Everyone knows that gold and silver have value, but few people understand their real value. Some people say that the current price of gold and silver is too high after rising 12 years. But is that true?
Sector ETFs that have reacted poorly to the no tapering news include regional bank and insurance funds, two sub-industries that had rallied as 10-year Treasury yields surged almost 41% from May 22 through Sept. 17.
Grant Williams, one of the most highly respected fund managers in Singapore and a perceptive analyst of the gold market said that custodians of the GLD ETF have refused to give people physical gold in exchange for the shares as investors are entitled too.
PureFunds has a simple strategy: Be first in the market with innovative exchange-traded funds. Andrew Chanin, PureFunds' co-founder and COO, describes the firm's ISE Junior Silver ETF and the factors that make a "leveraged play to the actual spot price of the metal."
Exchange-traded funds may not want gold, but Asian buyers certainly do. As the West shed gold holdings, emerging markets, particularly India and China, bought it up.
The metals markets have experienced a big trend shift this year. Here’s how the relationships among different contracts are evolving.
Last week the world’s largest gold-backed ETF posted its first gain, 0.4%, since last November. News of dumped gold-holdings courtesy of Paulson & Co, Soros et al have also provided further support.
Gold advanced in New York after the Federal Reserve said it will keep buying debt to stimulate the U.S. economy and holdings in the biggest exchange-traded fund backed by bullion held steady for a fourth day.
Respected investor and precious metals guru Jim Sinclair has again warned of a risk of a default on the COMEX and said that gold prices will rise to $3,500/oz and that gold at $50,000/oz is “not out of the question.”
The gold-backed ETP holdings appear to have stabilized at 1,986 metric tons although the holdings have dropped 646 metric tons this year. The ETP holdings rose 275 metric tons last year.