Are Investors Abandoning Gold ETFs?


"Redemptions. . .were more common [than inflows]."

Investor holdings in the by Goldessential monitored (pure-play) gold-backed exchange traded funds (ETFs) were seen decreasing 4.479 tons or 144,009 ounces (-0.27%) between January 18th and January 25th.

Of the 13 monitored gold ETFs, two announced an inflow over the reported period, whereas three reported redemptions. Eight indicated "no change."

Additionally, holdings in the Swiss Zuercher Kantonalbank's (ZKB) Physical Gold ETF were seen rising 8,743 ounces or 0.27 tons (+0.18 pct) in the week ending February 19th.

Focusing on the ETFs under our standard scope of analysis—hence excluding the infrequently updated ZKB—we see the largest increase both in absolute numbers, as well as percentages in the ETF Securities marketed ETFS Metal Securities Physical Gold trust (PHAU), where 20,548 ounces or 0.64 tons (+0.61%) flowed in over the reported interval.

A smaller inflow was seen in the ETF Securities marketed Gold Bullion Securities (GBS), where investors added 1,220 ounces or 0.04 tons (+0.03%).

Redemptions, however, were more common with several significant outflows being witnessed. The Canadian Claymore Gold Bullion ETF was seen losing 52,054 ounces or 1.62 tons (-7.45%) in the second week it traded as an ETF (the trust had finalized conversion from a closed ended fund into an ETF, as per February 16th).

The South-African NewGold (Absa) was simultaneously seeing holdings dropping 35,372 ounces or 1.10 tons (-2.09%), while the world's largest gold-backed ETF—the SPDR Gold Trust—saw redemptions of 78,351 ounces or 2.44 tons (-0.22%) of the yellow metal.

All other—non-discussed—monitored gold-ETFs reported no changes over the given interval.

On a rolling 4-week basis, the best performance (in percentages) was seen in the Swiss Gold Bullion Securities (SGBS) trust (ETF Securities), at +16.11%. In second place was the ETFS Metal Securities Physical Gold (PHAU) at +5.94%, followed by the Julius Baer Physical Gold ETF (+3.16%).

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