Update On Gold ETFs - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

Update On Gold ETFs

blog | Published On by
Update On Gold ETFs
Source: bullionstreet.com Source: bullionstreet.com

It was a somewhat predictable development that once the gold price started to recover considerably to kick off October, the fates of exchange-traded products tied to gold would also get a lift. Naturally, these funds are created with the intent of tracking along with the gold price, so in that sense, it seems the gold ETFs have done exactly their job.

Let's take a closer look at how these exchange-traded funds have performed of late.

Bouncing From the Bottom

It appears that the near-term lows for the gold ETFs have come and passed. This naturally followed the multiyear lows that gold and silver set earlier in the summer.

As far as trend-followers jumping on and off the bandwagon are concerned, the gold ETF market remains the center of the action. Trading volumes for these products have surged since July. The SPDR Gold Trust (NYSEARCA:GLD), one of the most popular gold ETFs, has enjoyed its highest volumes over the last 6 weeks since January.

Source: ETFtrends.com Source: ETFtrends.com

Holdings in the Gold Trust jumped by the most in 9 months to close out last week, as GLD added 160,754 troy ounces (just over 5 metric tonnes) in net inflows to its bullion stockpile. This brings the total holdings of GLD past the 700 tonne mark, a fresh 3-month high.

October Breakout

gold-rallyGLD is not the only gold ETF that's been doing well of late. In fact, 6 of the top 10 performing exchange-traded products over the last month are gold or silver mining ETFs. Some of the noteworthy big gainers have been the Global X Silver Miners ETF (NYSEARCA:SIL), up 22.4% in October; the Market Vectors Gold Miners ETF (NYSEARCA:GDX), up 22.6%; the iShares MSCI Global Silver Miners ETF (NYSEARCA:SLVP) has gained 25.1%; and the First Trust ISE Global Platinum ETF (NYSEARCA:PLTM) has gained 25.3%. This is just to name a few—and the month is only two-thirds through.

The surge for ETFs should be taken with a grain of salt, however, when looking at the bullion market as a whole. While many investors use gold ETFs as a quick way to diversify into precious metals, there is still no replacement for holding physical gold.

 

The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.

About the Author

Everett Millman

Everett Millman

Analyst, Commodities and Finance
Managing Editor

Everett has been the head content writer and market analyst at Gainesville Coins since 2013. He has a background in History and is deeply interested in how gold and silver have historically fit into the financial system.

In addition to blogging, Everett's work has been featured in CoinWeek, Advisor Perspectives, Wealth Management, Activist Post, and has been referenced by the Washington Post.

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.