Recently there has been some divergence in the inflow/outflow of gold into two separate ETFs. The larger SPDR Gold Shares ETF has seen weekly outflows since mid-November. However, the smaller iShares Gold Trust has seen two weeks of inflows. What does this mean?
The larger ETF is mainly used by big institutional investors and the smaller one is more often used by individuals. It simply means that there is disagreement among these two sectors on how and when to invest in gold as the gold spot price stabilizes from a multi-week selloff.
The reasons for the selloff are many. A stronger dollar, a strengthening economy, and rising interest rates all play a role. However, there are questions as to just how quickly the Trump Administration’s tax cuts and rollback of regulations will happen and how effective they will be in the face of massive sovereign debt issues and banking instability in Europe.
Until a verified change in trend has occurred in the gold and silver market, it is wise to continue with a strategy of buying the dips or steadily accumulation. Also, as tax season approaches, remember that you can own physical gold and silver in a self-directed IRA.