Posted by: tristar3research | April 23, 2009

Gold ETF Purchases Up 6X in Q1 Annualized over 2008

Gold purchases through ETFs are up six fold!! in Q1 (annualized) versus 2008. Nothing to see, move along…. Okay, somebody thinks that hyperinflation will be the outcome from the shameless money printing operations being conducted by the U.S., U.K., Japan and Switzerland? (The latter confounds me- they have a sound currency and a national surplus).

The U.S. Mint will let you know when we decide to restart operations..

The U.S. Mint will let you know when we decide to restart operations..

Gold-backed exchange-traded funds saw inflows of 456 tonnes worldwide in the first quarter of 2009, against a total 321 tonnes for the whole of the previous year, the World Gold Council said (to Reuters). Marcus Grubb, managing director of investment research and marketing at the WGC, said he expected investment as a proportion of total demand to reach a new high in the quarter. “You are seeing a shift in the dynamic of the gold market,” he said. “ETF investment is in its infancy, and so is gold investment,” he said. “Most allocations of gold are zero.” WGC Supply & Demand stats here.

But a really smart investor also loaded up on gold in Q1- Billionaire hedge fund manager John Paulson, noted DealBook:

Hey, I dont trust the fiat currencies!

Hey, I don't trust the fiat currencies, especially $s!

The billionaire hedge fund manager John Paulson is bullish on gold. His investment firm, Paulson & Company, bought an 11.3 percent stake in the South Africa-based gold mining company AngloGold Ashanti from Anglo American for $1.28 billion. Anglo American said Tuesday that the Paulson funds paid $32 a share for its stake in AngloGold. “We believe AngloGold Ashanti is one of the best-managed and undervalued of the major global gold-mining companies,” Mr. Paulson said in a statement given to Bloomberg News. “We look forward to the implementation of their global expansion strategy.” FT AlphaVille nails it.


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