For gold is now the most pleasant times - has assured the soil for growth.Falling stocks create the demand for protective assets. Government bonds in this sense is quite not interesting - on the materials AMarkets.
Metal recently had the best rally in the past two weeks, earning more than 1.2% this week. The moral basis for the rally - the confidence of investors that the Fed will not raise rates until March. Gold also reacted positively when stocks fell in Asia and Europe. The weak dollar - is also an excellent base for the growth of the metal. Gold rose 27% in the current year. Bonds extremely unattractive, if judged in terms of sovereign debt - $ 9 trillion.Dynamics Bloomberg Global Developed Sovereign Bond Index Index signaled to investors that the one who holds the bond prior to maturity, will certainly suffer losses. If you look at the dynamics of futures, March - the very point when the Fed still cmozhete increase the interest rate with a high probability. The favorable dynamics of the gold market stimulates investors to invest in a gold ETF. This also applies to the retail players and institutional investors.
For example, Eric Myundich of Eton Park Capital Management nearly tripled its optional bet in the fund SPDR Gold Trust in the last quarter. Soros Fund Management LLC bought 240,000 shares of SPDR at the same time, but sold almost all of the world's largest paper gold miner Barrick Gold Corp. For silver now also very favorable period. In particular, in recent years greatly increased the shares Hochschild Mining Plc silver producer after the publication of positive financial data. Investors have invested $ 5.4 billion in the SPDR Gold Shares in the three months to June. Now invest in gold ETF is almost at maximum, if you count from 2013. Exchange-traded assets, gold miners companies (14 largest players) have almost doubled in value in 2016.