GPF research reveals institutional investors and wealth managers are optimistic about the price of gold and silver
- Sustained tension between the US and China, geopolitical risks and a growing threat of inflation will ensure gold and silver remain attractive to investors
- Majority of investors believe the growing trend for countries to use alternatives to the US Dollar to settle international transactions will see the importance of gold increase
New research (1) with institutional investors and wealth managers reveals the vast majority are optimistic about the price of gold and silver rising in 2021.
The study, from Global Palladium Fund (GPF), which recently listed four physically-backed metal Exchange Traded Commodities (ETCs) – including spot price of gold and silver ETCs – with the lowest charges in Europe, reveals that one in three (32%) professional investors expect the price of gold to rise by between 3% and 5% this year, and the same number expect it to increase by between 5% and 10%. Some 17% anticipate a rise of over 10%, and just 5% think the price of gold will fall.
The corresponding figures for the anticipated change in the price of silver this year are 25%, 25% and 8% respectively, but 16% of professional investors believe the precious metal’s value will fall. Much of this be off the back of a gold rally, but also from rising industrial demand for the metal.
The survey reveals that one of the main reasons why the price of gold is set to rise is that the US/China relationship is expected to remain challenging under the Biden administration, and this, along with several geopolitical risks and a growing threat of inflation, means 85% of institutional investors believe this will put upward pressure on the price of gold.
In addition to this, 40% of institutional investors strongly agree and 57% agree with the view that the importance of gold could increase as some countries look for alternative ways to the US Dollar to settle international trade. Gold could increasingly fulfil this role as it is seen by many as ‘apolitical’ money as it is not issued by any central bank. This too could have a positive impact on the price of gold.
Alexander Stoyanov, Chief Executive Officer of GPF said: “Our research reveals that many institutional investors and wealth managers have a positive outlook on both gold and silver this year. There is still much uncertainty in the world, and this leads to increased market volatility, which can make precious metals more appealing to investors as they look to diversify their portfolios.”
NTree International Ltd, a specialist in marketing, distribution and investor engagement, is leading the distribution and rollout of the products. NTree has set up a dedicated brand, Metal.Digital https://metal.digital as an education resource for professional investors with a focus on metals.
Timothy Harvey, Chief Executive Officer and Founder of NTree, said: “Over $50 billion of new funds was allocated to precious metals ETPs last year, which was more than double than in 2019. Our research shows many investors are optimistic about the price of gold and silver this year, so it is a very opportune time to launch new metal ETCs that have the lowest charges in the marketplace, a firm commitment to ensuring the metals are mined ethically, and the highest possible standards when it comes to security and transparency.”
Global Palladium Fund’s (GPF) new ETCs are listed on the Deutsche Börse and London Stock Exchange and have the lowest charges with total expense ratios (TER) ranging from 0.145% to 0.20%. Targeting Family Offices, wealth managers, institutional and other professional investors, the new physically-backed gold, silver, platinum and palladium ETCs will track the spot price of the respective metals they cover.
The ETCs have a strong focus on ESG. LBMA-approved metal will be sourced from producers and suppliers who support the Sustainable Development Goals of the UN 2030 Agenda and other global initiatives in sustainable development and responsible mining.
GPF is also the first to use Blockchain technology to record bar information into Distributed Ledger Technology, thereby providing an extra layer of security and proof of ownership to the Issuer. The use of Blockchain is in addition to the traditional recording processes used by the custodian.
Notes to editors:
(1) Global Palladium Fund commissioned the market research company Pureprofile to interview 100 professional investors – 50 institutional investors and 50 wealth managers – across the UK and Germany. The survey was conducted online in January 2021.
Good Delivery Rules’ set by LBMA, LPPM, and LME for precious and base metals are universally acknowledged as the de facto international standard for due to the strict criteria that apply to responsible mining operations and protection of human rights.
LBMA established the Responsible Gold Guidance for Good Delivery Refiners that follows the five-step framework due diligence of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals.
Global Palladium Fund
The Global Palladium Fund, set up by Norilsk Nickel in 2016, strives to advance the development of world-changing technologies in essential areas such as aerospace, electronics, and the automotive industries to help make the world a better place. In an industry first, GPF is enabling industrial consumers and investors access to a range of metals in a variety of formats, including the ETCs. GPF is proud to be supported by Norilsk Nickel. Its products are in high demand across the globe and it has operations in the Russian Far North, Finland and South Africa.
For more information, visit: www.gpf.global
Norilsk Nickel is the world’s largest producer of palladium, high-grade nickel and a major producer of platinum, copper, precious metals and rare earths.
NTree provides professional investors with an education and distribution service to access commodities and China through active and passive fund solutions including Exchange Traded Products. It will promote the GPF ETCs, providing investor education and insights into the role and importance of the metals as well as their place in portfolios (please visit www.ntree.co.uk for more details)
For Further information, please contact Clare Anderson
0044 7958 665883