From the world’s largest gold ETF, 397 million U.S. dollars in investor funds were again withdrawn last week.
Gold price recovers
The gold price recovered from the recent rather weak trading days. The fine ounce of gold on the spot market in Europe costed 1,847 U.S. dollars yesterday afternoon. That corresponded to 1,519 euros. In both cases, the gold price was about 1 percent above the previous day. In contrast, the silver price was up 2.3 percent at 24.38 U.S. dollars (20.04 euros).
Largest gold ETF
Last week, investors again withdrew capital from the world’s largest gold ETF, the SPDR Gold Shares (GLD). In the process, the ETF’s reported gold holdings fell 0.7 percent, or 8.46 tons, to 1,171.32 tons. Consequently, net outflows totaled $397.82 million. Each GLD share is officially backed by one-tenth of an ounce of gold.
SLV Silver Fund
The largest silver fund, iShares Silver Trust (SLV), also reported a decline in metal inventory. At last count, the inventory includes 17,044.09 tons. Thus, it was 8.67 tons less than the previous week. In this ETF, fund operators must deposit 1 ounce of silver in bullion form for each share in the security. The previous record stocks were reached in mid-November with 17,671 tons. By comparison, about 26,500 tons (about 855 million ounces in 2018) of silver are mined from the earth worldwide each year.
Both funds deliver physical precious metal only in exceptional cases, such as to major customers. In recent months, however, these exchange traded funds have been the preferred investment instrument of new U.S. investors to speculate with precious metal derivatives via modern platforms such as Robinhood, E-Trade or Public (Goldreporter reported). Their trend-oriented buying behavior has always influenced the gold price in the short term, most recently certainly in a negative sense.
Translated with www.DeepL.com/Translator