{"id":225624,"date":"2025-04-01T08:59:33","date_gmt":"2025-04-01T08:59:33","guid":{"rendered":"https:\/\/businesnewswire.com\/?p=98255"},"modified":"2025-04-01T08:59:33","modified_gmt":"2025-04-01T08:59:33","slug":"central-banks-are-stockpiling-gold-and-goly-etf-investors-are-raking-in-the-rewards","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2025\/04\/01\/central-banks-are-stockpiling-gold-and-goly-etf-investors-are-raking-in-the-rewards\/","title":{"rendered":"Central Banks Are Stockpiling Gold\u2014And GOLY ETF Investors Are Raking in the Rewards"},"content":{"rendered":"

\"bank\"<\/p>\n

Strategy Shares Gold Enhanced Yield ETF\u00a0(Ticker GOLY)\u00a0<\/a>has been surfing record highs, with Friday\u2019s gold futures price hitting $3,090.90 per ounce, sending the value of a 400 troy ounce solid gold bar to $1,236,360. The GOLY ETF is up 32.48% over the last 12 months as of March 30, 2025 while paying a 5% distribution yield monthly to investors.<\/p>\n

The world\u2019s largest central banks have been dumping US dollar denominated assets and taking the proceeds to buy gold as their reserve currency of choice since the United States weaponized the SWIFT banking system against Russia. The United States and EU seized 300 Billion dollars worth of Russian Central Bank Assets as punishment for invading Ukraine. This seizure sent shock waves through the central banks of Russia, China, Turkey, India, and Brazil as they no longer trust the United States to not weaponize the banking system against them in the same way that they did against Russia. The major central banks are now in a gold buying frenzy as they realize their gold reserves can\u2019t be seized like US dollar reserves can be. Persistent gold buying every month by the central banks is outstripping the supply coming from miners. The price of gold needs to keep going up to meet the demand of the global central banks.<\/p>\n

The yellow metal has forged meteoric gains over the past twelve months, emerging as the world\u2019s second-best-performing asset next to crypto. Its year-to-date gain edges out the megacap-loaded Nasdaq Composite (^IXIC<\/a>) \u2014 itself up a healthy 18%. (A proxy for the crypto market writ large, the Bitwise 10 Crypto Index Fund (BITW<\/a>), is up 28.9% this year.)<\/p>\n

According to BofA Global Research, gold funds just absorbed the largest inflows in four weeks, attracting $1.1 billion. Yet, the broader trend has actually seen $2.5 billion in\u00a0outflows\u00a0<\/em>year to date, suggesting that underlying strength is coming from outside traditional fund flows.<\/p>\n

Why the Surge in Gold Prices is Likely to Continue<\/strong><\/p>\n

Central banks \u2014 especially those of developing countries \u2014 have been buying the\u00a0barbarous relic<\/a>\u00a0at a record clip. According to the World Gold Council,\u00a0central banks have purchased 290 tonnes in the first quarter<\/a>\u00a0alone, beating out the prior Q1 record from 2023 and setting CBs on a path to record gold purchases in 2024 that are estimated to easily eclipse 1,000 tonnes.<\/p>\n

\"cold\"<\/p>\n

\u201cNot only is the long-standing trend in central bank gold buying firmly intact, it also continues to be dominated by banks from emerging markets,\u201d wrote the Gold Council.<\/p>\n

In that regard, Turkey tops the buy list this year with 30 tonnes purchased in the first quarter \u2014 lifting its gold reserves to 570 tonnes. China bought 27 tonnes in Q1, making it the 17th consecutive quarter of purchases and also bringing its holdings to 2,262 tonnes. Other notable purchasers include India, Kazakhstan, the Czech Republic, Oman, and Singapore.<\/p>\n

The central bank buying spree has solidified gold\u2019s status as a reserve asset. According to BofA, gold has now surpassed the euro to become the world\u2019s largest reserve asset second only to the US dollar, representing 16% of the reserve pool.<\/p>\n

The precious metal\u2019s performance can be attributed to its unique position as a real asset with one of the lowest correlations to stocks across asset classes, making it a safe haven from market swings and inflation.<\/p>\n

According to Tom Bruni, head of market research at StockTwits, in a\u00a0recent episode of Stocks in Translation<\/a>, \u201cWe\u2019re seeing gold being used as an uncertainty hedge.\u201d<\/p>\n

Bruni also emphasized gold\u2019s appeal to traders due to its price action. \u201cWith gold breaking out above its 2011 highs, it\u2019s drawing significant attention from trend followers and technical analysts alike.\u201d<\/p>\n

Investors looking for deep, liquid gold markets have a robust choice of futures markets, ETFs, and gold miner stocks and ETFs, which tend to be even more volatile than the underlying metal.<\/p>\n

\u201cThe volatility in gold prices has made it a prime trading vehicle, whether through gold ETFs or mining stocks,\u201d said Bruni.<\/p>\n

BofA separately highlighted how this latest gold rally isn\u2019t like the other advances this century, offering a tantalizing glimpse of future bullish potential.<\/p>\n

The bank noted this is the third major gold advance in two decades, yet \u201chouseholds have missed this rally.\u201d The first two rallies \u2014 from 2004 to 2011, and from 2015 to 2020 \u2014 attracted big fund flows into gold ETFs. But over the last year, gold bullion and gold miner ETFs have shed $6.4 billion in assets, according to Bloomberg data and Yahoo Finance calculations.<\/p>\n

But if last week\u2019s large gold\u00a0inflows<\/em>\u00a0were to gain momentum, that trend could signal a perfect storm of retail, institutional, and central bank gold buying is brewing.<\/p>\n

The GOLY ETF is a unique way to capitalize on central banks buying gold that not only tracks the price of gold but also pays a 5% annualized distribution from a portfolio of investment grade corporate bonds.<\/p>\n","protected":false},"excerpt":{"rendered":"

Strategy Shares Gold Enhanced Yield ETF\u00a0(Ticker GOLY)\u00a0has been surfing record highs, with Friday\u2019s gold futures price hitting $3,090.90 per ounce, sending the value of a 400 troy ounce solid gold bar to $1,236,360. The GOLY ETF is up 32.48% over the last 12 months as of March 30, 2025 while paying a 5% distribution yield… Continue Reading →<\/span><\/a><\/p>\n","protected":false},"author":344,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[374],"tags":[],"class_list":["post-225624","post","type-post","status-publish","format-standard","hentry","category-ipsnews"],"yoast_head":"\nCentral Banks Are Stockpiling Gold\u2014And GOLY ETF Investors Are Raking in the Rewards - Business<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ipsnews.net\/business\/2025\/04\/01\/central-banks-are-stockpiling-gold-and-goly-etf-investors-are-raking-in-the-rewards\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Central Banks Are Stockpiling Gold\u2014And GOLY ETF Investors Are Raking in the Rewards - Business\" \/>\n<meta property=\"og:description\" content=\"Strategy Shares Gold Enhanced Yield ETF\u00a0(Ticker GOLY)\u00a0has been surfing record highs, with Friday\u2019s gold futures price hitting $3,090.90 per ounce, sending the value of a 400 troy ounce solid gold bar to $1,236,360. 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