Tag - ETF

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Tuesday, January 31 2017

SPDR Launches New Gold-Backed ETF

Launched by the World Gold Council and State Steet Global Advisors (STT), the SPDR Long Dollar Gold Trust began trading today on the New York Stock Exchange Arca as the first U.S. listed gold-backed ETF that also hedges against a strong U.S. dollar.

Because gold is priced in U.S. currency, it becomes more expensive for foreign buyers when the dollar gains in value against other currencies. So as the U.S. dollar strengthens gold prices typically weaken.

The SPDR Long Dollar Gold Trust, which trades under the ticker GLDW, is designed to hedge against a strong U.S. dollar. Like its cousin, the SPDR Gold Trust, (GLD) it buys and holds the actual precious metal, not miners or other gold-related stocks. Yet the fund also uses a currency hedge strategy, going long on the dollar against a basket of foreign currencies on a nightly basis. The fund settles those positions every day, receiving payment in the form of gold bars.

Thus, if gold prices rise, investors profit. But they can benefit if the price of gold falls if the value of the dollar rises more. If gold price fall more than the dollar strengthens, then the fund loses value.

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Tuesday, January 24 2017

Gold ETF Lures Most Money Since ‘12 as Europe Frets on Trump

The four exchange-traded funds backed by the metal that have attracted the most money this year are all based in Western Europe. Frankfurt-listed Xetra-Gold tops the list, bringing in about $544 million last week, the biggest weekly inflow since at least 2012, according to data compiled by Bloomberg.

European investors are piling into gold, fueling the metal’s rebound, amid concern that Trump’s "America first" rhetoric and plans to scrap regional trade deals will impede global economic growth. Adding to the anxiety is the impact from Britain’s exit from the European Union and the growing popularity of anti-establishment politicians running in this year’s elections in Germany, France and the Netherlands.

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Wednesday, January 4 2017

Infographic: Gold ETF Mechanics

Gold-backed Exchange Traded Funds (ETFs) have grown strongly in scale and popularity over the last decade and their combined gold holdings now surpass all but the largest central bank gold reserve holdings. However, its important to understand the mechanics of these gold-backed ETF investment vehicles and to appreciate what they can and can't provide to gold investors.

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Thursday, December 1 2016

Gold ETF Mechanics

Exchange traded investment vehicles backed by physical gold refer to a group of trusts, funds, or other legal entities which hold gold bars with a custodian in a vault and which issue securities, units or other fractional ownership claims against that gold. These securities are pitched and marketed as an alternative to direct ownership of gold bullion and these products have seen significant expansion and evolution over the last 10-12 years.

There are a number of such products including Exchange Traded Funds (ETFs) and Exchange Traded Certificates (ETCs). These product classes now represent a relatively large footprint within the gold investing space. In addition to the very large and well-known SPDR Gold Trust (GLD) and iShares Gold Trust (IAU), there are several other similar products from providers such as ETF Securities, Source ETFs, and Xetra-Gold. At the time of writing, GLD held nearly 900 tonnes of gold, ETF Securities products held over 300 tonnes, iShares gold ETFs held approximately 275 tonnes of gold, and Xetra-Gold held 110 tonnes. Therefore, their combined gold holdings are now larger than all but the world’s largest central bank gold reserve holdings.

As popular as these securities are, it’s important to look at what exactly these products provide, and what they don’t provide when compared to ownership of segregated physical gold bars or gold coins.

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Saturday, November 19 2016

Silver ETF Investors Exit as Bear Market Looms on Rate Concerns

With traders pricing in near certainty that U.S. borrowing costs will rise next month, silver investors are heading for the exit.

This month through Thursday, almost $79 million was pulled from iShares Silver Trust, the largest exchange-traded fund backed by the metal. That would be the biggest monthly outflow since January. Holdings in all silver-backed ETF tracked by Bloomberg worldwide fell by 2.9 million ounces, set for the first monthly decline in 10 months.

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Tuesday, November 15 2016

$2 billion pulled from top gold ETF since Trump win

GLD's holdings hit a 2016 high early July, but nearly 50 tonnes have been pulled from the fund since then, reducing the value of holdings by $5.5 billion as the gold price retreats. Year to date, holdings are up still up 290 tonnes.

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Monday, October 10 2016

Gold ETPs continue to see gains in September

At the end of September, total holdings in physically-backed gold exchange-traded products stood at 2,335.6t (75.1 moz), representing a 38.1t month-on-month increase. In value terms, total holdings were worth US$99.3bn, 3% higher than at the end of August.

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Thursday, September 15 2016

Xetra-Gold exceeds 100 ton mark in gold holdings

The gold held in custody by Deutsche Börse Commodities GmbH for the purpose of physically backing the Xetra-Gold bond has risen to a new record high of 100.97 tons, an increase of approximately 70 per cent since the beginning of the year. For each Xetra-Gold bond, exactly one gram of gold is deposited in the central vaults for German securities in Frankfurt.

