Physically-backed gold ETFs attract $1.2bn in 2012

Net inflows to physically-backed gold products exceeded $1bn in 2012, according to exchange traded products (ETPs) provider ETF Securities.

In the ongoing financial and political volatility, investors have allocated $1.2bn assets to the firm’s physically-backed gold products, with demand for the securities mainly coming from Europe.

“Investors are understandably concerned about how to position themselves in light of continued market uncertainty. We continue to see lower overall trading volumes in the US and European stock markets, while global M&A activity has also been in decline. Yet inflows into our gold ETPs have been particularly strong this year, as investors seek additional exposure to the metal,” said Kris Walesby, head of capital markets at ETF Securities.

Walesby added that the liquidity of the physical gold market is a fundamental driver for a correct execution of the trade.

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