Physical holdings in gold-related exchange traded products declined 2.1 metric tons to 1,715.7 tons on June 6, the lowest since October 2009. Most gold ETFs are backed by physical bullion stored in secured vaults, so each gold ETF share represent a fractional ownership of physical gold bullion. For instance, the recently launched Merk Gold Trust (NYSEArca: OUNZ) was created to provide investors with the opportunity to invest in gold through shares and be able to take delivery of the physical gold bullion in exchange for their shares. [Merk Launches Gold ETF That Provides Access to Physical Bullion]

Hedge funds and money managers are now the least bullish on gold since January, reports Brendan Conway for Barron’s. Large investors are net “long” 51,064, or half the level month-over month, according to CFTC data.

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Full disclosure: Tom Lydon’s clients own shares of GLD.