Gold ETFs have helped drive investment demand for the metal.
“While we recognize the manifold appeal of gold ETFs and regard these investment vehicles as more than just a temporary fad, we doubt that gold ETFs can continue to attract the tremendous amount of inflows over the long run, like they have done so far in their brief history,” Park noted. “In fact, we’ve already seen net inflows into gold ETFs in 2010 (and so far in 2011) decline from their 2009 highs.”
Morningstar in an April 6 note cut its long-term gold price forecast to $1,100 an ounce to better reflect its view on the marginal cost of mine production.
SPDR Gold Shares
