Gold demand is surging even as prices fall, and the largest gold exchange traded fund’s (ETF) increased holdings isn’t because of who you might think.

Retail investors are sharply increasing their demand for more gold bars and coins, as it has presented a safe place to keep their money during the market meltdowns. Last year, people bought 38 tons of gold coins in the third quarter alone; this year, that figure has rocketed to 61 tons, reports Dan Grech for Marketplace.

Meanwhile, institutional investors have been in control, selling heavily to offset retail buying and driving prices to new lows, reports Moming Zhou for MarketWatch.

Gold has experienced a net inflow of 232 tons, for the third quarter, compared to 150 tons in the same time one year ago. Gold holdings within ETFs is up 150 tons, with a peak in September after Lehman Brothers went bankrupt. There has been no slowdown in demand for gold since, not even when financial institutions fell out and had to sell their gold assets.

The rise in gold within ETFs has to be because the funds have made it so much easier and affordable for the retail investor to get into gold without having to find storage space. Gold is still below long-term trend lines, so according to out strategy at ETF Trends, we would not consider it. If you are interested in gold, keep an eye on it and be aware of the volatility involved.

• SPDR Gold Shares (GLD), down 12.3% year-to-date

• PowerShares DB Gold (DGL), down 14% year-to-date

Tags: DGL, GLD, Gold, Precious Metals