From Yahoo Finance · · 1m 20s
North American Gold ETF Buying Surges
North American gold ETFs jumped 108-fold in one month as real yields rise.
In brief
North American gold ETFs jumped 108-fold in one month as real yields rise. North American gold ETF buying surged 108-fold from $71 million to $7.7 billion in August, testing GLDM's durability amid rising real yields. Originally reported by Yahoo Finance.
North American Gold ETF Buying Jumped
North American gold ETF buying exploded 108-fold from $71 million in July to $7.7 billion in August, landing weeks before the Fed's September policy move.
GLDM's Performance Metrics
GLDM charges 0.10% and has returned 236% over ten years, but sits down 3% after the Fed's September rate hike pushed real yields to 2.68%.
Real Yields as Deciding Factor
The 10-year Treasury yield sits at 5.00%, its highest reading in the trailing year, while real yields climbed from 2.42% to 2.68% in September.
Global Gold Holdings Record
Global gold holdings hit a record 4,189 metric tons on $18 billion of inflows in August, with North American ETFs driving the surge.
Bull and Bear Cases for GLDM
The bull case rests on durable demand, while the bear case focuses on rising opportunity costs as real yields climb to multi-month highs.
GLDM's Durability Test
GLDM's 0.10% fee and physical backing make it the most efficient way to own gold if the August surge reflects structural demand rather than a temporary momentum wave.
The essence
North American gold ETF buying surged 108-fold from $71 million to $7.7 billion in August, testing GLDM's durability amid rising real yields.
