Institutional and private investors use gold-backed ETFs and similar products.
Inflows or outflows in the gold ETF sector reflect the opinions of the participants. There were losses in 2023, including in December 2023, mainly in Europe, North America and other regions recorded inflows into the global gold ETFs. Last year, inflows were only seen in Asia overall. December was the ninth consecutive month of inflows into Asian funds.
This development was led by China, followed by Japan. Economic and geopolitical uncertainties also exist in these two countries. In Turkey, badly shaken by immensely high inflation, inflows reached their highest level in seven months. On the one hand, gold plays a special role in Turkey and on the other, inflation has almost led to a gold rush. As an investment with a stable value, gold scored particularly well with Turkish society.
2023 was the third year in a row in which there were outflows. Total holdings therefore decreased, but due to the high gold price, total assets under management increased by six percent. In North America, November and December saw inflows into the funds. A record-high gold price in December and ongoing geopolitical crises made gold attractive. Investors increasingly turned to the precious metal.
All in all, it is crises and high inflation rates that are making gold more attractive. Investors trust in the precious metal's ability to preserve value. Anyone who feels the same way and is betting on the positive consequences of the expected interest rate cuts by the Fed for gold should also take a look at the stocks of gold companies. Osisko Gold Royalties or Gold Royalty, for example, shine with the diversification inherent in royalty companies.
Osisko Gold Royalties - https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/ - has more than 180 precious metal offtakes and royalties. The revenue from this reached a record level in 2023.
Gold Royalty - https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ - also operates very successfully, with a very large portfolio of gold companies in North and South America.
Osisko Gold Royalties (- https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ -) and Gold Royalty (- https://www.resource-capital.ch/en/companies/gold-royalty-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
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