“We still believe the market went through a fundamental shift and that a sustained rebound …is very unlikely,” VTB analyst Andrey Kryuchenkov said in the article.
Gold ETFs have seen outflows recently after the precious metal tallied 12 straight years of gains.
“I really do not think you can estimate the amount of money ‘safely parked’ in gold that can quickly head for the exit when people realize they have bought into the latest bubble,” Alan Miller at SCM Private said in a separate report. “When seemingly every taxi driver holds something, and today that thing seems to be a gold fund, it normally marks the top.”
ETF Global Insight, research firm, has estimated that retail investors, or individual investors, account for about 40% of the ETF market in the U.S. Boost ETP, institutional ETP provider, there is a total of 54 gold-backed ETPs trading, which holds 81 million ounces of gold, valued at about $130 billion as of the end of March. Currently, thousands of individual investors are taking losses from their gold investments, an asset class that was not accessible to the average investor, reports Chris Vellacott and Clare Hutchison for Reuters. [Gold ETFs Plunge and Part Ways with the S&P 500]
GLD has seen outflows of around $9.8 billion year-to-date. This is the third largest outflow on record since GLD started trading in 2004. Analysts claim gold ETFs have accounted for gold falling around 20% from 2011 highs. [Dull Gold Helps Inverse ETFs Shine]
SPDR Gold Shares
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own GLD.