from Sprout Money:
As could be expected, the decreasing gold price has caused people to run away from gold investments and not only did the gold miners drop faster than expected, any decrease in the gold price usually also caused people to liquidate their holdings in the Exchange Traded Funds which are trying to provide an easy and liquid possibility for ‘the common man’ to invest in gold.
And indeed, the SPDR Gold Trust ETF (GLD) saw an outflow of almost 29 tonnes of gold (roughly 925,000 ounces) during the month of October. As of at the end of last month, the ETF only held 741 tonnes of gold (a little bit less than 24 million ounces) which is the lowest point in six years time. So even though the net long position in the gold futures is still positive, it looks like the smaller investors have spit out gold as an investment, and that’s exactly something we like to see when we are waiting for the ‘total capitulation’ phase.
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