Investor interest in gold has lead the price of the precious metal and related ETFs to new highs.
The largest gold ETF, SPDR Gold Shares (GLD), is up 35% on the year with the latest up-leg beginning in mid-August. GLD holdings now stand at 1,114 metric tons, the highest level since early July.
Gold’s strength is mainly a result of a volatile and weakening dollar. Some investment managers also point to concerns about the strength of other major currencies such as the Euro and Yen as a reason to hold gold.
Another recent development is the buying of gold by India’s central bank – see the WSJ story Central Banks Join a New Gold Rush. Over the past several years, most central banks have been net sellers of gold.