ETFs

A regulatory push to make complex securities easier to understand could change how banks disclose risks for exchange-traded notes for the first time since they began trading in 2006.
Commodity investments are heading for record outflows driven by withdrawals from gold exchange-traded funds as some investors lost faith in the traditional store of value, according to Barclays Plc.
Yesterday's rise of $15 per ounce in gold was erased Tuesday morning in Asia and London, as the U.S. dollar rose and world stock markets held flat overall.
Gold short positions are at multi-year highs, and if the Fed does not taper tomorrow we will likely see a large short covering rally going into the New Year as shorts close out positions and balance books at year end.
Top gold news over the weekend was from Zimbabwe that President Mugabe plans to ban the private sale of gold. Producers will be required to sell any mined gold through a state-owned company. This latest measure will not come as a shock to anyone who has followed the troubled nation’s economic progress.
Investors are dumping gold-backed exchange-traded products at the fastest pace since the securities were created a decade ago, mirroring the steepest price drop in 32 years.
It is unknown where the gold would come from to replenish these ETF holdings were there a sudden surge in demand in the West in the event of a new sovereign debt crisis or a Lehman Brothers style contagion event.
The gold price has fallen nearly 3% in the last two days, however it has recovered some ground this morning. Concerns over tapering continue to impact market sentiment. US retail sales data for November showed a climb of 0.7%, the most since June, which gave a boost to both the dollar and the tapering debate.
The price of wholesale gold held steady around $1,230 per ounce in London trade Monday morning, ticking upwards as European shares slipped but Asian stock markets closed higher after strong data from China.
If precious metals continue to fall on Monday and Tuesday, selling volume should spike as protective stops will be getting run and the individuals who are underwater with a large percentage of their portfolio in the precious metals sector could start getting margin calls.