With fear and volatility gripping the financial world, many investors find it puzzling that gold—history’s most trusted safe-haven asset—has yet to rebound. Following the Fed’s taper pump-fake and Obama’s appointment of Janet Yellen as the next Federal Reserve Chairman, the ingredients for higher gold prices are in place. What seems to be missing is positive investor sentiment.
In past musings, we have examined the Eastern world’s burning love affair with bullion by pointing to record-setting imports and sky-high premiums for physical product. The story is a little different in the West, where widespread skepticism has kept a lid on gold.
Gold ETF Outflows Slowing: A Signal of Change in Investor Sentiment?
As most of you are probably aware, 2013 has not exactly been a year that gold funds will want to remember. SPDR Gold Shares (GLD) and the iShares Gold Trust (IAU) are both down nearly 25% for the year. Along with the rest of the gold ETF bunch, GLD and IAU have bled assets profusely. Both funds rank among the top-ten worst-performing ETFs in terms of outflows. With that said, there are positive signs that the worst of the selling may be behind us.