth step -- let me allocate this metal into these locations. It’s the early step they are all migrating through, expressing the same view but in different ways.” LINK...
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Physical gold stored outside the banking system and fully insured with our "U-Vault Account." Your gold is allocated, segregated, sealed and unemcumbered with a global vault services company with 50 years experience. Call for details. BK
From www.goldseek.com
The head of industrial and precious metals trading at Barclays, Cengiz Belentepe, has told Bloomberg that investors are selling their investments in gold ETFs and opting for the safety of allocated physical gold.
According to Barclays, gold holdings in ETF products are growing at a slower pace than in 2004-2009 because some investors may be moving to physical bullion after initial purchases of an ETF.
Gold holdings in ETPs have increased 9.6% this year to a record 2,582.98 metric tons, data compiled by Bloomberg show. They rose 7.9% last year and 19% in 2010. Growth in gold ETP holdings has exceeded 35% from 2004 to 2009, the data show.
Barlcay’s Belentepe said “the question is whether the pace of buying has slowed, or whether the people have become a bit more sophisticated in recognizing the costs and liabilities.”
‘‘We’ve seen instances of people coming in, whose first step is to buy an ETF, second step is to get educated on how the market works, third step -- I’m going to shift this in direct gold purchase and storage, fourth step -- let me allocate this metal into these locations. It’s the early step they are all migrating through, expressing the same view but in different ways.” LINK...
***************************************************
Physical gold stored outside the banking system and fully insured with our "U-Vault Account." Your gold is allocated, segregated, sealed and unemcumbered with a global vault services company with 50 years experience. Call for details. BK
