“With respect to ETFs, investors also slowed down their purchases in 2011. This was in part due to rebalancing and profit-taking but also because a large number of investors had gained exposure to gold through ETFs earlier (notably in 2009) than those accessing gold through gold bars and coins,” World Gold Council said.
“If 2008/2009 is a guide, then it is possible that both ETF and OTC demand growth will resume again in the next few quarters,” according to the report. “In fact, ETF demand in the latter half of 2011 made strong year-on-year gains, signaling keep opportunistic buying at lower prices.”
In terms of performance, gold ETFs are up about 10% so far in 2012.
SPDR Gold Shares (NYSEArca: GLD)
Full disclosure: Tom Lydon’s clients own GLD.