Gold Demand from Investors Higher than During the Recession

The appetite for gold has been so strong through 2016 that it has exceeded the demand during the global financial crisis of 2008

Dan Kemp 25 November, 2016 | 10:34AM

What does the average investor do when someone with a temperament of Donald Trump gets into power? Do they flock to pro-growth equities, participate in a gold rush or stick to the fundamentals of value investing? Fund flow data will not show us the answer to this question for at least a few months yet, but we can begin to understand the bigger picture; especially as it relates to gold, fixed income and equities.

2016 has been a Gold Rush

Flows into gold have been nothing short of extraordinary through 2016, with a strong appetite for gold-related instruments adding to the speculative positioning of everyday investors. In fact, the appetite for gold has been so strong through 2016 that it has exceeded the demand during the global financial crisis of 2008.

Gold fund flows since the financial crisis

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About Author

Dan Kemp

Dan Kemp  is Chief Investment Officer, Morningstar Investment Management EMEA

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