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The above chart (released by The World Gold Council, dated May 4, 2017) shows that Germany and the UK bought more gold ETFs than US based investors and hedge fund managers. The main cause was political uncertainty in the European region. The US was third on the chart. At the same time last year, it was the first. The positive view on gold is well supported by the risks associated with the global geopolitical situation and the consequent economic backdrop (the ongoing crisis in Syria, uncertainty about BRexit, slowing growth in China, friction between the West and Russia and, more recently, tension regarding North Korea’s nuclear program). Further, questions arise about the path of US growth and inflation.

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