Trading volumes in gold exchange-traded funds, a favorite among individual investors, surged over the two-day swoon.
Evidence of the investor retreat from gold is showing up among gold exchange-traded funds.
However, with the advent of the gold exchange-traded funds like the SPDR Gold Trust (GLD), that all changed.
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Ahead of the sharp drop in gold prices, the gold exchange-traded funds saw significant redemptions and those outflows continue.
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He pointed to the popularity of gold exchange-traded funds and bullion websites that have drawn legions of new individual investors.
The gold exchange feature of the BWS only applied to international exchanges, it had nothing to do with domestic economics.
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This ended in October when a gold exchange opened in Shanghai where producers and wholesalers trade directly with one another.
Another sign gold's rebound may run flat is that metal held by gold exchange traded funds has declined even as prices recovered.
In addition, others pointed to the inflows of money into gold exchange-traded funds in November as evidence of investor interest in having exposure to gold.
This week there has been a bigger move by investors into gold exchange traded funds, which is adding to the upside push in gold prices.
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The advent of gold exchange-traded funds attracted further investment, he said.
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At the Shanghai Gold Exchange, trading volume increased 43%, to 5, 014.5 tons, in the first 10 months of 2010, exchange Chairman Shen Xiangrong said, according to Xinhua.
The gold exchange aspect of the BWS was one way, foreign members could exchange their dollar for gold (at a fixed price) but not the other way around.
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In other news, reports Thursday said Indian demand for gold exchange traded funds ( ETFs) was at a record high in September, despite weak retail sales of gold jewelry in the country.
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ZeroHedge notes that the most recent hike comes two weeks after a 22% margin hike on gold by the CME and two days after the Shanghai Gold Exchange raised them by 26%.
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The Reserve Bank of India said it would ban banks and non-finance companies from giving loans against units held in gold exchange-traded funds and gold mutual funds because these products are backed by bullion.
In truth, a gold exchange standard would be as simple as Treasury announcing a plan to peg the dollar to a set gold price, after which the market price of gold would regulate the supply of money.
Yet it is the reason government spending has blown past budgetary constraints, revenue downturns, and public outrage since the last check on Federal Reserve dollar-printing ended in 1971 with the demise of the Bretton Woods gold exchange standard.
Ken Morrison, editor of the online newsletter, Morrison on the Markets, pointed out that the rally has come with a steady level of open interest in futures and no change in the net ownership of the SPDR Gold exchange-traded fund (GLD) since Dec. 22.
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So you could even put the switch down to the slow death of that natural deflation built into the Gold Standard (or rather its step-nephew, the Gold Exchange system), starting at the very same time as US stockholders kissed goodbye to earning a premium each year above Treasury yields.
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The Market Vectors Gold Miners exchange-traded fund rose 4.8% over the same period and the SPDR Gold Trust ETF ticked up 1.9%.
In other words, these countries wanted to confiscate gold in exchange for superfluous paper.
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Paulson also maintained his bet on gold, through a 31.5 million share stake in the SPDR Gold Trust exchange-traded fund.
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Cornell University Professor George Warren persuaded FDR, against the advice of all of his experts, to rectify the pent-up deflationary pressures caused by the gold-exchange standard.
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The SPDR Gold Trust exchange-traded fund fell 1.7%.
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Reports overnight said major investors George Soros and John Paulson have significantly increased their holdings in the largest gold-backed exchange traded fund, SPDR Gold Trust.
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The government's recently stopped requiring gold-backed exchange-traded funds to hold physical gold in the amount of their sales.
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