Gold Investors Vanish

August 06, 2023

by Adam Hamilton Zeal LLC

Gold investors have vanished, at least American stock-market ones! Despite gold’s strong upleg since late September, identifiable investment demand through major gold ETFs has been all but nonexistent. That lack of investment-capital inflows has certainly retarded gold’s secular bull. But with unsustainable unusual factors driving this anomalous disconnect, gold investment demand should start normalizing soon.

The best-available global gold investment data is only published quarterly by the World Gold Council in its fantastic Gold Demand Trends reports. The latest covering Q2’23 was just released this week, revealing anemic gold investment demand last quarter. The WGC’s crack analysts reported that ran 256.1 metric tons, surging 19.8% year-over-year. But that is split into two subcategories, physical bars and coins and ETFs.