| ETF Holdings of Precious Metals Are Strong and Steady | |
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Current Macro Factors Driving Gold and Silver Prices (Continued from Prior Part) Why should you track ETF holdings
According to World Gold Council data, ETFs accounted for close to 9.2% of all the gold investment demand in 1Q15. Outflows from ETFs led to a ~28% fall in gold prices in 2013. That’s the equivalent of selling 881 tons of gold. For this reason, investors should track any sustained or significant buying or selling activities by these ETFs.
ETF gold holdings rise
Though ETF gold holdings have been on a decline for the whole of June, led by the SPDR Gold Trust (GLD), they’ve remained steady. As of June 25, total known gold holdings were 1,598.7 tons, down from 1,599.5 tons as of June 1. After declining to 1,584.9 tons in mid-June, holdings started picking up again.
ETF silver holdings rise handsomely
Total silver holdings increased by nearly 10 million ounces in June. That’s a 1.6% rise to 625.3 million ounces as of June 25. Silver is having the best month since August 2013 as far as ETF inflows are concerned. The iShares Silver Trust (SLV) is the largest silver ETF.
Implications for investors
Since ETFs are large holders of physical gold and silver, any positive developments with them are felt across the market. As a result, when ETFs increase their holdings, it’s usually positive for precious metal prices and stocks including New Gold (NGD), B2Gold (BTG), Hecla Mining (HL), and Silver Wheaton (SLW). It’s also positive for the Market Vectors Gold Miners ETF (GDX). Silver Wheaton accounts for 4.8% of GDX’s holdings.
In the next part of this series, we’ll look at the physical-bullion buying trends in the US market.
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VanEck Vectors Global Alternative Energy ETF
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PRODUCER |
CODE : SLW.TO |
ISIN : CA8283361076 |
CUSIP : 828336107 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Silver Wheaton is based in Canada. Silver Wheaton produces silver, copper, gold, lead, silica and zinc in Canada, in Greece, in Mexico, in Peru, in Portugal and in Sweden, develops copper, gold, silver and zinc in Canada and in Chile, and holds various exploration projects in Argentina and in Portugal. Its main assets in production are ZINKGRUVAN in Sweden, KENO HILL (BELLEKENO) and MINTO MINE in Canada, SAN MARTIN - LUISMIN, PEÑASQUITO, LUISMIN and G-9 CAMPO MORADO in Mexico, YAULIYACU in Peru, STRATONI in Greece and NEVES-CORVO in Portugal, its main assets in development are PASCUA LAMA in Chile and KUTCHO CREEK in Canada and its main exploration properties are PROMOTORIO DURANGO and MONTOROS in Mexico, ALJUSTREL in Portugal and LOMA DE LA PLATA (NAVIDAD) in Argentina. Silver Wheaton is listed in Canada, in Germany and in United States of America. Its market capitalisation is 1.4 billions as of today (US$ 992.0 millions, € 902.8 millions). Its stock quote reached its lowest recent point on March 09, 2007 at 10.01, and its highest recent level on May 15, 2017 at 28.53. Silver Wheaton has 47 442 200 shares outstanding. |