Gold holdings in exchange-traded products are growing at a slower pace than in 2004-2009 because some investors may be moving to physical bullion after initial purchases of an exchange-traded fund, according to Barclays Plc. Gold holdings in ETPs have increased 9.6 percent this year to a record 2,582.98 metric tons, data compiled by Bloomberg show. They rose 7.9 percent last year and 19 percent in 2010. Growth in gold ETP holdings has exceeded 35 percent from 2004 to 2009, the data show. The following are comments from Cengiz Belentepe, head of industrial and precious metals trading at Barclays. He spoke in an interview Oct. 10:
“The question is whether the pace of buying has slowed, or whether the people have become a bit more sophisticated in recognizing the costs and liabilities.