Financial Post
Bloomberg News
Sales of gold through exchange-traded products probably peaked in April and contributed to a record drop in commodity ETP assets in the second quarter, according to ETF Securities Ltd.
Sales of gold products accounted for 97 percent of a record $19 billion of net outflows from commodity ETPs in the second quarter, ETF Securities said in a report today. Commodity ETP assets fell to $127 billion from $186 billion at the end of March, with price declines accounting for two-thirds of the drop, it said.
Monthly net outflows from gold ETPs fell to $3.9 billion in June from $6 billion in May, Nicholas Brooks, ETF Securities’ head of research and investment strategy, said in an interview yesterday. They were $8.7 billion in April, when bullion plunged into bear market, he said. Gold dropped 23 percent in the second quarter, the most in data compiled by Bloomberg going back to 1920, as some investors lost faith in the traditional store of value and the U.S. Federal Reserve indicated it may start tapering its stimulus program.