Gold inflows highest in close to two years

November 25, 2014

New York (Nov 25)  Inflows into gold exchange-traded products have hit their highest levels since February 2013, according to ETF Securities.

“Gold inflows rose to their highest since February 2013 last week following a 2.4% gain in price. With gold having fallen close to its marginal cost of production (which we estimate at US$1100/oz), investors increasingly believe that mine production will be cut in 2015, helping to tighten supply,” said associate director Nitesh Shah.

He added that at the end of this week the Swiss will vote on whether to require their central bank to hold 20% of its assets in gold and if the proposal does pass, he expects a sharp rally in gold. Opinion polls only show 38% of the population is in favour of the proposal however.

Elsewhere in the ETP market oil ETPs saw the eighth consecutive week of inflows with a total of US$10.8m. Silver ETPs saw s third consecutive week of inflows, copper ETFs had strong inflows, while on the other side of the coin natural gas and soybeans were among the commodities seeing outflows during the month.

Source: PortfolioAdviser

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