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Gold ETFs See Exodus As Bullion Gets Hammered

By  +Follow June 28, 2013 12:20PM
Tickers Mentioned:

It would be an understatement to say that gold, as a commodity, has had a rough year.

The precious metal began its decline as a result of the tremendous gains for equities that ramped up significantly in 2103. With the apparent unyielding support of Federal Reserve spending, investors herded into stocks under the impression that the more risky asset class was going to be significantly less risky for the near to mid-term, obviating the need for the safe haven of gold.

Gold then took another shellacking at the tail end of the Cyprus bank bailout negotiations, in reaction to rumors that the island-nation’s central bank would consider selling off its reserves of yellow metal in order to meet the stipulations of the European Union’s bailout package. Investors feared that this could set a precedent for Europe’s numerous ailing banks, effectively eviscerating gold’s long-standing position as a safe place for their money during economic downturns.

And now, gold is getting battered in the wake of Ben Bernanke’s statements last week that the Fed was considering an end for stimulus spending as early as next year, despite the fact that numerous Reserve officials emerged this week to take the rougher edges off of what the Chairman said during a press conference subsequent to the FOMC meeting.

The current predicament has been dutifully reflected in the increasingly fashionable world of Exchange Traded Funds. The popular SPDR Gold Shares ETF (GLD) that tracks the price of physical gold as closely as possible has watched nearly 30 percent of its price ebb away since the beginning of the year from around $160 per share in January to Friday’s price of $118.59. GLD has not experienced this much duress since the fund was created nearly ten years ago.

Much the same can be said of the iShares Gold Trust ETF (IAU), that is now trading for under $12 after starting off the year at around $16, a nearly 30 percent price-drop. In fact, all of the unleveraged gold ETFs are down around 25 percent or more so far this year: the Physical Swiss Gold Shares ETF (SGOL) is down 28.5 percent, the Power Shares Deutsche Bank gold ETF is down 29.4 percent, and the UBS E-Tracs CMCI Gold Total Return ETF is off 29.10 percent.

Leveraged Gold ETF products are faring even worse, with the double-leveraged (DGP) down nearly 44 percent and the triple-leveraged (UGLD) down over 60 percent.

