ETF Investors Rushed Into Precious Metals Last Week

Posted by: : Paul EbelingPosted on: November 11, 2013 ETF Investors Rushed Into Precious Metals Last Week

ETF Investors Rushed Into Precious Metals Last Week


Investments in precious metal ETFs was strong last week as global economic uncertainties persisted.

Sovereign concerns in the European periphery showed no signs of diminishing and contagion appeared accelerating. Moody’s last week downgraded Ireland’s credit rating by 5 notches and warned that further reduction is possible. The rating agency also warned that it may lower ratings of Greece and Spain.

US Treasury yields rose, partly on better economic prospect and partly due to worries over the countries’ deficits outlook.

Gold retreated as yields rose, capital inflows into Gold ETF was strong.

Most gold ETFs recorded increases in holdings, resulting in net gains of +642.15-K oz, or +0.97%, last week.

The best performer was SPDR Gold Trust which gained +292.87-K oz, taking the YTD investment to 5.32-M oz and combined Gold holdings to 41.76-M oz.

SPDR Gold Trust is the world’s largest Gold ETF, representing over 60% market share.

The addition of +279.10-K oz brought total holdings of iShare Gold Trust to 3.75-M oz. YTD, the fund’s total investment amounted to 1.20-M oz.

Other funds showing gains included ZKB Physical Gold Fund, Gold Bullion Securities, ETFS Gold Trust and ETFS Precious Metals Basket Trust. The 2 ETFs recording redemptions during the week were ETFS (London) and New Gold Fund.

Investments in Silver ETFs accelerated and iShares Silver Trust, which recorded +31.78-M oz increase in holdings, contributed most of the gains.

All ETFs issued by ETF Securities rose last week with ETFS (London) adding +632.29-K oz, ETFS (Australia), climbing +17.52-K oz., the 3 NYSE-listed funds together gaining +9.52-M oz.

Since the beginning of the year, Silver investment reached 130.53-K oz, taking total holdings to 595.40-M oz.

A week of mixed performance in PGMs.

While holdings in Platinum ETFs rose 35.61-K oz, or +3.04%,to 1.21-M oz, redemption of -35.56-K oz was recorded in Palladium investments, taking total holdings to 2.19-M oz.

Decline in Palladium holdings was mainly due to liquidation of previous Long positions and a sharp rise last week.

Stay tuned…


Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

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