Will New Chinese ETPs Increase Gold Demand? - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

Will New Chinese ETPs Increase Gold Demand?

blog | Published On by
Will New Chinese ETPs Increase Gold Demand?


The news that the Chinese government has approved two gold-backed ETPs has people speculating on what it means for precious metals. Zhang Bingnan, the secretary general of the China Gold Association, says "Gold ETFs should help boost gold demand as they will make Chinese investments in the bullion much easier." Many Western analysts think that it will either have no effect, or will decrease physical gold demand. It seems counterintuitive to think that physical demand would drop, since the ETPs are backed by gold.

The best case scenario, which seems quite likely, is that these new investment products will capture some demand that was not taking part in traditional "buy and hold" physical demand, while also grabbing some urban physical demand. I think it is likely that it will add some to physical demand as shares grow, but will take a few years to rival SPDRs gold ETF.

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.