Institutional Investors are Powering a New Gold Rush

Major investment firms that manage vast amounts of money for college endowments, foundations, and the ultra-wealthy are helping to drive the bull rally in gold as they seek to reduce their clients’ exposure to volatile stocks by diversifying into the precious metal. But they lack an advantage that smaller investors have.

Get in on the gold rush.

We offer high-quality gold coins and bullion.

Institutional investors need the ability to rapidly trade tens of millions of dollars when they adjust to changing market conditions.  That makes it difficult for active money managers to purchase and store gold bullion for clients.  So, instead of owning actual gold, they are forced to purchase “paper gold”—indirect holdings for clients through exchange traded funds that own gold. 

Sales of gold-backed ETFs increased for the ninth consecutive month during August when they added the equivalent of $2.2 billion of gold. Year-to-date, global net inflows into gold ETFs have topped $51 billion. That has amounted to 938 metric tons of gold that the ETFs have had to buy, demand that has helped push gold to the $2,000-an-ounce level.  Total gold ETF holdings stand at a record $241 billion.

As investment vehicles, ETFs do not physically hold gold. Rather, gold bars are stored in vaults at various facilities around the globe where the bars are assigned to an ETF’s account.  

By contrast, individual investors can have direct ownership by taking delivery of their precious metals holdings or having them stored at a secure vault of their choice.

Get in on the gold rush.

We offer high-quality gold coins and bullion.