Top Gold ETF Holding Rises for First Time in 5 Weeks
Source: Mineweb, Lawrence Williams (8/24/09)
". . .it would seem that the SPDR ETF holding has remained remarkably strong overall. . ."
For the first half of the current year, holdings had shot up (from 780.23 tons at the beginning of January—a rise of 45.3% to the peak) due to uncertainty over the direction of the global economy and stock markets. But as confidence has returned to the markets along with a general perception that western economies and Japan are pulling out of recession, the appeal of gold as a safe haven has diminished. Since the beginning of June there has been a slow but steady slippage as some investors moved their holdings from gold into the general stock market or into other commodities, which were seen as performing better.
Even so, it would seem that the SPDR ETF holding has remained remarkably strong overall suggesting there is still considerable unease about the strength of the economy and even though the gold price has remained range bound between $930 and $960 in recent weeks. The latest small increase in the ETF holding is not yet significant in this respect, but if there is any continuation of increases, even if only small ones, it will indicate that many big investors are still hedging their bets and maintaining gold as a significant part of their investment portfolios despite the recent big rises in the Dow and the FTSE. Many will also be hanging onto ETF holdings as a dollar hedge.