Rush of money into gold ETFs

The SPDR Gold Trust (GLD +0.6%) saw 7.5 tons of new gold on Monday and the gold ETF sector as a whole had 8.5 tons, the largest single-day inflows since October 2012, says Commerzbank.

"On balance, gold ETFs have now recorded only marginal net outflows since the start of the year, meaning that this bearish factor has disappeared."

Gold continues to hold gains in morning trade, +0.6% and near its high for the year at $1,349 per ounce.


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Comments (16)
  • Arion
    , contributor
    Comments (18) | Send Message
    Yeah, paper gold. I doubt they could lay their hands on that much real metal. If you don't hold don't own it.
    11 Mar 2014, 10:11 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13550) | Send Message
    Actually, these ETFs are a way to keep physical demand low and work against those investing in them since the underwriters are probably short and use the trading fees to hedge. The good news is physical demand remains robust as the price seems low.
    11 Mar 2014, 12:54 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
    So much for Goldman Sach's call for $1000 per ounce gold based upon their rosy scenario for the US economy!
    11 Mar 2014, 10:49 AM Reply Like
  • filipo
    , contributor
    Comments (4662) | Send Message
    So you dare doubt the rosy future the "experts" have predicted:
    (tongue in cheek)
    I think it won't be as bad as feared, but less brilliant as some make us beleive.
    There's still reason to own equities though, as the recent acquisition of Fyffe by Chiquita highlights: +25% in 1 day.
    And there's always ample reason to own gold.
    11 Mar 2014, 11:11 AM Reply Like
  • 6151621
    , contributor
    Comments (1172) | Send Message
    I still wonder why SA took down GLD from their window. I don't get it. It seems they don't want to compare stocks and gold when gold is up and stocks flat?
    11 Mar 2014, 11:53 AM Reply Like
  • mitrado
    , contributor
    Comments (2033) | Send Message
    I was wondering the same. Weird stuff.
    11 Mar 2014, 12:00 PM Reply Like
  • MEKhoury
    , contributor
    Comments (407) | Send Message
    I miss the 4th color
    11 Mar 2014, 12:14 PM Reply Like
  • Detail Investor
    , contributor
    Comments (175) | Send Message
    Yea what just happened? I was thinking about the same thing.
    11 Mar 2014, 12:32 PM Reply Like
  • jennypenny
    , contributor
    Comments (9) | Send Message
    I wish they would put it back.
    11 Mar 2014, 12:50 PM Reply Like
  • The Sociology of Finance
    , contributor
    Comments (955) | Send Message
    Agreed, only having equity indices makes the figure less informative.
    11 Mar 2014, 01:12 PM Reply Like
  • minecanary
    , contributor
    Comments (1360) | Send Message
    I believe they took it off because it was wildly inaccurate. The plots did not match the on-the-hour reports or the gold prices reflected on reputable websites. It was probably updated manually by the same editors who provide the Gold-going-to-700 and other children's (or FED) stories. I also think they take on different user profiles (Macro Investor, Fear and Greed Trader, etc) and try to just overwhelm any pro gold comments with sheer volume and hubris.
    11 Mar 2014, 01:48 PM Reply Like
  • Blues
    , contributor
    Comments (22) | Send Message
    The Gold Sector is a little like having your own little hobby - there are no reliable outside sources of information. You're on your own - and that's how I choose to play it. For the record I hold the stock of two companies - one an up and comer Argonaut - the second exploration - Temex.
    Gold dropping below 900 - I don't believe so - but hey - it's just a number - did I hear 700 last week?
    11 Mar 2014, 12:36 PM Reply Like
  • John Grandits
    , contributor
    Comments (659) | Send Message
    Albeit a bit impartial but Casey Research has some great newsletter services on gold miners, both explorers and small to large producers.
    11 Mar 2014, 12:48 PM Reply Like
  • T-time
    , contributor
    Comments (995) | Send Message
    Gold stocks actually have done well since first of January - but now slowing a bit. I am not a fan of the ETF, prefer the mining stocks like GG. If you want to go more conservative, GDX and GDXJ - both have given 20% since Jan 1, and both are still pretty undervalued.
    REgarding price, gold is holding actually quite well, maybe surprisingly well, considering the western world has lowered demand considerably (albeit the east has increased considerably), trading money out of ETFs and gold stocks for other growth plays and the fact the value of the USD remains strong. Furthermore, banks SEEM to be less interested (the truth is probably different). We know China is buying tons of it - and this might be helping it from hitting 700 dollars like the gold bears keep saying. So, the moral of the story is this - with this kind of holding pressure, if there is any "slippage" of USD strength or the stock market - expect gold to hit the ceiling at 1000 mph! I don't think it will take much - so be ready....!
    11 Mar 2014, 03:00 PM Reply Like
  • goldy1asb
    , contributor
    Comments (39) | Send Message
    When gold was just slightly above, its multi-year lows.
    11 Mar 2014, 08:58 PM Reply Like
  • Blues
    , contributor
    Comments (22) | Send Message


    Thanks for the suggestion on the newsletter!
    12 Mar 2014, 08:20 PM Reply Like
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