ETF holdings increase
There are 14 known gold ETF holdings. The largest physical-gold-backed ETF is the SPDR Gold Trust (GLD). Global ETFs have bought close to 5.0 tons of gold since April 15. Gold ETF holdings were 1,623.3 tons as of April 27. However, there hasn’t been any significant change in overall holdings in the month of April. Gold holdings through April 27 increased by just 2 tons.
Monitoring gold ETF holdings
Outflows from ETFs led to a ~28% fall in gold prices in 2013. That’s the equivalent of selling a combined 881 tons of gold. As a result, it’s important for gold investors to monitor changes in ETF holdings.
ETFs hold substantial amounts of physical gold and silver. That’s why it’s important for investors to track any sustained or significant buying or selling activities by these ETFs.
Impact on precious metals
ETFs are large holders of physical gold, and any positive sentiment is felt across the market. Thus, buying by ETFs is positive for gold prices and stocks such as Goldcorp (GG), Barrick Gold (ABX), Newmont Mining (NEM), Eldorado Gold (EGO), Gold Fields (GFI), and Silver Wheaton (SLW). It’s also positive for the VanEck Vectors Gold Miners ETF (GDX). SLW makes up 4.8% of GDX’s holdings.