SPDR Gold ETF Set To Surge

TORONTO: The mighty GLD gold ETF’s bullion holdings have remained stable in 2014, an impressive feat. Last year they suffered an epic outlying record plummet as the Fed’s stock-market levitation sucked capital out of alternative investments. This year’s resiliency in the face of the ongoing stock-market melt-up almost certainly means the bottom is in. GLD’s holdings are set to surge as weaker stock markets entice traders back.

The SPDR Gold Shares gold ETF (GLD) is a juggernaut in the gold realm. Now approaching its tenth birthday, it has grown into the world’s flagship and massively-dominant gold ETF. GLD’s impact on the global gold price can be so supreme and overpowering at times that all precious-metals investors and speculators simply have to follow it. Last year was a key case in point, where GLD trading controlled gold.

According to the World Gold Council’s latest estimate, global gold demand fell 514.7 metric tons in 2013, or 11.2%. That was enough to blast gold down 27.9% to its worst annual performance in nearly a third of a century. The problem wasn’t traditional bar-and-coin investment, which soared 31.1% higher last year to 1780.6t. Gold plunged solely because global ETF demand plummeted to negative 879.8t in 2013.

Courtesy: Mineweb.com