‘Dip-Buyers’ Send Gold ETF Holdings Soaring To Record Highs

“There seems to be a battle between [precious metals] investors going on,” notes Georgette Boele, precious metals strategist at ABN Amro Bank NV.

The last few weeks have seen Gold ETFs register significant inflows (6 days in a row most recently) as precious metal prices have been lower and the infamous ‘dip-buyers’ take advantage of these lower prices to stack some more paper gold.

Bullion prices have come under pressure as real yields have accelerated amid positional shifts by investors around the election and fiscal stimulus.

Source: Bloomberg

But as gold prices dipped, ETF inflows accelerated, sending the total gold ETF holdings to a record high as ABN’s Boele points out that “ETF buyers have more confidence than buyers in the futures market.”

Source: Bloomberg

We saw this similar pattern emerge in the early summer, only for gold prices to rapidly catch up to the demand picture.