Tag: gold etf

Gold ETF Holdings Surge… But Do They Actually Hold Gold?

| December 10, 2019 | Category: Investing
Gold ETF Holdings Surge… But Do They Actually Hold Gold?

Gold-linked exchange-traded products are growing in popularity with investors. Assets held by gold ETFs have grown 38% globally in 2019. In October, according to the World Gold Council, gold ETFs attracted $1.9 billion in net inflows to reach a new record high total gold holding of 2,900 tonnes – at least on paper. There is good reason to be skeptical of whether all these “gold” vehicles actually hold physical metal sufficient to back their market capitalizations on a 1:1 basis. Some of them very well might; others almost certainly don’t. In fact, many of these gold instruments hold futures contracts and other financial derivative products that merely “track” the gold […]

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Gold Investors Weekly Review – February 6th

Gold Investors Weekly Review – February 6th

In his weekly market review, Frank Holmes of the USFunds.com summarizes this week’s strengths, weaknesses, opportunities and threats in the gold market for gold investors. Gold closed the week at $1,233.92 down $49.85 per ounce (-3.88%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, rose 3.46%. The U.S. Trade-Weighted Dollar Index was 0.17% lower for the week.

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Gold vs Silver Investment Demand In 2014 – Spot The Difference

Gold vs Silver Investment Demand In 2014 – Spot The Difference

With declining prices, investment interest in the metals should be trending lower. That appears to be partly right. As the following charts show, interest in gold investments as evidenced by gold ETF’s (the most popular Western gold investment vehicles) has been trending lower along with the gold price. However, the opposite trend has been observed in silver. As the first of the two charts shows, silver demand as evidenced by silver ETF’s has been trending higher.

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Research Shows Positive Correlation Between Economic growth And Gold Demand

| September 25, 2014 | Category: Investing
Research Shows Positive Correlation Between Economic growth And Gold Demand

Current data on the world’s economies is mixed. There is both positive and negative news about developed and emerging markets but many investors – particularly in the US – are optimistic about a return to growth. Conventional wisdom says this will be bad news for gold. We believe the true picture is more complex. Gold benefits from both the growth and contraction phases of the business cycle, and our analysis, based on new third-party research, highlights the positive link between economic growth and consumer demand for gold.

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Gold – Contradictory Technical Indicators In Play

| September 7, 2014 | Category: Price
Gold – Contradictory Technical Indicators In Play

Thursday’s sell-off has created a huge bearish engulfing candle on the daily chart of gold, which is obviously not something the bulls would have liked to see. On top of this, gold has broken out of a long-term triangle pattern to the downside following Monday’s sell-off. Both of these development point to lower prices. However, the metal has now reached a key Fibonacci support zone between $1254 and $1262. This is also the location of a Bullish Gartley pattern. So, there is a possibility for a move higher from here.

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There Is No Direct Relationship Between Gold Price And ETF Stocks

There Is No Direct Relationship Between Gold Price And ETF Stocks

It does puzzle me why people think there should be a direct relationship between open interest or ETF stocks and price, given that they don’t have any problem understanding that the price of a company’s shares can go up and down while the number of shares on issues doesn’t change.

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Why Increased Western Gold Demand Could Lead To A Gold Supply Shortage

Why Increased Western Gold Demand Could Lead To A Gold Supply Shortage

From where will the gold ETF source their gold once the ETF demand turns higher again? It is clear that a supply shortage is a very likely outcome of renewed interest in gold ETF’s. We know that newly mined gold is limited compared to the existing above the ground gold, so it cannot meet Chinese and Western demand. In fact, above the ground gold IS the supply. So what happens if the appetite for gold in Asia remains strong, if those existing gold owners do not supply their gold to the market, and Western demand increases again?

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Fundamentals for Gold Unchanged as Economic Uncertainty Rises

Fundamentals for Gold Unchanged as Economic Uncertainty Rises

Although the mainstream financial media would have you believe otherwise, gold ETFs represent but one component of global demand. Nonetheless, the paper gold market, which also includes gold futures, remains highly influential in establishing the spot price and thus shaping public perception. Ultimately, the fundamentals will win out, and there is little reason to think that gold will not flourish when the consequences of burgeoning debt levels and currency debasement can no longer be kept at bay.

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Gold-ETF Selling Waning

| December 8, 2013 | Category: Investing
Gold-ETF Selling Waning

I suspect 2013’s trend of extreme gold-ETF selling is reversing. It is certainly dramatically slowing, with global gold-ETF outflows down 71% sequentially between this year’s second and third quarters. GLD’s alone plummeted by 3/4ths! The main reason is selling exhaustion and the number of remaining weak hands waning. But an additional important major reason is the incredibly-toppy US stock markets.

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Gold & Silver ETF’s: Inflows, Outflows & Fuzz

Gold & Silver ETF’s: Inflows, Outflows & Fuzz

Our focus is on the facts, not the noise. We did some quick checks on the figures and collected the following data. Our conclusion: a lot of focus on the GLD physical outflows, almost no attention has been given to the SLV inflows. The total holdings of all ETF’s combined barely show a c