ETF Precious Metals Slip in May
Source: Reuters (6/7/11)
"ETF silver holdings witnessed their largest monthly outflow this year."
Holdings of silver in exchange traded funds witnessed their largest monthly outflow this year in May, while the price of silver fell by more than 25% in its biggest monthly fall in almost three years.
The silver products listed below saw outflows of more than 46 million ounces in May, worth around $1.720 billion at today's prices, bringing total holdings of the metal to their lowest level this year. Gold products saw outflows of 613,610.60 ounces last month, worth $10.31 billion at today's prices.
Most of the decline took place in the first half of the month, as the gold price fell in line with a sharp sell-off across the commodities complex.
Exchange traded funds, the most widely recognized type of ETP, back each security issued with physical stocks of a given commodity, creating a product they say is free from counterparty risk.