SPDR Gold Shares (NYSEArca: GLD) and other gold ETFs have seen redemptions totaling hundreds of tons of physical metal, Lydon explained.
The disposal of over 600,000 pounds of gold so far this year “amazing” and “incredible,” he told Matt Nesto on Breakout.
He also discusses how gold ETF selling is likely driven by smaller, individual investors.
“Central banks maybe aren’t as concerned,” he lists as one reason why gold is down. “I think the average investor, with stocks and bonds doing so well, I think they say, ‘hey, I don’t need to hedge, so that gold position I had, I’m going to put that into stocks for now.'”
Watch the Breakout video to see the full interview.
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