Despite gold’s resilience, its sharp declines in liquidity-driven sell-offs in recent years have raised questions over its value as disaster insurance.
The precious metal has also taken hits from recent increases in margin requirements to trade gold futures, which have taken away some of the speculative momentum.
Still, the price decline in September hasn’t shaken gold ETF investors, according to the report.
“Gold exchange traded product investors largely held their positions through the price correction, as did physical investors, indicating short-term futures investors were the main driver of the gold price sell-off in September,” ETF Securities noted.
In both the 2011 and 2008 corrections, ETF investors “largely held positions through the volatility, accumulating new positions following the initial sharp price decline.”
ETFS Physical Swiss Gold Shares
