Precious metals are continuing to break out to new all time highs. And tens of billions of dollars are pouring into ETFs to get exposure to it.

What’s happening:

  • Precious metals ETFs have experienced approximately $93B USD in total inflows over the past year

By the numbers:‍

  • Gold ETFs captured roughly $82B USD of net new inflows
  • Approximately $10B USD of net new inflows went towards silver ETFs and $200M in inflows went towards platinum ETFs

Why it matters:‍

  • This is one of the largest years of total net new inflows for precious metals ETFs in history which has partly been fuelled by a large amount of buying demand from foreign investors in both Europe and Korea

Going deeper:‍

  • Multiple precious metals have been soaring to new all time highs lately, including gold, silver and platinum as well as gold and silver notably becoming a legal currency within the state of Texas
  • Gold and silver ETFs have also been coming into focus as a meaningful asset allocation for both countries and institutions, with Saudi Arabia’s central bank purchasing exposure to iShares Silver Trust (NYSE: SLV) and the Bank of Montreal purchasing more than half a billion dollars of SPDR Gold Shares (NYSE: GLD) through their asset management arm

The intrigue:‍

  • Gold backed stablecoins have also become a major source of billions of dollars of net new buying for physical gold bullion lately, with Tether and Paxos Trust Company seeing a massive uptick in adoption for tokenized gold

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