| Why Are Gold ETFs Losing Their Allure? | |
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The Precious Metals Rout: Impact on Miners and ETFs (Continued from Prior Part) Declining ETF holdings
Gold’s trading price on Friday closed at $1,090.00. It hit a high of $1,093.00 and a low of $1,082.70. With declining gold prices, the most famous gold ETF, the SPDR Gold Shares ETF (GLD), has also lost its allure. It’s trading at lower volume. The fund’s last trading price was $104.39.
GLD has seen a year-to-date trading loss close to 8.06%. This loss is close to the fall we’ve seen in real gold holdings. The ETF’s holdings, in general, have fallen. The ETF’s current gold holdings declined to ~1,529 tonnes—the lowest mark they’ve seen in the past six years.
The declining demand for gold ETFs mostly relates to tumbling prices. Also, tentative rate hikes further affect gold, as it has no cash flows, unlike other interest-bearing assets. The chart below shows the ETF’s holdings since 2003.
Outlook remains bearish
As more and more investors turn bearish on gold, other precious metals have also seen a similar kind of disdain recently. Silver futures for September delivery on COMEX saw an up-day on Friday but lost 1.42% on a five-day trailing basis. Platinum futures for October delivery saw a down-day and closed at the mark of $956, down 0.89%. Palladium has been the most affected among precious metals. It has taken a hit close to 14.25% on a 30-day trailing basis.
Hedge funds have also taken a bet on declining gold prices for the first time on record. We’re currently seeing more bearish sentiment in the market for precious metals than bullish sentiment. The bearish sentiment has its roots in the stabilizing US economy. Rate hike speculation is likely fueling the bearish outlook.
Miners have suffered in the past few months. Mining companies like AngloGold Ashanti (AU), Agnico Eagle Mines (AEM), and Newcrest Mining (NCM) saw an up-day on August 6, 2015. The Global X Silver Miners ETF (SIL) lost close to 24.45% on a 30-day trailing basis, but it ended on a positive note on Friday, climbing 1.57%. AEM, NCM, and AU contribute significantly to the Market Vectors Gold Miners ETF (GDX).
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AngloGold Ashanti Ltd
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PRODUCTEUR |
CODE : AU |
ISIN : US0351282068 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
AngloGold est une société d’exploration minière d'or basée en Afrique Du Sud. AngloGold est productrice d'or, d'argent, de cuivre et de zinc au Bresil, au Canada, au Ghana, au Mali, en Australie, en Afrique Du Sud, en Argentine, en Guinee, en Namibie et en Tanzanie, en développement de projets de fer et d'or au Bresil, en Australie, en Afrique Du Sud, en Colombie et en Republique Democratique Du Congo, et détient divers projets d'exploration aux Philippines. Ses principaux projets en production sont CRIXÁS, MINERAÇÃO, SAO BENTO, ANGLOGOLD ASHANTI MINERAÇAO et CRIXAS MINE au Bresil, SUNRISE DAM GOLD MINE en Australie, NAVACHAB MINE et NAVACHAB en Namibie, YATELA, MORILA et SADIOLA au Mali, CERRO VANGUARDIA en Argentine, MPONENG (WESTERN DEEP NO. 1 SHAFT), TAUTONA (WESTERN DEEP NO.3 SHAFT), BAMBANANI, TAU LEKOA, MPONENG, SAVUKA, TAU TONA, GREAT NOLIGWA, KOPANANG et CRIPPLE CREEK & VICTOR (CRESSON MINE) en Afrique Du Sud, SIGUIRI en Guinee, TEBEREBIE, IDUAPRIEM, OBUASI et KUBI au Ghana, GEITA en Tanzanie et TROUT LAKE MINE et CALLINAN MINE au Canada, ses principaux projets en développement sont MOAB KHOTSONG en Afrique Du Sud, MINAS-RIO au Bresil, LA COLOSA et GRAMALOTE en Colombie, KIBALI (KILO-MOTO) en Republique Democratique Du Congo et TROPICANA en Australie et ses principaux projets en exploration sont HUALATAN et ER au Perou, MKURUMU en Tanzanie, 777 PROJECT et RIVARD au Canada, LOUBOUGOULA, GOODPASTER et ALAMOUTALA (SADIOLA II) au Mali, BAMBADJI au Senegal, MORRO VELHO au Bresil et SIANA aux Philippines. AngloGold est cotée aux Etats-Unis D'Amerique, en Australie et en Allemagne. Sa capitalisation boursière aujourd'hui est 11,7 milliards US$ (10,5 milliards €). La valeur de son action a atteint son plus bas niveau récent le 23 novembre 2018 à 10,00 US$, et son plus haut niveau récent le 06 septembre 2024 à 28,52 US$. AngloGold possède 409 109 984 actions en circulation. |