InvestorQ : Why are a lot of gold ETFs buying gold so much?
Anu Biswas made post

Why are a lot of gold ETFs buying gold so much?

Neelam Naik answered.
10 months ago

The biggest source of gold demand in the first half of 2020 has been from the exchange traded funds or ETFs at a record 734 tons. Now ETFs are holding close to 3624 tons of gold in custody. Clearly, investors and portfolio managers are increasingly looking at gold as an additional asset class to reduce overall portfolio risk.

It also has a lot to do with stimulus package with the $6 trillion boost that has found its way into passive ETFs including gold ETFs. Lastly, there is investment demand for gold as a store of value and also as a non-fiat currency. Today, every other currency in the world is being debased due to unlimited printing by central banks. Gold with limited supply seems to be a lot better in comparison.