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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
Langan Stocks
30 Jan 15 10:33:05
$GLD Stock Forum Updated Friday, January 30, 2015 1:03:35 PM $XLB $GDX $JNK $VSLR http://t.co/RqrKuQiDTZ
30 Jan 15 10:30:16
RT @Taarriqq: $GLD beauty, locking time, traders bot weekly 212.5 calls @ 25c, now @ 1.25$ 400% gains wow $NUGT
30 Jan 15 10:27:59
Confidently trade $GLD Gold http://t.co/oyBKdaBZdD
30 Jan 15 10:26:38
$GLD in Inv. H&S Pattern (5-Stars), Targets: $128+ http://t.co/F1nztWeBlr
30 Jan 15 10:21:57
$GLD beauty, locking time, traders bot weekly 212.5 calls @ 25c, now @ 1.25$ 400% gains wow $NUGT
30 Jan 15 10:20:17
$GLD looking for another leg here
30 Jan 15 10:14:52
RT @TraderRL23: YTD Etf flows: Money has been pouring out of $SPY and heading into $HEDJ $GLD >> http://t.co/Jpxfe6D10F
Lon Plasner
30 Jan 15 10:12:19
$gld up bigger percentage than $gdx don't see that often
Winborn Traders
30 Jan 15 10:11:59
Like Our Facebook Page to Receive $ES_F #ES_F #CMEGROUP #Ninjatrader Trading Signals in Real Time: http://t.co/KkQKTCc7Yt $SPX $SPY $GLD
Robert Lesnicki
30 Jan 15 10:05:07
YTD Etf flows: Money has been pouring out of $SPY and heading into $HEDJ $GLD >> http://t.co/Jpxfe6D10F
30 Jan 15 10:00:41
$$ Starter long position in #Gold $GLD; Apr calls.
Robert Lesnicki
30 Jan 15 10:00:03
Weekly ETF flows: Money goes into $HEDJ $GLD $HYG Money comes out of $SPY $XLF $BND >> http://t.co/ns8Zj5wYNz
Brian Lum
30 Jan 15 09:58:01
Precious metals tumble http://t.co/hkJMJukEEZ $GLD $SLV $AGQ $IAU
30 Jan 15 09:57:12
|::::| #Profit from Bear #Market #2015shift #Venus in #Hydra #Traders #Trading #Astrology #BIZodiac #HuffPost #FT $GLD $NUGT #gold...
30 Jan 15 09:56:56
RT: http://t.co/2ZfsDpostJ #webinar Watch this webinar if you trade weeklies http://t.co/HjAiMncX17 $GLD $SLV $TSLA
Carolyn B Miciano
30 Jan 15 09:55:14
Watch this webinar if you trade weeklies http://t.co/gtZSrqEINx $GLD $SLV $TSLA
30 Jan 15 09:53:13
#Gold Is #Money. #Dollars Are #Debt $GLD http://t.co/iWlBOVljsy
30 Jan 15 09:52:02
Good bounces in $GLD and miners today $RGLD leader + $GLD both finding support at 200d
30 Jan 15 09:50:02
$GLD - EMA 200 +trend line support. - https://t.co/gPFfmLzozV
30 Jan 15 09:48:40
errybody see that $GLD $GC reversal?
Bryant Clayton, CMT
30 Jan 15 09:47:53
#Gold Update. Please see previous posts on gold to see how this move has developed. Chart---> http://t.co/W8Mo1wSYxX $/GC $GLD
Emini Scalping
30 Jan 15 09:47:27
Like Our Facebook Page to Receive $ES_F #ES_F #CMEGROUP #Ninjatrader Trading Signals in Real Time: http://t.co/LMyfcLjRKH $SPX $SPY $GLD
TV_Trading Ideas
30 Jan 15 09:45:38
EMA 200 +trend line support. $GLD http://t.co/GihhzpnQt4
30 Jan 15 09:45:09
:|:::: #HowTo #MakeMoney #2015shift #Profit from #Bear #Market $GLD $NUGT #gold #Venus in #Hydra #Trading #Astrology #Entrepreneu...
Market Daily News
30 Jan 15 09:38:47
Possible US Dollar Peak Should Be A Catalyst For Gold - http://t.co/aIwOW82lJV $GLD $USDX
Winborn Traders
30 Jan 15 09:37:44
Like Our Facebook Page to Receive $ES_F #ES_F #CMEGROUP #Ninjatrader Trading Signals in Real Time: http://t.co/EiWZAaUDi0 $SPX $SPY $GLD
30 Jan 15 09:35:43
A Time To Cheer Or A Time To Cry | Seeking Alpha http://t.co/yT9jIDTPHb via @salphatrending #Troika #Greece #Spain #Russia #Putin #Euro $GLD
Nigam Arora
30 Jan 15 09:31:57
Otto Max Investments
30 Jan 15 09:31:37
Out of $GLD, $NUGT, $RCL shorts & $OIH (earlier). Mostly cash.
