“ETF holdings have in the past proved relatively resilient to price corrections,” according to Reuters. [Gold ETFs: Vicious Circle of Selling?]
“Who exactly has been liquidating, and why, we don’t know, but it has been spread across multiple funds, suggesting a reasonably broad-based exit of some investors from physically backed gold funds,” Credit Suisse analyst Tom Kendall said in the report.
“In the last few years you’ve seen more and more players with a shorter-term investment horizon playing the gold market through the ETFs,” added Bank of America-Merrill Lynch analyst Michael Widmer in the Reuters story. “A lot of the faster money has left, that’s for sure. (But) among longer-term investors, I’m not sure we’ve seen a massive readjustment of expectations.”
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
Full disclosure: Tom Lydon’s clients own GLD.