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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
stockblaster14
31 Oct 14 20:38:35
SPDR Gold (GLD) 112.66 $GLD 3 Frightening ETFs to Watch After Halloween - ETF News And Commentary Zacks Equity http://t.co/i3IFdjXDSO
TalkMarkets
31 Oct 14 20:23:17
Fear Gap Closing $GLD $SPX http://t.co/6suEG6fiRf
John Miller
31 Oct 14 20:22:29
Commented on: "Markets Misreading Of Fed Statement Is Opportunity In Gold" http://t.co/hNMVljxfuB $GLD $IAU $SGOL $OUNZ
stockblaster14
31 Oct 14 19:57:31
SPDR Gold (GLD) 112.66 $GLD 3 Frightening ETFs to Watch After Halloween - ETF News And Commentary Zacks Equity http://t.co/FXaBZSkPqD
US Banking News
31 Oct 14 19:40:53
SPDR Gold Trust $ETF Director Purchases $30 in Stock $GLD http://t.co/x7vI8OCBmP
wininstocks2014
31 Oct 14 19:38:05
GLD 0.03 Stock Charts $GLD GoldON Resources Ltd. (CVE) Last Updated: 10/31/2014 21:38:06 GLD Stock Chart - 1 M http://t.co/uAPC1KGGdN
US Banking News
31 Oct 14 19:25:18
Insider Buying: SPDR Gold Trust $ETF Director Acquires 1,000 Shares of Stock $GLD http://t.co/KsNECkwKRc
Mark Freeman
31 Oct 14 19:23:29
$GLD update: $GLD Don't expect a 2008 style "V" shaped recovery in Miners.
Violeta
31 Oct 14 19:14:23
RT @markf1988_tw: $GLD update: The correlation btw Swiss Franc and $GLD is very high. The COT data suggests that $UUP will tank. http://t.…
TV_Trading Ideas
31 Oct 14 19:11:06
"A stock is never too high to buy $GLD http://t.co/rIG8YeLSwe
Edward Gofsky
31 Oct 14 19:02:44
"@DrCooper: $GDX $GDXJ $NUGT $DUST $JNUG $JDST The final capitulation week? http://t.co/fDaKQNKba0" #stocks $GLD
Edward Gofsky
31 Oct 14 18:50:58
#stocks $GLD $SLV $DUST #GoldStocks BNN - Watch TV Online | Any hope for Gold? Next 2 Weeks may tell us http://t.co/KoEUyX0NUD
Mark Freeman
31 Oct 14 18:25:08
$GLD update: The correlation btw Swiss Franc and $GLD is very high. The COT data suggests that $UUP will tank. http://t.co/gTvLMFKbx2
MJR
31 Oct 14 18:23:37
$GC_F $SLV $SI_F I've liked gold $GLD since 123, but repeatedly warned not to expect a rocket ride up . Slow grind higher is my scenario
Sophia Grene
31 Oct 14 18:21:03
RT @howardlindzon: Classic @kshioha: @ReformedBroker at abu dhabi airport $GLD http://t.co/qsSsvli76J”
Implosion1
31 Oct 14 18:19:03
RT @etfguide: HUCKSTER ALERT: PeterSchiff still #LongAndWrong about #gold $GLD $GDX
A Complacent Trader
31 Oct 14 18:14:06
.@kenr0966 @VolatilityIMPLD nah - it's complex -yes Japan obviously stepped up - the "tape" foretold this long ago - $GLD
A Complacent Trader
31 Oct 14 18:04:03
I met many amazing #traders on $TWTR LONG side $GLD trade - I have been SHORT-IT is only w/in @stocktwits disgusting culture "bugs" breed!
Abu Dhabi tweets
31 Oct 14 18:00:02
RT @SASchoenfeld: It's about $60 less per oz than last week @howardlindzon: Classic @kshioha: @ReformedBroker @AbuDhabi airport $GLD http:/…
TalkMarkets
31 Oct 14 17:52:54
#PreciousMetals Positioning: Nobody Seems To Be Blinking $GLD $SLV http://t.co/BEkHyTzKSn
kenr0966
31 Oct 14 17:51:17
RT @cometkarov: $GLD range -volume solid-China PMI Tonight $GLD PUTS IN siiiize - Why Be a TwiT, when you can be me!!! 😜🔫 Catch Ya LAter! @…
A Complacent Trader
31 Oct 14 17:45:15
RT @BuddySav: RT @cometkarov: $GLD ANATOMY OF A CRASH - PART ONE- CHAPTER TWO - GOLD BUG DISCRETION IS ADVISED http://t.co/4yQHwss8Fe Same …
A Complacent Trader
31 Oct 14 17:43:54
RT @RepublicGold: RT @cometkarov: China Opens $GLD Market to Foreigners Amid Price Ambition http://t.co/9vqeU5ABHp via @BloombergNews
Ben Silverberg
31 Oct 14 17:36:26
Leading market sectors lower Friday included: $GLD $GDX $GDXJ $SIL $RSX $USO $SLV $TLT.
