S&P 500
+28.09 +1.34%
Dow Indu
+235.31 +1.31%
+60.85 +1.26%
Crude Oil
-0.23 -0.48%
+4.275 +0.32%
+0.002990 +0.27%
US Dollar
-0.214 -0.28%

GLD vs. SLV: Investors Favor Less Successful Gold

Aibek Burabayev - INO.com Contributor - Metals

Today I would like to share with you an analysis of precious metals ETFs. The goal of the study is to identify the correlation of price moves in both gold and silver with the demand for their ETF shares, represented by an appropriate precious metals holdings change. Below the chart you will read some interesting findings.

Chart 1. Gold, Silver and ETFs (Q/Q percent change): Silver Rises Without ETF Support

Gold, Silver and ETFs (Q/Q percent change): Silver Rises Without ETF Support
Chart by Aibek Burabayev, data source: spdrgoldshares.com; ishares.com

In the first quarter of the last year, we can see that investors were betting on a bottoming gold price with a 4% rise in SPDR Gold Trust (PACF:GLD) holdings despite the 1% fall in price. It’s interesting that at the same period, investors, on the contrary, cut their silver ETF holdings despite the rising silver price; it looks like they used the ‘sell silver on spike’ approach to gain on metals correlation. It’s amazing! But they were right shorting silver as it fell in three consecutive periods exceeding gold’s losing streak. [Continue reading]

INO Cares - WV Flood Relief

This past week has been crazy! The news has been dominated by Brexit, the house sit-in, and the ever entertaining presidential campaign. There was also tremendous tragedy in West Virginia as devastating floods took lives and destroyed homes. A few … [Continue reading]

Dead Cat Bounce

Hello MarketClub members everywhere. I am sticking out my neck today and calling today's overnight rally a "dead cat bounce." This type of rally is not a reversal, it is more of a correction for a very oversold condition in the equity markets. If … [Continue reading]

Covered Call Strategy Produces Double-Digit Return

Introduction I’ve written a series of articles detailing the utility of options and how an investor can leverage a long position in an underlying security to mitigate risk, augment returns and generate cash without relinquishing the security of … [Continue reading]

Charting The Energies Data Release

Each week, the Energy Information Administration (EIA) reports estimates for crude oil and petroleum products. These supply, demand and inventory estimates are used by traders to assess the inventory surplus (or deficit), the supply-demand balance … [Continue reading]

The Big Reset

Hello MarketClub members everywhere. Well, we had the weekend to ponder and recalibrate our thinking towards Great Britain's historic exit from the EU and its effect on world markets. Personally, I congratulate the British for having the chutzpah … [Continue reading]

Brexit: The Pound Will Survive, The Euro Will Not

Friday, June 24th will be remembered as a Black Day for the British Pound. On that day, investors, shocked by the “leave” vote for Brexit, pushed the Pound off a cliff, toward its worst daily loss since 1985. And yet, despite the Pound being at … [Continue reading]

Weekly Futures Recap With Mike Seery

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets. Michael frequently … [Continue reading]

It's Official, They Exit! Risk Aversion Chronicles: Gold Leads The Safety Demand!

Today is a historic day in World financial history, which will be recorded in our memory forever! And it was a long and sleepless night all over the world as financial markets were frozen in agonizing suspense. We should admit that Britons are … [Continue reading]

See EU Later - Brexit is for Real

Hello MarketClub members everywhere! The votes are counted and almost everyone got this one wrong, including the British betting shops. It's official - England is leaving the EU after 43 years. I guess I was in the right camp when I posted this on … [Continue reading]

Brexit Poll: Will They Stay or Will They Go

Today is finally the day. Britain's long-awaited referendum on whether or not the U.K. exits the E.U. will finally happen. After months of polls showing that a narrow majority of Britons favored staying with the E.U., recent surveys have shown the … [Continue reading]

Fed To Markets: See You In 2019

The Federal Reserve has made it pretty clear, by its actions if not by many of its pronouncements, that, like Melville’s Bartleby the Scrivener, it really would prefer not to do anything. Now it looks like it’s planning to take off not just the … [Continue reading]

What Is That Popping Noise In The S&P 500?

I'm not sure if that if that popping sound is only in my head or happening in the markets? Is the S&P 500 about to pop following Brexit or will it be Fed-induced liquidity rallies as usual? We are long the S&P 500 via a put option spread but will … [Continue reading]

© Copyright INO.com, Inc. All Rights Reserved.