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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
Interactive Brokers
28 Aug 14 08:06:41
#IBTI Technical Analysis - Waverly Advisors Summary Stats http://t.co/h2Jm7xslCW $SPY $IWM $QQQ $FXE $FXY $USO $GLD $TLT
28 Aug 14 08:06:15
Stocks Too Hot? The Case For Gold As A Liquid Alternative http://t.co/rQJrJ4lpcr $GLD $GDX $ANV $ABX http://t.co/8lA6FcpbH9
28 Aug 14 08:03:43
Shoulda bought gold on this #RussiainvadedUkraine dammit! $GLD green green and green
Large Void Bot
28 Aug 14 08:00:56
Top ETF Funds
28 Aug 14 08:00:44
The Relative Weakness in Gold Isn't Over Yet.. http://t.co/njd9FM8lpt $GLD #ETF #ETFs #Stocks
Top ETF Funds
28 Aug 14 08:00:27
Why gold isn’t safe for your portfolio when rates are rising.. http://t.co/RyxfaPZrIo $GLD #ETF #ETFs #Stocks
Top ETF Funds
28 Aug 14 08:00:10
Stock Market Today: Stocks Fall on Reports Russia Enters Ukraine.. http://t.co/RLLfhep1nO $GLD #ETF #ETFs #Stocks
Demian Pack
28 Aug 14 07:54:13
RT @FinanFlow: WEBINAR "Operando con sistemas de señales" comenzando en 10 minutos $STUDY $SPY #forex $CL_F $USO $GLD $GC_F $ES_F http://…
28 Aug 14 07:54:09
WEBINAR "Operando con sistemas de señales" comenzando en 10 minutos $STUDY $SPY #forex $CL_F $USO $GLD $GC_F $ES_F http://t.co/PqEkM7em8t
28 Aug 14 07:50:22
$TVIX Daily 2X VIX ST ETN Velocityshares (TVIX) 2.79 +0.11 (+4.10%) $QIHU $TSLA $GLD http://t.co/z3hBS8qVAn
28 Aug 14 07:48:33
$GLD did u miss last trade, what Jango says now? Not too late to join http://t.co/ACFV4r4Hej space limited second round.
EMini Futures
28 Aug 14 07:33:51
Like Our Facebook Page to Receive $ES_F #ES_F #CMEGROUP #Ninjatrader Trading Signals in Real Time: http://t.co/cFGkEoLApH $SPX $SPY $GLD
stephen q
28 Aug 14 07:30:40
#ECB and EUROPEAN #PPT sure stowalled #GOLD $GLD & #SILVER $SLV after 4am EST today they couldnt let Gold & Silver surge while equtiy fall
Kirk Lindstrom
28 Aug 14 07:28:16
Commented on: "U.S. Debt At 102% Of GDP Hits Another Record... Is It Time To Buy G... http://t.co/4OxGDbPoui $GLD $SPY $VTI $IAU
Carolyn B Miciano
28 Aug 14 07:26:55
How to backtest strategies http://t.co/ttmGhHF7L4 $GLD $SLV $TSLA
David Durand
28 Aug 14 07:24:22
$TNX Real interest rates falling still. Good for $GLD $TLT $TBT
28 Aug 14 07:22:57
$AA Alcoa Inc (AA) 16.66 -0.05 (-0.30%) $DUST $GLD $DUST http://t.co/RxGoQl3Qgm
Stock News Updates
28 Aug 14 07:22:33
$GLD: [video] What's wrong with gold? http://t.co/Hy4TGAmVhy http://t.co/FBqkvnuUOR
28 Aug 14 07:21:49
How the US elections will affect investment and trading: http://t.co/oiRCLhFzoT $ANF $RPRX $GLD $SLV
Open Outcrier
28 Aug 14 07:21:11
Gold and silver whack $GLD $SLV
28 Aug 14 07:20:51
RT @surinotes: $GLD in ABC Bullish Pattern, Entry: 124.83, Stop: 122.4, Targets: 128-130, 135-138 http://t.co/qXsVSScZ7r
28 Aug 14 07:19:35
$MACRO $MACRO $MACRO LONG $SPY $TQQQ $SMH AND SHORT $GLD *market participants remains 'Lost In Transition' #bullish http://t.co/LN3X5bVXGx
smtrader StockTrader
28 Aug 14 07:17:17
$GFI continues to move higher, leading the gold miners $GDXJ $GDX $GLD
Daryl Montgomery
28 Aug 14 07:15:19
RT @SharpsPixley: PM #Gold Fix Rate USD: 1,292.00 GBP: 779.25 EUR: 980.94 http://t.co/6NQwO8bseZ $GLD #silver
BUZZ Just-In
28 Aug 14 07:13:40
Transaction costs for trading $GLD with brokers, min: 0.03% max: 0.068% difference: 1x http://t.co/O6tDfvjm7L #spreadbetting
28 Aug 14 07:03:50
We are likely going to press & stalk add long for potential move up through Range Short into HOS FTU above $GC_F $GLD http://t.co/rBUasYVEWp
David Durand
28 Aug 14 07:02:20
Commented on StockTwits: $GLD That is our trading position. What I call our "long term gold as currency" positio... http://t.co/EgzmpB9Xm7
Day Traders Group
28 Aug 14 07:00:38
a lst of our positions this morning (now all closed) http://t.co/KUOUKIWf4j $AAPL $FB $TWTR $NFLX $HAL $GLD $USO $VXX
Jack Trader
28 Aug 14 07:00:22
$GLD Switzerland To Take Back Its Gold? http://t.co/0VsEwlSRSB
Mark Freeman
28 Aug 14 06:59:59
$GLD update: $GLD F*cking PIGS!!! Stop Manipulating GOLD. FED fighting the TREND every day. TREND is UP you morons!
