Assets in Gold ETPs Sink
May 1, 2013
As gold prices slid in April, so did exchange-traded products (ETPs) linked to them.
The holdings in gold ETPs sank by 7.1% in April to 2,275.84 tons. According to Bloomberg data, that was the lowest level since October 2011.
Investors yanked $10.23 billion from gold funds during the first quarter, according to data compiled by EPFR Global.
About half the holders of the SPDR Gold Trust (NYSEARCA:GLD), the world's largest precious metals backed ETP, are institutional investors.
The price of GLD has declined 11.18% in value since the beginning of the year.
Sales for gold coins by the U.S. mint jumped in April to its highest monthly total since December 2009.
Elsewhere, Russia and Kazakhstan increased gold reserves for a sixth consecutive month in March.
The International Monetary Fund estimates that central banks will buy as much as 550 tons in gold this year. Last year, banks added 534.6 tons, the most since 1964.