SPDR Gold Shares (NYSEArca: GLD) has experienced outflows of nearly $13 billion this year as the metal’s sell-off has sent many investors fleeing from bullion-backed ETFs.
Overall holdings in gold exchange traded products has fallen by 13% so far in 2013 to 2,299 tons, according to Bloomberg.
The redemptions combined with gold’s price declined have shaved $36 billion in value from gold ETFs.
GLD is the largest gold ETF with 1,093 metric tons of gold and $50.2 billion in assets.
That is down from about 1,351 tons valued at $72.2 billion at the end of 2012.
The gold fund’s price is off about 15% year to date. [Gold ETFs Still Bleeding Assets Despite Price Rebound]
Next page: Paulson’s gold ETF stake
Hedge fund manager John Paulson has a large position in the gold ETF, according to the most recent regulatory filings, and is the only investor who has ever been allowed to visit the vault where GLD stores its gold.
Paulson on Wednesday told investors he is staying the course on gold although he expects more volatility in the short term, Reuters reports.
At the end of 2012, Paulson & Co. was the largest investor in GLD with a stake equal to 65.7 tons, Bloomberg reported.
Central banks owned 31,671 tons at the end of last year, or roughly 19% of all the precious metal ever mined, according to the story.
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.