traderdannorcini.blogspot.com / By Dan Norcini / November 13, 2014
I would urge my readers to take some time perusing the contents of the WGC’s most recent report on supply and demand in the gold market. It is a most informative read.
I wanted to pull a short extract from their section on ETF’s as I found their analysis remarkably similar to mine when it comes to GLD for instance.
From their GOLD DEMAND TRENDS, page 6:
“ETF outflows were far smaller in scale than those in Q3 last year. As of end-September, ETF holdings have declined by a little under 84t, equivalent to just 12% of the outflows over the same period of 2013. This lends weight to our analysis – as laid out in previous research – that more tactical investors have largely exited and the remaining base of ETF positions are held as strategic investments.
There was, however, little during the quarter to encourage fresh investment in ETFs as investors kept their gaze locked on the US economic scenario. The prospect of US interest rates remaining low ‘for a considerable time’ and the widely-anticipated end to quantitative easing( QE) by the Federal Reserve eclipsed all other considerations. The soundness of gold’s underlying fundamentals was widely acknowledged, but in itself offered little fresh impetus to drive an increase in investor positions.”
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