Gene Arensberg of Resource Investor reports that positive liquidity has returned to gold and silver exchange traded funds (ETFs). Over the past week more wealth has been entering the funds than leaving. Gold holdings for streetTracks Gold Shares(GLD), the largest gold ETF, increased 8.33 to 458.63 tonnes of gold bars held by a London custodian. During the week metal holdings for Barclay’s iShares Silver Trust (SLV) jumped 108.45 tonnes, worth $1.63 billion as of Friday.
As more bars are added to the ETFs, what does that mean for their performance? GLD is up 0.9% for the week and 2.2% for the year. SLV is up 2.4% for the week and 4.5% for the year.
Like GLD, SLV is classed by the SEC as a continuous offering ETF. It’s structure is designed to closely track the price of silver, and the vehicle only invests in silver metal and does not invest in futures, options, derivatives or any paper silver.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.