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CHARTS: Silver, gold ETF investors diverge on price outlook

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While investors are pulling some of their investment out of physically gold-backed exchange traded funds, appetite for silver ETFs are hitting new highs.

SPDR Gold Shares (NYSEARCA: GLD) holdings, which account for more 45% of the global total, have seen inflows in 2016 of nearly 307 tonnes, but after peaking early July, 33.6 tonnes have been pulled out from the fund’s vaults since then, reducing the value of holdings by nearly $2.5 billion.

In contrast silver ETFs, just over the past month, have recorded over 9 million ounces or 280 tonnes of net inflows, bringing the total additions since the start of the year to a record 67 million ounces or 2,084 tonnes. Silver in ETF vaults have now grown to more than 21,000 tonnes or around 675 million ounces.

December gold on Friday in New York remained rangebound in lacklustre trading exchanging hands for $1,330 an ounce, holding onto gains of more than 25% or $270 an ounce this year. Gold’s high for the year came in July when the metal stopped just short of $1,380 an ounce.

Silver futures enjoyed better fortunes, jumping 2.7% to $19.70 an ounce during early trading adding to the more than 40% surge in price so far in 2016. The silver price also topped out in July at $21.25 an ounce.

Silver and gold ETF investors diverge on price outlook

Source: Capital Economics