Gold ETF outflows continue, but pace slows

Gold may on the move higher this year, but investors keep pulling money out of gold ETFs, with $562M of outflows YTD (through June 27), according to Bloomberg, including $1.34B exiting in Q2. "Many have failed to notice the fact that gold has shown a strong performance this year, and it seems that the 2013 slump is still fresh in people’s minds," says Pension Partners' Michael Gayed.

Yesterday, however, the amount of gold in ETFs increased by 229K ounces, mostly due to GLD inflows. It's the biggest one-day increase since May and largely offset all of June's outflows.

The outflows in 2014 don't compare to the stampede in 2013, says UBS, and it suggests the bulk of the selling is now in the rearview mirror.

Gold today is ahead 0.5% to $1,328 per ounce - a three-month high.


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Comments (4)
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
    What surely surprises the gold bears is that the outflows slowed to a trickle and did not match the stampede of last year. Remaining (GLD) holders are not intimidated by lower prices.


    229K ounces is over 7 tonnes. Not bad for one day.
    1 Jul 2014, 03:09 PM Reply Like
  • The Vet
    , contributor
    Comments (168) | Send Message
    "but investors keep pulling money out of gold ETFs" ?


    Surely you mean that the "Authorised Participants" (APs) keep raiding the GLD inventory in order to source real gold when their stocks are bare.


    The mechanism is simple. Gold prices are suppressed by paper gold short sales by the APs. GLD stock follows the spot price down and the APs buy that stock in order to redeem it for the real thing, gold, to fulfil their paper commitments for deliveries of real metal. The GLD inventory was simply used by the APs as immediately available reserves to use when the Chinese buyers who wanted delivery of actual gold wouldn't settle for American paper IOUs.
    1 Jul 2014, 04:47 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2087) | Send Message
    Methinks this paper world of ours is getting totally out of hand. Gold is not in the main thinking of the average man, but if you think it isn't a big deal, they why are people around the world dying for it. Vying for it, trading for it and so on and so forth?
    Gold is wanted no matter what the naysayers come up with on a daily basis.
    Gold reflects the world in general from a monetary and worry situation. It has always been and will always be in the minds of those in charge because they know it is the real thing babe.
    They don't want you to think so, but believe you me, it is where it is at. I can tell you for SURE, it is ONLY the PM's that have kept my net worth above where it was the day I retired, and mainly due to trading coins, and in and out of bullion.
    I am making over 30% on numismatics and bullion (and paying taxes on the gains too). My main stash is only making 11+% and another area making 16%+.
    You do it your way. I'm sticking with what is doing best.
    Stay away from the paper precious metals, ( the ETF's ) and get the real stuff.


    Capt. Brian
    The Lost Navigator.


    Four day coin show coming up. I have been stocking up and have wares to sell. Let's see what happens.


    Gold is good. (Silver too)
    1 Jul 2014, 05:34 PM Reply Like
  • rubber duck
    , contributor
    Comments (194) | Send Message
    Maybe people are realizing you're better off taking physical delivery instead of a paper ETF where you need a basket of 100k shares to start seeing any real gold.
    1 Jul 2014, 08:54 PM Reply Like
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