Commerzbank: demand for gold and silver ETFs ‘very robust’

Berlin-Germany (Mar 30)  Investors are continuing to flock to gold and silver exchange-traded funds, said Commerzbank analyst Carsten Fritsch.

These ETFs track the price of the commodity, with metal put into storage to back the shares, giving investors access to the price of the metals without having to take on costs such as assaying and storage.

As a sign of the “very robust” demand, Fritsch pointed out that the ETFs tracked by Bloomberg registered inflows of 64 metric tons last week, with the majority going into the SPDR Gold Trust in the U.S.

“This is used by institutional investors in particular, who apparently still regard gold as a portfolio stabilizer despite this strategy having not really worked all that well recently…,” he said, referring to price declines earlier this month. “Retail investors may also have resorted to gold ETFs of late given that the availability of coins and bars is limited at present. The series of inflows has also been continuing for silver; another 215 tons were reported on Friday, though most of the inflow already happened on Thursday. As a result, inflows for the week as a whole totaled 774 tons, which was the biggest weekly inflow since July 2019, when silver ETFs registered massive inflows over a number of weeks.”

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