Investors Running from Gold in Droves

Wayne Ellis

Investors Running from Gold in Droves (Bloomberg)

A recent Bloomberg survey found that investors are fleeing the barbarous relic as if it were… barbarous. Specifically, the holdings in the 14 largest exchange-traded products “ETPs” — which include exchange-traded funds (ETFs) and exchange-traded notes (ETNs) — were down 31 percent since the start of January. That dip represents $69.5 billion of ETP funds removed from gold investments. And it’s the first annual decrease in funds since they began getting tracked in 2003. Furthermore, the Bloomberg survey also found that investors were dumping their gold-backed trading products at the fastest pace since 1932. The reason?  According to Robin Bhar, an analyst with Societe Generale SA who’s been ranked by Bloomberg as the most-accurate precious-metals forecaster over the past eight quarters, “All the bullish factors we had pushing gold higher in the last 12 years are now going in reverse.” And she followed that quote up with this: “There will be more ETF selling in 2014 as the price goes lower.” Clearly, investors need to take a wait-and-see approach before getting back into gold.

share on:

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor