ProShares Ultra Gold ETF Offers Investors a Strategic Opportunity to Gain Leveraged Gold Exposure amidst Ongoing Economic Uncertainty.

Gold has proven resilient in the market, up nearly 7% this year on continued central bank demand for the precious metal.

According to World Gold Council, in Q1 2023, world’s central banks bought a combined 228 tons of gold, the most ever seen in Q1 of any year on record. This follows up on what was already a record year in 2022, during which 1,136 tons of bullion worth some $70 billion were added to the banks’ reserves. Compared to the 450 tons bought during 2021, that represents a whopping 152% YoY increase! The continuing gold buying spree serves as a sort of foolproof protection against a possible precipitous decline of gold prices – for whatever unknown reason.

The 2023 combined Central Bank Gold Reserves Survey (CBGR) shows that nearly a quarter of central banks plan to increase their gold reserves this year alone. The decision was driven by a strategic rebalancing of gold holdings, increased purchases by domestic gold production, and looming concerns about financial market instability, especially inflation.

The pace and consistency at which central banks are now accumulating gold is unprecedented, given they’ve mostly been sellers throughout history. But the recent transactional trend illustrates a dramatic shift in the official bankers’ stance towards gold.

ProShares Ultra Gold ETF (UGL) seeks to deliver twice (2X or 200%) the return of the daily performance of the Bloomberg Gold Subindex. It charges 95 bps in fees a year and has amassed $200.2 million in its asset base. Average volume is also remarkably sound at about 131,000 shares per day.

Investors should understand, however, the risks associated with leveraged ETFs as a whole, one of such is being UGL, and consider diversification strategies. The ProShares Ultra Gold ETF continues to provide investors with strategic opportunities for leveraged exposure to gold.