Economic uncertainty and sovereign risk in western markets has boosted flows into gold exchange-traded products, according to the World Gold Council (WGC).
WGC says concerns over Greece's public finances and debt contagion fears in Europe fuelled strong buying in gold ETPs, as well as gold coins and bars during May. ETF Securities, for example, saw new flows of $105m into its gold ETCs in the week ending 21 May, bringing total inflows over the past six weeks to $1.2bn. WGC CEO Aram Shishmanian says: "Currently, European gold investment demand is exceptionally strong, especially from German and Swiss investors." He adds: "This is mainly attributable to concern over public debt levels in the eurozone and the potential inflationary impac...
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