Gold futures’ 28-percent rise this year have been driven largely by $50 billion of new investment in exchange-traded funds (ETFs) backed by gold, according to the World Gold Council.
ETFs made up 40 percent of the world’s gold demand in this year’s second quarter, compared to 6 percent a year previous.
As a result, ETFs backed by physical gold deposits held about 3,620 metric tons on 1 July, more than any country other than the U.S.
Share prices of SPDR Gold Shares and iShares Gold Trust are up 60 percent this year; many smaller gold-backed funds have done even better.
