Gold has been a shining star in a dazzling year for the exchange traded product industry. A pandemic-propelled flight to safety has led a rush for the millennia-old store of value, as huge dollops of quantitative easing have reignited fears of runaway inflation in some quarters, such as the US, Japan, UK and the eurozone.
The result has been net new flows of $64.2bn into commodity ETPs in the first seven months of 2020, up from just $7.8bn in the same period last year, according to data from consultancy ETFGI — despite a meltdown in oil ETPs earlier this year when crude prices briefly turned negative.
“What started as a flight to safety has evolved into the means by which investors are trying to salve their wounds with respect to potential future inflation,” said Ben Johnson, director of global ETF research at Morningstar.
Goldplat plc (LON:GDP) is an AIM-listed, profitable gold recovery services company with two market leading operations in South Africa and Ghana.