The following is an excerpt from Luzi-Ann Javier | February 28, 2016 | Bloomberg.com |
Gold’s comeback is dominating 2016.
The precious metal is the year’s best-performing major asset. Its 15 percent gain is topping gauges of high-yield and investment grade bonds, Treasuries, all currencies and major stock indexes in developing and emerging countries.
Turmoil across global equity and currency markets has sparked demand for a haven. Speculators raised their net-long position in gold to the highest in a year. SPDR Gold Shares, the world’s largest bullion exchange-traded fund, attracted $4.5 billion of new money in 2016, the most among all U.S.-listed ETFs, according to Bloomberg data as of Feb. 25. It’s a turnaround from just a few months ago, when investors were selling the metal, sending prices in December to a five-year low.
“Gold has been the biggest story of this year,” said Dan Denbow, a portfolio manager at the USAA Precious Metals & Minerals Fund in San Antonio, which oversees $600 million. “Last summer, people were calling it a barbaric relic, and nobody could care less about gold. Now, it’s slowly generating more and more buying.”
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