Gold was down today on a continuation of trends in place since mid-September. It finished at $1268.17 off $6.55 on the day. Silver also tracked lower finishing the day at $16.57, down 4¢. Both metals have had trouble finding solid footing amidst the unwinding of commodity exchange long positions and some short-selling.
Meanwhile, the World Gold Council reported earlier today that ETF inflows continued unabated as the price dropped in September. Thus far this year ETFs have added 192 tonnes of gold to their holdings. ETFs are the favored vehicle for funds and institutions globally. In short, as speculators unloaded paper positions, physical accumulators loaded up.
Quote of the Day
“With its long history as a store of value independent of the financial system, gold is a natural investment for many German investors. In 2016, Kantar TNS surveyed more than 2,000 German investors on our behalf, revealing that:
• 59% of respondents agreed with the statement that gold will never lose its value in the long-term
• 48% agreed with the statement that owning gold makes me feel secure for the long-term • 42% agreed with the statement I trust gold more than the currencies of countries.
When asked why they invested in gold, 57% of bar and coin investors said it was to protect their wealth and 28% said it was to make good returns in the long-term. It is clear gold fulfils an important long-term, wealth preservation role in German investors’ portfolios.” – World Gold Council, Germany’s Golden Decade
In keeping with that quote from the World Gold Council, new visitors might be interested to know that USAGOLD agrees with German investors on gold’s role in the long-term investment portfolio. Here is a page posted for high net worth investors that outlines our philosophy in that regard. . . .From that page:
“Commonality is probably something you would not expect to find as an attribute of a brokerage firm, but when it comes to gold it is an important one. Having a similar world view goes a long way in establishing the common ground essential to a good working relationship. For over 40 years we have resolutely advocated owning gold for asset preservation purposes. Admittedly, this philosophy does not resonate with all prospective gold owners, but if it does with you, we think you will find our firm a kindred spirit.”