BMO: ETF holdings of gold, silver keep rising

Editor’s Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today’s must-read news and expert opinions. Sign up here!

(Kitco News) – Holdings of gold and silver by global exchange-traded funds are continuing to rise, said BMO Capital Markets. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. Analysts cited Bloomberg data showing that ETFs have now posted gold inflows for 20 business days in a row, with another 154,000 ounces going into vaults Thursday, meaning year-to-date gains of 20%, BMO said. “Meanwhile, this is fast being caught by silver, where holdings are now up 18% YTD after a 12.1Moz inflow yesterday,” BMO said. “Silver tends to outperform when there is an expectation that the industrial cycle is past its worst, and of course when gold is on an uptrend. Both are the case at present, plus we see signs of increased retail interest, which is crucial for silver-price formation.”