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Source reports record demand for gold ETF in January

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ETF provider Source has reported record demand for its Source Physical Gold P-ETC (SGLD) product in January. 

The firm says that SGLD was the most actively traded gold Exchange Traded Commodity (ETC) in Europe so far this year and saw the largest inflows of any European gold ETC, attracting USD300 million of new assets in January. This compares to less than USD250 million of inflows over the whole of 2015. Total assets in the product now stand at more than USD2 billion.
 
SGLD saw USD8 million average daily turnover on-exchange in the past six months, with as much as USD97 million traded in a single day. On its most active day, the bid-offer spread for SGLD remained at just 3-4 basis points (bps).
 
Christopher Mellor at Source, says: “ETFs are a great barometer of market sentiment. Given the challenging start to 2016 and nervousness in the markets, there is clearly a renaissance in gold as a haven. We have seen record demand for our gold product, with investors attracted to its very low cost and high liquidity. Given the on-going concerns over the global economy, we expect demand to remain strong.”
 
The firm writes that, at 29 bps, SGLD has one of the lowest annual management fees of any gold ETC in Europe. Its low Total Expense Ratio and stable bid-offer spread of around 4 bps mean that it has the lowest total cost of ownership.

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