Gold ETFs Look for More After Recent Rally

Some investors still need some convincing to revisit precious metals ETFs. Though GLD and silver equivalents, such as the iShares Silver Trust (NYSEArca: SLV) and the ETFS Physical Silver Shares (NYSEArca: SIVR), have been strong performers this month, particularly in the wake of Wednesday’s big moves to the upside, these ETFs have suffered outflows. [Silver Rally Catches Investors by Surprise]

Since the start of May, GLD has lost almost $422 million in assets while SLV and SIVR have lost $81 million combined.

“Clearly, one quarter of positive inflows does not signify the start of a new trend. Looking at the monthly data, strong inflows in January and February were partially reversed in March, before the positive trend resumed again in April. The majority of the inflows were directed towards US-listed ETFs, although products listed in Germany and the UK also benefited. Our analysis indicates that strategic investors remain invested, with a third of investors holding US-listed ETFs having held their positions for more than five years,” said the World Gold Council.

SPDR Gold Shares

 

Tom Lydon’s clients own shares of GLD. Todd Shriber owns shares of IAU.