28 Aug 14 06:57:40
Good positions on $GLD and $SLV right now http://t.co/KNqlYlAf7t Check it out peeps $FB $TWTR $LNKD $UVXY $ANF http://t.co/9PVM68kGKi
David Durand
28 Aug 14 06:55:52
$GLD adding another 25% to our prior 50% of max exp trading position.
28 Aug 14 06:54:49
$GLD in ABC Bullish Pattern, Entry: 124.83, Stop: 122.4, Targets: 128-130, 135-138 http://t.co/qXsVSScZ7r
28 Aug 14 06:53:48
Nice o/n pop into initial resistance. Needs to clear Range Short to move higher. $GC_F $GLD $STUDY http://t.co/p3KEE1s4sm
Emini Scalping
28 Aug 14 06:51:44
Like Our Facebook Page to Receive $ES_F #ES_F #CMEGROUP #Ninjatrader Trading Signals in Real Time: http://t.co/2B06GmwEMP $SPX $SPY $GLD
28 Aug 14 06:50:57
$SVFC China Wireless Comms (SVFC) 0.0016 unch (unch) $VIPS $GLD $RPRX http://t.co/S7mrq48sP6
Fractal Assets
28 Aug 14 06:48:26
What is the $GLD going to do next? Get real time alerts and analysis at http://t.co/HEd5TctqVq
28 Aug 14 06:46:11
RT @StockTwits: "@harmongreg: The Relative Weakness in Gold Aint Over Yet http://t.co/B4UgdJLYTU $SPY $GLD"
Interactive Brokers
28 Aug 14 06:44:24
#IBTI Technical Analysis - Waverly Advisors Summary Stats http://t.co/CWz6IQaNQl $SPY $TLT $IWM $QQQ $FXE $FXY $USO $GLD
BUZZ Just-In
28 Aug 14 06:43:39
Monitor your watchlist of assets for tweets- Top Commodities http://t.co/cMdLdO12DF $Brent $Silver $GLD
Markos Kaminis
28 Aug 14 06:42:49
GOLD - Why this Geopolitical Issue is Different (Part I) http://t.co/BJwa4QisbS #gold #goldprice $gld $GDX $SLV $NUGT $PHYS @GoldPriceNews
EMini Futures
28 Aug 14 06:31:59
Like Our Facebook Page to Receive $ES_F #ES_F #CMEGROUP #Ninjatrader Trading Signals in Real Time: http://t.co/cFGkEoLApH $SPX $SPY $GLD
28 Aug 14 06:31:16
RT @StockTwits: "@harmongreg: The Relative Weakness in Gold Aint Over Yet http://t.co/B4UgdJLYTU $SPY $GLD"
Mark Freeman
28 Aug 14 06:28:33
$GLD update: $GLD all the complaining...this has been happening every morning for 3 years...should be used to it by now
Market Updates
28 Aug 14 06:22:45
$GLD: 3 ETFs in Focus on Escalating Russia/Ukraine Tensions http://t.co/9Q3qhKCkaO http://t.co/75OMdsiDUI
Joe Attrux
28 Aug 14 06:20:23
RT @SeekingAlpha: Talking Gloom Amidst The Boom http://t.co/N81Lz8dfa6 $GLD $INDA $INDY $SPY
Nonko Trading
28 Aug 14 06:20:22
"@howardlindzon: "@StockTwits: "@harmongreg: The Relative Weakness in Gold Aint Over Yet http://t.co/KuG30O9Ko2 $SPY $GLD"""
Paul Antompietri
28 Aug 14 06:19:35
Crude ripping, bonds up, gold up. World is figuring out Putin's not going to stop until he has land bridge to Crimea. $USO $TLT $GLD
Seeking Alpha
28 Aug 14 06:19:11
Talking Gloom Amidst The Boom http://t.co/N81Lz8dfa6 $GLD $INDA $INDY $SPY
Investors Hangout
28 Aug 14 06:18:22
$PPH E.P.S. http://t.co/bpLSurZcSF Also See: $GPRO $SIRI $VXX $GLD ~
By  +Follow June 28, 2013 12:20PM



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