There isn’t gold in them their hills.

Share post:

The appeal of exchange-traded funds (ETFs) backed by traditional safe-haven gold has declined this year due to receding fears of a U.S. economic slowdown, surging bond yields, and strong equity performance, despite ongoing inflation concerns. According to the World Gold Council (WGC), overall holdings in more than 100 gold ETFs dropped to 3,348 metric tons as of August 18, the lowest level since April 2020. Gold is typically sought after during times of economic uncertainty and rising inflation. However, the recent performance of equities and Treasury bonds has overshadowed gold’s appeal. Despite higher interest rates, equities have outperformed gold, while Treasury bonds have attracted investors looking for safer options.

ETF Newz Says:

While gold’s performance in 2021 has been positive, with a return of 3.5%, it has lagged behind the 13.8% return of the S&P 500 and the 11% return of 10-year U.S. bond yields.

Although some investors have pulled out of the gold ETF space, there remains a positive view of gold as an asset diversifier. Gold’s share of global financial assets, excluding central bank holdings, currently stands at around 1%, down from about 5% during the 1970s inflationary period.

Related

Maintain Your Horses! A Space Bitcoin ETF May perhaps well also Already Be Priced into Crypto.

There is a growing belief that the recent price surge in bitcoin could already factor in the potential approval of a spot Bitcoin ETF- a pivotal strategic investment move that holds significant influence in the crypto market. Investors and financial enthusiasts alike are keenly awaiting regulatory approval, a decision that could potentially catalyze the future growth trajectory of bitcoin prices. This speculation underscores not only the potential value that bitcoin holds as a digital asset but also the evolving role of institutional reactiveness in the cryptocurrency landscape.

Tim Draper’s Bold Prediction: Bitcoin (BTC) Price Set to Skyrocket to $250K!

In the world of finance, Bitcoin is increasingly recognized as a transformative force. With the potential to challenge...

Bitcoin ETF: Navigating the Perils of SEC Rejection and Fierce Opposition from Funds

A recent court order has directed the Securities and Exchange Commission (SEC) to reconsider its denial of Grayscale's...

Nike’s Shocking 10% Plunge: Sales Outlook Slashed

Nike, a leading athletic apparel⁢ company, ⁣recently announced plans to reduce costs by $2 ‍billion over the next...