Gold Funds See Massive $3 Billion Weekly Inflows as Market Cap Hits Record $18.4 Trillion

As a seasoned crypto investor with a knack for spotting trends and a penchant for navigating turbulent market waters, I must admit, the current gold rush has caught my attention. I’ve seen bull markets come and go, but this influx of $3 billion into gold funds in a single week is nothing short of remarkable.


As an analyst, I observed a remarkable surge of investment into gold funds last week, amounting to approximately $3 billion. This influx represents the second-largest recorded inflow and is more than triple the average weekly investment in recent times. It appears that investors continue to show strong interest in the precious metal.

Gold prices have surged this year due to various factors, driving an impressive 33% increase as of now. This rally has made 2021 gold’s best year since 1979, based on the analysis by Kobeissi Letter, a well-known economics outlet. Consequently, the market value of gold reached a record-breaking $18.4 trillion.

Simultaneously, central banks have significantly increased their holdings of gold, causing the proportion of gold within overall currency reserves to rise to a staggering 12.1%. This is the highest it’s been in more than three decades.

The surge in gold purchases, driven by individual and institutional buyers alike, indicates a growing trust in gold as a secure investment option during periods of escalating economic unpredictability and heightening geopolitical stress.

NEW REPORT: Gold investment funds experienced approximately $3 billion in deposits last week, the second highest inflow ever recorded.

This amount is more than THRICE the usual weekly deposits seen recently.

These significant deposits have boosted gold prices, which have surged 33% this year and are poised for a record-breaking performance…

— The Kobeissi Letter (@KobeissiLetter) October 28, 2024

The significant increase in gold’s popularity is due to a variety of reasons, such as geopolitical turmoil, price rises, and uncertainties about the worldwide economy. These factors led central banks to purchase over 1,000 tonnes of gold during both 2022 and 2023.

Significantly, Societe Generale has moved all its commodity investments into gold, primarily due to heightened geopolitical concerns and a decline in the overall commodity market.

The bank based in France boosted its gold reserves to make up 7% of its entire investment mix, representing a substantial 40% jump from the previous quarter. This shift towards gold suggests an increasing faith in gold as a reliable safe-harbor asset during periods of market instability and uncertainty worldwide.

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2024-10-30 03:00