The recent rise is due especially to demand by institutional investors.

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Friday, September 9 2016

China’s Rising Gold ETF Market: A Hybrid

In 2013 we’ve witnessed the inception of the Chinese gold ETF market. At first demand for the gold ETFs was neglectable, as investors mostly preferred to buy the physical gold directly at the Shanghai Gold Exchange (SGE) or buy jewelry or investment bars through retail channels. This year, however, there has been a major shift in gold ETF demand in China.

The physical holdings of Chinese gold ETFs have surged five-fold from 7 tonnes at the end of January, to 35 tonnes at end of August. The Huaán Yifu Gold ETF, which was holding 23 tonnes in August, entered the global top 15 list.

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Monday, July 11 2016

SPDR Gold Trust gold bars at the Bank of England vaults

One of the most notable developments accompanying the gold price rally of 2016 has been the very large additions to the gold bar holdings of the major physically backed gold Exchange Traded Funds (ETFs). This is especially true of the SPDR Gold Trust (ticker GLD).

Central banks continue to report leased and swapped gold (gold receivables) as an asset on their balance sheets. This accounting fiction, which doesn’t follow any international accounting standards is a sleight of hand that allows the same gold to appear to be in two places at once. If gold bars that have been leased from central banks are being held in the SPDR Gold Trust, then these gold bars are being double-counted, and GLD shareholders should be made aware that the Trust is holding gold that has been ultimately borrowed from central banks. Using borrowed central bank in an ETF doesn’t put the ETF on the hook, since the ETF owns this gold. But it does mean that the bullion banks will need to return the equivalent borrowed gold to the lending central bank from other sources. Importantly though, this type of activity will overstate the amount of gold held by the combined official sector and ETF sector.

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Thursday, July 7 2016

Gold Assets Top 2,000 Tons as the Clamor for Havens Grows Louder

Global gold holdings topped 2,000 metric tons for the first time since July 2013 as the fallout from the U.K.’s vote to quit the European Union fuses with rising speculation that U.S. rates won’t rise any time soon to fire up a hunt for haven assets. Prices continued their ascent as miners rallied.

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Tuesday, July 5 2016

ETF Securities Reports Biggest One-Day Gold Inflow Since Financial Crisis

Demand for safe haven ETPs rise as uncertainty continues. Last week saw long gold, silver and long CHF recording strong inflows of US$433.5mn in total. Inflows into gold ETPs of US$263mn on Friday 1st July were at their highest since inception. Gold and the Swiss Franc have historically been sought after for their safe haven traits allowing investors to hedge portfolios from downside risks. We expect demand for haven assets to remain elevated as uncertainty surrounding the UK’s leadership contest and its formal exit from the EU block remain high. While the Bank of England is preparing for more monetary policy easing, Deutsche Bank and Santander failed the US Federal Reserve stress test again, keeping investors nervous.

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Thursday, June 16 2016

Going gaga for gold, silver ETFs

Global vault holdings have swelled to around 1,870 tonnes, the highest since December 2013 following net inflows of some 400 tonnes so far this year – a dramatic reversal of the trend during the last three years when a staggering 1,198 tonnes left funds.

Silver ETF investors are piling in too with total holdings now within a fraction of a percentage from all-time highs reached in 2014 above 20,000 tonnes. Physical gold ETF holdings hit a record record 2,632 tonnes at the end of 2012.

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Monday, March 7 2016

BlackRock Can Buy Gold Again: IAU Suspension Lifted After 300 Million New Shares Registered

The increase in shares brings the new eligible total far above the total Blackrock had available as of the gold price in 2011, and also above the last peak in IAU outstanding shares which peaked around 700 million.

This also means that there are no more structural limitations preventing IAU to buy as much gold as there is demand.

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Tuesday, January 12 2016

Investors on Gold ETF Buying Spree Amid Global Stock Rout

Investors embarked on the biggest three-day buying spree in gold-backed exchange traded funds for a year as bullion rallied at the start of 2016 amid a stock-market slump.

Holdings in ETFs climbed 19.6 metric tons in the three days through Monday to 1,477.7 tons, according to data compiled by Bloomberg, the largest increase since January 2015.

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Monday, September 15 2014

Gold ETFs outflows - 15th consecutive month in India

Once part of any true blue mutual fund portfolio in India, gold exchange traded funds appear to have fallen out of investors’ grace.

Gold ETFs saw outflows of $18 million (Rs 1.12 billion) for the 15th straight month, with AUM falling 1.44% to $1.2 billion (Rs 76 billion), with the underlying yellow metal dulling the sheen of owning paper gold for investors. The price of gold too fell 0.10% in August.

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Thursday, August 14 2014

China's fourth gold ETF raises about $50 million

Bosera Funds has raised $50 million for China's fourth gold backed exchange-traded fund that it aims to launch soon, at a time when investment demand for the precious metal has been sluggish in the world's biggest bullion consumer.

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