Here’s what Nick’s research shows for gold over the past 20 years:
Silver ETFs tend to have more retail investors than gold ETFs. But you can clearly see that silver investments in both funds and depositories have soared to a new record level. Those levels are more than twice what they were during the financial crisis of 2008-09. And when the silver price recently fell, investors loaded up.
The message here is clear:
• Investors are bullish on gold and silver. Many are buying more metal. Despite the current flat price, nobody’s selling on a net basis.
This doesn’t say things couldn’t reverse. What it is saying is that today, institutional investors see a strong reason to not just hold on to their gold and silver but to buy more. The price drop has been their opportunity to pounce. It’s safe to assume that they believe the reasons for holding precious metals have not gone away.