Tags: Birinyi | Inflation | Gold

Birinyi Group: Inflation to Drive Gold Even Higher

Wednesday, 07 Dec 2011 08:06 AM

Research from Birinyi Associates shows that retail and professional U.S. investors spent $3.6 billion on gold exchange-traded funds last month, quadruple the $813 million they spent in October — and double the $1.7 billion placed in the second biggest ETF category by inflows, which was investment grade corporate bonds.

“It is going to be a go-to asset once everyone digests that if Europe is to be saved, the ECB will have to directly or indirectly print money and the inflation trade will be all on once again,” Michael Block of Phoenix Partners Group told CNBC.

“I would be buying gold opportunistically.”

Market value for the SPDR Gold Trust exchange-traded fund (ETF) which has ballooned to $73 billion, making it the second-largest ETF behind only the SPDR S&P 500, according to Birinyi data.

However, while the SPDR Gold Trust is up more than 20 percent this year, the S&P 500 ETF hasn’t changed much. Over the past 10 years, the gold SPDR has soared 300 percent, while the SPDR S&P 500 is — again — little changed.

Despite these overall statistics, thestreet.com reports that gold prices were moving with the euro as investors initially stayed skittish after Standard & Poor's put 15 nations, including Germany, on credit watch negative as well as Europe's bailout fund, the European Financial Stability Fund.

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Research from Birinyi Associates shows that retail and professional U.S. investors spent $3.6 billion on gold exchange-traded funds last month, quadruple the $813 million they spent in October and double the $1.7 billion placed in the second biggest ETF category by...
Birinyi,Inflation,Gold
216
2011-06-07
Wednesday, 07 Dec 2011 08:06 AM
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