Tags: Deutsche | Bank | Gold | ETFs

Deutsche Bank: Gold ETFs Shine in US and Europe

Wednesday, 04 Aug 2010 02:00 PM

Christos Costandinides, ETF Strategist at Deutsche Bank, says he expects gold exchange traded products will continue to shine.

"Cash flows have continued to be strong across all three asset classes, equities, fixed income and commodities," Costandinides told the Financial Times.

"If we look at commodities, gold is the big story there, both in the United States and Europe,” Costandinides says, with gold comprising between 70 and 80 percent of commodities marketed in the exchange-traded space.

“If we see continued declines in the equity market or continued volatility, then we will see more pronounced flows into gold.”

Costandinides describes the increase in gold ETF sales as a “flight to safety.”

“In Europe, a lot of what caused volatility in the markets related to sovereign solvency concerns,” he says. “Gold came in and took a lot of the flows that fixed income would otherwise have taken.”

In the U.S., “we’ve seen continued strong sovereign income flows,” Costandinides says. “At the same time, gold also benefited.”

Gold ETFs in Europe number about 35, with three of them housing about 60 percent of gold for the region, Costandinides notes, while in the United States, one ETF product houses about 90 percent of gold.

Gold prices may advance on speculation that recent price declines will spur increased physical and investment demand, a Bloomberg survey found.

Gold rose above $1,200 an ounce in Europe on Wednesday as a swell of fund buying put the price on track for its sixth successive daily gain.

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Christos Costandinides, ETF Strategist at Deutsche Bank, says he expects gold exchange traded products will continue to shine. Cash flows have continued to be strong across all three asset classes, equities, fixed income and commodities, Costandinides told the Financial...
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2010-00-04
Wednesday, 04 Aug 2010 02:00 PM
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