Franck
31 Oct 14 17:34:05
RT @goldseek: #GOLD Fib supports at $1156.31. Next: $1,088.45. If $1,000 gold should fall, watch $891.33 $GDX $GDXJ $GLD http://t.co/a6x7O…
A Complacent Trader
31 Oct 14 17:27:16
#TBT on Friday $GC_F $GLD *posted my chart @stockTWITS -- @chicagosean protected #Racist TwiTs! - anyway *SpoT ON !! http://t.co/hAPEcVPPzs
Jersey Drew
31 Oct 14 17:19:22
"@howardlindzon: Classic @kshioha: @ReformedBroker at abu dhabi airport $GLD http://t.co/Ls5m8piz0Y”" @Arian_Alba
kenr0966
31 Oct 14 17:16:04
RT @PerforM84697233: Option Millionaires: uranium-pinto-beans: Not many thought #GOLD $GLD & miners $GDX http://t.co/w0ErOWcbC6
strader55
31 Oct 14 17:11:09
uranium-pinto-beans: Not many thought #GOLD $GLD & miners $GDX http://t.co/6RaFUZMWjP
Alicia Salgado
31 Oct 14 17:03:56
RT @PugTrader: $GLD draws a dramatic #PINKLINE downside rebound IMHO #NOHOPE for GOLD http://t.co/GPHc6foQi9
Matthew R.
31 Oct 14 17:00:31
RT @howardlindzon: Classic @kshioha: @ReformedBroker at abu dhabi airport $GLD http://t.co/qsSsvli76J”
Steven Schoenfeld
31 Oct 14 17:00:01
It's about $60 less per oz than last week @howardlindzon: Classic @kshioha: @ReformedBroker @AbuDhabi airport $GLD http://t.co/IAmhcRj7NE””
randall millard
31 Oct 14 16:59:04
RT @howardlindzon: Classic @kshioha: @ReformedBroker at abu dhabi airport $GLD http://t.co/qsSsvli76J”
Ron DeLegge
31 Oct 14 16:54:09
RT @etfguide: TRUE! "@SatoshiTrader: Be careful what you wish for...#bitcoin trading in lockstep with $gld for the last 3 months" http://t.…
Perfor Mance
31 Oct 14 16:53:03
Option Millionaires: uranium-pinto-beans: Not many thought #GOLD $GLD & miners $GDX http://t.co/w0ErOWcbC6
Colin Macleod
31 Oct 14 16:47:54
T3 Live Daily Recap: The Rip Your Face Off Rally http://t.co/NkuViCHxOL $SPY $GLD $UUP $OIH $APA $COP $BHI $AAPL $NFLX $GOOGL
UPBOptionMil
31 Oct 14 16:46:13
Not many thought #GOLD $GLD & miners $GDX $NEM would collapse this year hat tip to @OMillionaires http://t.co/45oNHZbELf #goldinpesoterms
Greg Wester
31 Oct 14 16:44:41
RT @howardlindzon: Classic @kshioha: @ReformedBroker at abu dhabi airport $GLD http://t.co/qsSsvli76J”
Paul Woodward
31 Oct 14 16:44:38
RT @etfguide: TRUE! "@SatoshiTrader: Be careful what you wish for...#bitcoin trading in lockstep with $gld for the last 3 months" http://t.…
Mark Yusko
31 Oct 14 16:42:22
RT @needgoodcharts: I hate $GLD but seriously for a 1 year+ period how the F#$% don't u want to buy $GDX or $NUGT here with technicals http…
Jeremy Hill
31 Oct 14 16:33:49
@howardlindzon @kshioha @ReformedBroker Did you know there is a a #gold ATM on 57th Street? Seriously there is. $GLD
Auto Binary option
31 Oct 14 16:33:10
RT @howardlindzon: Gold might be renamed gLOLd ...http://t.co/21N4VfolZu $gld
Jeremy Hill
31 Oct 14 16:32:34
RT @howardlindzon: Classic @kshioha: @ReformedBroker at abu dhabi airport $GLD http://t.co/qsSsvli76J”
howardlindzon
31 Oct 14 16:30:14
Classic @kshioha: @ReformedBroker at abu dhabi airport $GLD http://t.co/qsSsvli76J”
Futures Portal
31 Oct 14 16:28:39
RT @howardlindzon: Gold might be renamed gLOLd ...http://t.co/21N4VfolZu $gld
SureTrader
31 Oct 14 16:28:04
RT @Weeklyoptions: $GLD 112 C will be giving 100% gains + imho
howardlindzon
31 Oct 14 16:27:38
Gold might be renamed gLOLd ...http://t.co/21N4VfolZu $gld
MarketStream.TV
31 Oct 14 16:25:26
RT @TheOptionDon: Market Wrap 10/31/14 http://t.co/N2CM9Ehgio $aapl $googl $fb $twtr $lnkd $amzn $pcln $tsla $bidu $baba $gpro $nflx $spy …
BUZZ Just-In
31 Oct 14 16:17:41
Monitor your watchlist of assets for tweets- Top Commodities http://t.co/cMdLdO12DF $Brent $SLV $GLD
TheOptionDon
31 Oct 14 16:15:45
Market Wrap 10/31/14 http://t.co/N2CM9Ehgio $aapl $googl $fb $twtr $lnkd $amzn $pcln $tsla $bidu $baba $gpro $nflx $spy $tlt $gld $xauusd
				
				
By  +Follow June 28, 2013 12:20PM
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