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Gold ETFs See Exodus As Bullion Gets Hammered

By  +Follow June 28, 2013 12:20PM
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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
Wavepatterntraders
24 Dec 14 21:03:25
$GDX $GLD but they were mega bullish a few months ago, its a good sign nonetheless, but price action still rules
Wavepatterntraders
24 Dec 14 21:02:47
$GDX $GLD, whilst you cant trade from it, its pleasing to see that the prior bullish traders turned bearish are advocating crashes
Wavepatterntraders
24 Dec 14 21:01:36
$GDX $GLD its always a good sign for the bulls when the previous perna- bulls have now buckled and gone bearish, a great sign!
Jeremy Hill
24 Dec 14 20:38:36
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aznboi27
24 Dec 14 20:23:39
RT @JackDamn: Oil Follows Gold’s Crash Pattern http://t.co/k22ccVHsJb Charts & analysis by Tom McClellan. $USO $GLD http://t.co/fxz9sEydFT
Langan Stocks
24 Dec 14 20:17:07
$ALXN Investor Opinions Updated Wednesday, December 24, 2014 11:03:33 PM $GLD $DVN $CMG $WFM http://t.co/FxwU9zXah9
Fractal Long
24 Dec 14 19:42:42
Tell us what you think about this weeks $GLD alert. How are you trading it? http://t.co/bTqhuZKDGD
Fractals
24 Dec 14 19:21:06
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Jack Damn
24 Dec 14 18:50:34
Oil Follows Gold’s Crash Pattern http://t.co/k22ccVHsJb Charts & analysis by Tom McClellan. $USO $GLD http://t.co/fxz9sEydFT
BUZZ Just-In
24 Dec 14 18:42:26
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24 Dec 14 18:42:12
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Rosner Stocks
24 Dec 14 18:15:09
$GLD Percent Change Updated Wednesday, December 24, 2014 8:59:26 PM $CREE $DIS $WFM $EEM http://t.co/1MCBCtBM9m
Foghorn returns
24 Dec 14 18:07:39
Didn't I tell you all that $GLD contained lead bricks. http://t.co/wHs91Rdwj1 gold missing from Ukraine after swapped for lead bricks
TalkMarkets Recap
24 Dec 14 18:04:11
Market Commentary: Markets Can't Keep Session Highs, Close Mixed $SPX $VIX $INDU $GLD $NDX $SPY http://t.co/leXer0sRHs
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24 Dec 14 17:26:45
Tell us what you think about this weeks $GLD alert. How are you trading it? http://t.co/le0BAz2rTN
PolgarStocks
24 Dec 14 17:15:33
$GDXJ Opinions Updated Wednesday, December 24, 2014 8:07:41 PM $XLV $GLD $INTC $UNG http://t.co/1wi3M1Xzpe
SmallCaps
24 Dec 14 16:45:06
http://t.co/dAThDBsf73 <- A decent informational video from millionaire trader Tim Sykes $KNDI $SCO $BBRY $GLD $RUSS
Orenda Capital
24 Dec 14 16:37:02
SPDR Gold ETF $GLD fell 1.6% yesterday. Decline in oil prices has reduced the use of gold as an inflation hedge. #gold #commodities #oil
IH News Desk
24 Dec 14 16:31:11
$CSIQ Company Info Updated Wednesday, December 24, 2014 7:13:02 PM $CAT $KORS $AXP $GLD http://t.co/STvEWE7VWP
Maleah
24 Dec 14 16:24:23
http://t.co/6I8VNnRkyA <--- Amazing subscriber to Super_Trades - check out his profit chart!! $KNDI $SCO $BBRY $GLD $RUSS
JPY Fractalerts
24 Dec 14 16:22:20
New $GLD alerts have recently been posted. Check them out now. http://t.co/c2sua97w8f
PolgarStocks
24 Dec 14 16:15:27
$GLD Opinions Updated Wednesday, December 24, 2014 7:08:53 PM $CSCO $AET $APA $BAC http://t.co/cXRwT2yo1O
TalkMarkets
24 Dec 14 16:03:45
#Gold For Closing 2014 $GLD http://t.co/7NwXHu5VLf
Nelson G.
