Investors allocate to oil and gold in January

Exchange-traded product (ETP) provider ETF Securities has reported over $1 billion of inflows into oil and gold-linked ETPs since January 1st, 2016.

ETF Securities attributed the inflows to investor uncertainty and the improved recent price of gold, as well as opportunistic investments in oil. ETF Securities head of research, James Butterfill, said: “Concerns over central bank policy effectiveness are bringing financial market stability worries to the fore. This comes amid heightened concerns for European Central Bank liquidity, the risk of a Brexit and uncertainty regarding US presidency candidates. Consequently investors are turning to gold as a core diversifier and a safe haven investment. Given the increasingly challenging investment and economic environment, we expect this trend to continue.”

The ETP provider added it had seen inflows of $345 million into its gold-linked ETPs on a single day – February 9th. Inflows into oil-linked ETPs were over $320 million.