The price of bullion itself has sold-off to an unexpected and almost shocking extent, dipping below $1,200 briefly during trading on Friday, when under $1,300 would have been more or less an offensive suggestion just a couple months ago.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for gld
Colin Macleod
2 Sep 14 16:31:31
T3 Live Daily Recap Video: September 2, 2014 http://t.co/eo4ovoEYYS $SPX $TWTR $FB $TSLA $AAPL $GOOGL $BIDU $TBT $GLD
Stock News Updates
2 Sep 14 16:22:28
$GLD: Russia Not Declaring All Gold Reserves To IMF? [SPDR Gold Trust (ETF ... http://t.co/U4cpUlLqI2 http://t.co/KUabQq38nn
2 Sep 14 16:16:39
#Gold #ETF #GLD $GLD GLD - last: $121.65 @ 4:00pm EST 9/2/2014
Steven Schoenfeld
2 Sep 14 16:11:04
RT @ETFtrends: #Gold ETF Holdings Fall as Traders Pare Long Bets http://t.co/7wfeC0Md1g #ETFs #bullion #metals #silver $GLD $IAU $SLV $SIVR
ETF Trends
2 Sep 14 16:10:03
#Gold ETF Holdings Fall as Traders Pare Long Bets http://t.co/7wfeC0Md1g #ETFs #bullion #metals #silver $GLD $IAU $SLV $SIVR
Steven Schoenfeld
2 Sep 14 16:06:37
RT @TomLydon: #Gold ETF Holdings Fall as Traders Pare Long Bets http://t.co/JUTtDvTKif #ETFs #bullion #metals #silver $GLD $IAU $SLV $SIVR
2 Sep 14 16:05:39
RT @TomLydon: #Gold ETF Holdings Fall as Traders Pare Long Bets http://t.co/JUTtDvTKif #ETFs #bullion #metals #silver $GLD $IAU $SLV $SIVR
Tom Lydon
2 Sep 14 16:05:03
#Gold ETF Holdings Fall as Traders Pare Long Bets http://t.co/JUTtDvTKif #ETFs #bullion #metals #silver $GLD $IAU $SLV $SIVR
Freemode Magic
2 Sep 14 16:00:30
RT @AdrianBonsai: #NorthAmericaBonsaiAssociation #Gold $GLD #FunTimesKE http://t.co/pQVaFOxupK
Top ETF Funds
2 Sep 14 15:58:09
Take a Chance on S&P 500, Since Weak Volume Can Still Work.. http://t.co/pwp9iWAAUB $GLD #ETF #ETFs #Stocks
Pulsar Investments
2 Sep 14 15:57:56
A late comeback from the long weekend... Stocks are in normal sideways but treasuries $TLT, gold $GLD $GDX and oil $USO all break down!
Top ETF Funds
2 Sep 14 15:57:53
Today's Thorns, Roses and All Time Highs in the Markets..... http://t.co/o4LiOhzShx $GLD #ETF #ETFs #Stocks
2 Sep 14 15:50:56
RT @HFTAlert: Dark Pools have been consistent sellers of $GLD for weeks and weeks. http://t.co/0GzdcuxTll
BUZZ Just-In
2 Sep 14 15:47:55
Why access a ticker when you could acesss a group of tickers- Top Commodities http://t.co/cMdLdO12DF $Crude $Silver $GLD
O T P i c k s . com
2 Sep 14 15:45:09
http://t.co/oHSUax81PW greenehugh: Pre-market. Algos hit $GLD running 907 trades in: http://t.co/1BdMgn6ZWM http://t.co/oHSUax81PW
Matrix Ventures.
2 Sep 14 15:41:48
@YahooFinance Not a good day for $GLD, hopefully it will rebound by the end of the week.
Mark Freeman
2 Sep 14 15:39:57
$GLD update: $GLD Very suspicious sell off in gold. We know the FED does not like it when gold rallies. Just saying....
2 Sep 14 15:39:42
RT @ChartingStock $GLD Support $121.43 $121.18 $120.57 $119.94..Resistance $122.08 Gap=$123.86 $124.22 $124.82 Manage Risk $GOLD
2 Sep 14 15:39:23
RT @ChartingStock: $GLD Support $121.43 $121.18 $120.57 $119.94..Resistance $122.08 Gap=$123.86 $124.22 $124.82 Manage Risk-More @GLDTrader…
2 Sep 14 15:35:03
$GLD Support $121.43 $121.18 $120.57 $119.94..Resistance $122.08 Gap=$123.86 $124.22 $124.82 Manage Risk-More @GLDTrader $GOLD $GDX
Wts on Tv
2 Sep 14 15:29:59
RT @AdrianBonsai: #NorthAmericaBonsaiAssociation #Gold $GLD #FunTimesKE http://t.co/pQVaFOxupK
Stock Market Monitor
2 Sep 14 15:22:57
$GLD: Gold ETFs Lose Predictive Power http://t.co/Er1JivhykE http://t.co/2ZFD4a15V7
Fractal Futures
2 Sep 14 15:20:58
Tell us what you think about this weeks $GLD alert. How are you trading it? http://t.co/WoBqmNQFd1
ETF Trends