Winborn Traders
30 Jan 15 09:25:58
Like Our Facebook Page to Receive $ES_F #ES_F #CMEGROUP #Ninjatrader Trading Signals in Real Time: http://t.co/cw3qJRhMIN $SPX $SPY $GLD
Jeff Focker
30 Jan 15 09:22:57
Conflicting signals everywhere - $tlt $gld up strong while tech $qqq is strong as well. Something's gotta give
Bay Lounge
30 Jan 15 09:15:26
Lake Shore Gold To Benefit From 144 Gap And Shaky Financial Markets Article: http://t.co/YwGYLZw8Hq $GLD #INVESTING #BELLLETSTALK #FOMC
Seeking Alpha
30 Jan 15 09:06:46
More Euro-Tragedy http://t.co/Q0Q0NPBhti $FXE $UUP $GLD
30 Jan 15 09:06:25
also filled $GLD 121 put lottos
30 Jan 15 09:01:19
RT @Taarriqq: $GLD BOOM off our support level, 5 min chart, watch green arrow-day trade only $NUGT $GDX http://t.co/zXBNpmIVzF
30 Jan 15 09:00:28
RT @nyinvesting: Investors say you shouldn't buy #gold because it doesn't have a yield, then they buy bonds with NEGATIVE yields. HUH? $gld
30 Jan 15 09:00:11
#SENTISHIFTUP $GLD $RMTI $QQQ $NUGT $IBM $DUST $BIDU $AUXL $QUAD $FEYE #sentiquant 20150130 12:00:07:279
30 Jan 15 08:59:39
$VXX $TLT $GLD at trendline resistance i think we see a push into $SPY $QQQ $IWM $AMZN $GOOGL into the close
30 Jan 15 08:58:45
RT @DTradingAcademy: What will happen to $GLD and $SLV in 2015 http://t.co/zlPU9bzFTI $FB $TWTR $LNKD http://t.co/wqF9ETfOcO
Easy Now
30 Jan 15 08:57:37
RT @DougKass: Nice rebound in gold this morning. Added to GLD at 120.60 yesterday. $GLD
abhishek m r
30 Jan 15 08:56:15
Commented on StockTwits: $GC_F $XAUUSD $GLD Bang on target 1278, Fresh support @ 1270 below 1275 target active @ 1288 http://t.co/h7IQBotouv
Scott Smith
30 Jan 15 08:55:21
$GDX (#gold metal #stocks ) Solid move off support (20 day average) $NUGT $JNUG $GLD $GOLD $SLV $SLW $GDXJ $GC_F http://t.co/nbvGPmCKvU
Mark Freeman
30 Jan 15 08:54:55
$GLD update: $GLD Nice GDP number....in the red....I said 1285 yesterday...let's see if my guess is right...recovery my a$$, sheep will
Mark Freeman
30 Jan 15 08:54:54
$GLD update: $GLD very toppy here intra-day...
30 Jan 15 08:54:18
$GLD BOOM off our support level, 5 min chart, watch green arrow-day trade only $NUGT $GDX http://t.co/zXBNpmIVzF
Ricardo Espinosa
30 Jan 15 08:51:38
Out of $AMZN 350 calls, half at 1.80, other at 2.00, in at 1.00. Good day, combined with $GLD, still long half of the 120 calls from yday.
Liam Garrity-Rokous
30 Jan 15 08:44:49
I'm moving back to bullish on $GDX today. We saw a nice swing low in $GLD, $GDX, and $GDXJ today. I'm going lo... http://t.co/cY8gtGSt2H
Jason Olive
30 Jan 15 08:43:42
RT @SeekingAlpha: A Time To Cheer Or A Time To Cry http://t.co/EXltrdLVqI $AAPL #APPLE $BIIB $DIA $GLD $IBB $QQQ $SLV $SPY $USO
30 Jan 15 08:42:11
EMini Futures
30 Jan 15 08:41:11
Like Our Facebook Page to Receive $ES_F #ES_F #CMEGROUP #Ninjatrader Trading Signals in Real Time: http://t.co/JkGSMIzkEd $SPX $SPY $GLD
By  +Follow June 28, 2013 12:20PM



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