Making that dire outlook all the more ominous is the acute weakness in gold at a time when the yellow metal is should be encouraging investors to get involved. September is usually the best month of the year in which to be long gold as bullion has posted an average gain of 3% in the ninth month of the year over the past two decades. [September Should be Good to Gold]
Some traders are also living dangerously with silver ETFs, having poured $5.2 million into the ProShares Ultra Silver ETF (NYSEArca: AGQ) this quarter. As is seen with SLV and GLD, inflows to AGQ are almost dollar-for-dollar with the $4.8 million pulled from the ProShares UltraShort Silver (NYSEArca: ZSL) in the current quarter.
iShares Silver Trust
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.