The price of gold has started to grow again, but the world's largest gold ETF fund, SPDR Gold Trust, reported a significant outflow of capital in early December. What's the reason?
Many investors decided to lock in their profits during the recent price rally. This is particularly true for the investors of SPDR Gold Trust – the largest exchange-traded fund whose shares are backed by physical gold. In the past few months, a large number of US investors have bought shares in this ETF. However, between December 1 and 7, it experienced a capital outflow of $679.3m, corresponding to 11.5 tons of gold. Right now, the fund's reserves amount to 1,179.78 tons.
We should note that the fund's reserves have grown by 32% in 2020 to reach 286 tons. Each share is backed by 1/10 of an ounce of physical gold. The overall inflow of capital to ETFs was an important supporting factor for gold prices. Accordingly, if investors start selling off their ETF shares, the price might slump.
Meanwhile, the largest silver-backed ETF, iShares Silver Trust, continues to record an inflow of capital. In the first week of December, its reserves grew by 0.3% or 53 tons to reach 17,052.76 tons of silver. In 2020 the fund's reserves have increased by 51% or 5,774 tons. According to analysts, the prices of both gold and silver will continue to rise in the coming weeks.
Website : https://gold.storage/
Whitepaper: https://gold.storage/wp.pdf
Follow us on social media:
Telegram: https://t.me/digitalgoldcoin
Steemit: https://steemit.com/@digitalgoldcoin
Reddit: https://www.reddit.com/r/golderc20/
Bitcointalk: https://bitcointalk.org/index.php?topic=5161544