ETF Gold Holdings Rise At The Fastest Pace Since 2009 As Central Banker Credibility Plunges

record gold holdingsTyler Durden:   As Eric Peters explained a few days ago, by pushing prices to overvaluation and reducing yields on every investment asset, central banks have destroyed investors ability to create a portfolio that can withstand even the slightest economic disruption.

Peters correctly describes it as “the most obvious disaster in finance.”

By reducing the yield on every investment asset, pushing prices to overvaluation, this policy also destroyed the ability of investors to build diversified portfolios capable of withstanding even the slightest economic disruption. Which ultimately results in reduced private sector risk-taking; the lifeblood of every economy. ”This is the most obvious disaster in finance. Central bankers don’t quite understand it.”

As a result of such practices Peters touched upon (ie: negative interest rate environment and concerns over a struggling global economy), two things have occurred.

First, gold has become one of the top performing assets YTD through April.

 

Secondly, total gold ETF holdings is seeing its fastest rise since 2009, with total holdings at a level not seen since 2013.

 

ETF holdings have risen along with spot prices.

 

As Bloomberg notes, China, Russia, and Kazakhstan have also been substantial and consistent buyers of gold.

The World Gold council estimates that nations are expected to buy 400 to 600 tons this year, compared with 566.3 tons in 2015.

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