24 Dec 14 15:53:08
RT @TheGoldForecast: #MerryChristmas - We wish you prosperous trading next year! $Gold #gold $gld $slv $nugt $gdx + view free 2015 Outlook …
Guru_Bell
24 Dec 14 15:37:14
@OptionsHawk @Adiuro27 I challenge you on this $108 is the bottom $GLD More upside than downside
bigfoot UFO gold
24 Dec 14 15:31:55
RT @SWGoldReport: RT: @HAInvestor: Gold Is Second Best Performing Currency Of 2014 #gold $GLD http://t.co/UjgI6T9VBh
IH News Desk
24 Dec 14 15:30:40
$BIIB Stock Price Updated Wednesday, December 24, 2014 6:11:06 PM $GLD $IBB $OIL $IBM http://t.co/Ngb6ffnV9M
The Gold Forecast
24 Dec 14 15:16:28
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Rosner Stocks
24 Dec 14 15:11:04
$GLD Percent Change Updated Wednesday, December 24, 2014 5:59:26 PM $ABX $KRED $MYEC $AA http://t.co/5yshv04h23
Robert Mirshak
24 Dec 14 15:09:14
RT @SWGoldReport: RT: @HAInvestor: Gold Is Second Best Performing Currency Of 2014 #gold $GLD http://t.co/UjgI6T9VBh
The Gold Report
24 Dec 14 15:00:26
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Ray Buckner, IAR
24 Dec 14 14:44:12
Gold ETF's Assets See Big One-Day Drawdown - via @YahooFinance $GLD http://t.co/EHX2lztJ5p
THE END IS NEAR
24 Dec 14 14:44:02
“@SeekingAlpha: Saudi Arabia's Mental Paradigm Shift Confirms Triple-Digit Gold http://t.co/N7L1PL0vW9 $GDX $GLD” Ain't gonna happen!
Stephen Belcher
24 Dec 14 14:22:58
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Langan Stocks
24 Dec 14 14:10:08
$FNMA Percent Change Updated Wednesday, December 24, 2014 5:03:20 PM $GLD $ALK $AMGN $UCO http://t.co/5wbbF0Wzub
Brad Pehrson
24 Dec 14 13:27:40
Traders say this could be the big short for 2015 $spx $spy $iwm $dji $gld http://t.co/d0LKkeGayg
spenceitaliano
24 Dec 14 13:24:35
RT @TalkMarkets: US Mortgage Payments Will Be Cheaper Than Stamps In 30 Years $GLD $SLV http://t.co/nXg394KSBw
TalkMarkets
24 Dec 14 13:23:50
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Penny Stock Secret
24 Dec 14 13:01:34
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Nat Gas
24 Dec 14 13:01:16
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24 Dec 14 12:57:13
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Andreas Wolf
24 Dec 14 12:25:09
I still can't come up with a reason to allocate capital in gold. It serves no purpose anymore. We have other ways to hedge nowadays. $GLD
SmallCaps
24 Dec 14 12:23:17
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Fractal Long
24 Dec 14 12:16:05
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Stock Rocket
24 Dec 14 12:14:39
With Penny Stock Picks On $STTK & $RGMI, subscribers saw 671% Gains In One Month! Big Update: http://t.co/oKD4CATaFq $SPX $TNA $GLD
Carolyn B Miciano
24 Dec 14 12:13:51
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PolgarStocks
24 Dec 14 12:12:31
$FXI Filings Updated Wednesday, December 24, 2014 3:07:13 PM $GLD $YPF $SLB $LVGI http://t.co/S3LQIod2uJ
				
				
By  +Follow June 28, 2013 12:20PM
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