2 Sep 14 15:10:25
September Can be Kind to #Gold ETFs http://t.co/bm0Lc7s8ZG #ETF #bullion #metals $GLD $SGOL $IAU
2 Sep 14 15:10:00
$Gold $GC $GLD $XAUUSD trading at a critical level #trading #investing #buysell #market #forex http://t.co/dHGHx74chh
USO Fractalerts
2 Sep 14 15:07:01
Tell us what you think about this weeks $GLD alert. How are you trading it? http://t.co/tLEAV7PdMK
Tom Lydon
2 Sep 14 15:05:18
September Can be Kind to #Gold ETFs http://t.co/VPqjiiZOB9 #ETF #bullion #metals $GLD $SGOL $IAU
laurena retimi
2 Sep 14 15:03:34
RT @RedDogT3: Here is a link to today's video recap and look ahead $spy $spx $qqq $aapl $tsla $fb $twtr $arwr $ms $bac $gld http://t.co/Cj…
Shrewd InvestorsClub
2 Sep 14 15:01:15
RT @TradingPulse: medium-long-term positions: $ARGT $IFN $RSX $TWTR $SOCL $WFM $IRL $KOL and short $GLD given to subscribers in real time
2 Sep 14 15:00:04
2 Sep 14 14:54:25
$ZB_F a short "IF 138.18 is broken; targets 138.1 & 136.25. Bears need to retake 140.16 first. $GLD $DX_F http://t.co/M8BdeJdpkF
2 Sep 14 14:50:20
#MarketCommentary: #NASDAQ Shines And The #LargeCaps Flounder At The Close. $SPX $SPY $XLY $RUT $VIX $GLD http://t.co/gnHL4p62Vc
Max Small
2 Sep 14 14:45:34
RT @TechCharts: Time to keep a close eye on #GOLD. This could be the beginning of the directional move. $GLD #METALS http://t.co/szMcyzZZYH
2 Sep 14 14:43:56
$DX_F a long since 82.79 was broken today; targets 83.16 & 84.965. Bears need to retake 82.52 first $GLD $EURUSD http://t.co/IzGJbDx5Cb
Ani Anirudhan
2 Sep 14 14:43:50
Technical Trading: Bears Remain In Control Of Near Term Gold Trend| Kitco News http://t.co/W6TBQMFNUa $GLD $GC_F
2 Sep 14 14:42:14
#Gold Daily And #Silver Weekly Charts - Cap, Cap, Pounce $GLD $SLV http://t.co/VXATejpP3P
2 Sep 14 14:40:06
$GC_F a short "IF" 1263.1 is broken; targets 1262.1 & 1240.2. Bulls need to retake 1297.6 first $GLD $DX_F http://t.co/kpSbsWEgVH
Mark Freeman
2 Sep 14 14:36:20
$GLD update: $GLD ppl on this board are like the perma- bears in equities who call top every time S&P goes up. My guess, they are the same p
2 Sep 14 14:33:27
RT @RedDogT3: Here is a link to today's video recap and look ahead $spy $spx $qqq $aapl $tsla $fb $twtr $arwr $ms $bac $gld http://t.co/Cj…
BUZZ Just-In
2 Sep 14 14:32:51
You could be paying 5x higher spreads for Top Commodities http://t.co/Go3TYyR8in $Oil $Silver $GLD #spreadbetting #cfd
2 Sep 14 14:32:42
RT @theoptiondon: MARKET WRAP 9/2/14: http://t.co/j6zhCYafkx $AAPL $AMZN $TWTR $PCLN $BIDU $GOOGL $TSLA $FB $NFLX $LNKD $Z $FEYE $DDD $SPY …
2 Sep 14 14:25:07
Stock Market News
2 Sep 14 14:22:29
$GLD: [$$] Commodities Attractive As Stocks Smash Highs http://t.co/jiUqdAu7pC http://t.co/JFrSdTj6Lz
361 Capital
2 Sep 14 14:21:08
Thorns in the Market Today: $TLT $GLD $USO $OIH $XLE $XLU $WYNN $MPEL $HD $CONN http://t.co/m91KvMPbUW
2 Sep 14 14:11:42
$GLD Why Gold ETFs Will Soon Head Higher [SPDR Gold Trust (ETF), iShares Silver ...: Why Gold ETFs Will Soon ... http://t.co/7Avb6OyHSm
Scott Redler
2 Sep 14 14:08:01
Here is a link to today's video recap and look ahead $spy $spx $qqq $aapl $tsla $fb $twtr $arwr $ms $bac $gld http://t.co/CjqlqhGxJt
PWC Capital
2 Sep 14 14:07:09
Today was a bad day because of my gold position. But I will fight again tomorrow. $GLD
2 Sep 14 14:06:17
Market view updated for 3th September 2014 on http://t.co/xux20GAsrG $SPX $VIX $INDU $GLD $SLV So far following roadmap $$$$
Jeff Quiggle
2 Sep 14 13:57:35
2 Sep 14 13:52:23
Gold Seeker Closing Report: #Gold and #Silver Fall Nearly 2% http://t.co/wLdIHroeRT via @sharethis $GLD $SLV
By  +Follow June 28, 2013 12:20PM



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