INVESTORS that held the proverbial golden egg — in other words, physical bullion — can’t quite claim a 50-fold return, but a 600%-plus return since 2007 is not too shabby.
Reinet, the investment vehicle controlled by the family of luxury brands titan Johann Rupert, has made a tidy return from its small €22m investment in SPDR Gold Shares. SPDR is the physically backed gold ETF into which Reinet invested way back in mid-2015.
At the end-March reporting period, Reinet reflected the value of its 230,000 SPDR shares at €86m. That’s a nearly fourfold increase in 11 years, making it a standout investment for the group. At last week’s share price Reinet’s shareholding had reduced slightly to €80m, still well ahead of the €61m valuation at the end of March 2025.
Rupert, who is executive chair of Reinet, said in commentary on the latest financial results last month, that over the long term, gold could provide a hedge against inflation and offer some protection against value changes in turbulent economic and political times.
That’s quite true and despite gold’s recent price retreat amid the Middle East crisis, gold ETF flows have remained positive year-to-date, amassing nearly $17bn. That’s according to World Gold Council data published on Thursday.
In May, however, the preference for cash over gold investment was evident. ETF inflows “slowed to a trickle”. Global gold ETF AUM declined 2% month-on-month to $604bn, while holdings eased to 4,121 tons, just shy of February’s record high, the council said.
“After April’s notable rebound in activity, global physically backed gold ETFs recorded modest outflows of $2bn, with Europe the only region to register inflows,” the council said.
Outflows were most marked in the US (-$1.1bn) where investors either stayed on the sidelines or went into tech ETFs. Inflation fears stemming from Middle East crisis could change the outlook on interest rates. Asia also recorded a $1.2bn outflow in May.
A version of this article first appeared in the Financial Mail.
