Gold isn’t the only precious metal spiking in price these days as investors run for cover.
Precious metals were all over IndexUniverse.com’s top ETF performers list yesterday, a sign that gold isn’t the only safe-haven asset investors are flocking to as they worry about the health of the
Gold grabbed all the headlines on Tuesday as it climbed to a new high of $1,269.70 a troy ounce, but investors appear to be taking full advantage of the broad array of exchange-traded products that are now available as they find new ways to hunker down, wondering what happens next.
Indeed, while all the big gold ETFs—the SPDR Gold Trust (NYSEArca: GLD), the iShares Gold Trust (NYSEArca: IAU) and the ETFS Physical Swiss Gold ETF (NYSEArca: SGOL)—were among the top-20 movers yesterday, the ETFS Physical Palladium ETF (NYSEArca: PALL) and the iShares Silver Trust (NYSEArca: SLV) were the No. 1 and No. 3 performers, with gains of 3.7 percent and 2.6 percent, respectively.
Today, that dynamic was even clearer, with PALL up another 0.7 percent, while GLD was taking a breather after yesterday’s 2.0 percent gain, shedding 0.1 percent.
“The common denominator here is that gold, and precious metals in general, shine when there is a loss of confidence in the dollar, in central banks or in the government,” Bill Koehler, chief investment officer of Leawood, Kan.-based ETF Portfolio Partners, told IndexUniverse.com in a telephone interview.
|Top 20 1-Day Performers (excluding Leverage/Inverse, >1,000 Shares Traded)|
|Ticker||Name||1-Day Performance||1-Day Volume||AUM
|PALL||ETFS Physical Palladium||3.66%||137,869||409.03|
|SGG||iPath Dow Jones-UBS Sugar Subindex Total Return ETN||2.89%||89,390||75.92|
|DBS||PowerShares DB Silver||2.52%||24,312||79.38|
|SIVR||ETFS Physical Silver||2.46%||241,371||200.38|
|PPLT||ETFS Physical Platinum||2.43%||119,234||468.77|
|JJS||iPath Dow Jones-UBS Softs Subindex Total Return ETN||2.37%||2,300||13.96|
|PTM||UBS E-TRACS CMCI Long Platinum Total Return ETN||2.37%||40,979||62.30|
|PGM||iPath Dow Jones-UBS Platinum Metals Subindex Total Return ETN||2.26%||13,334||77.94|
|JO||iPath Dow Jones-UBS Coffee Subindex Total Return ETN||2.12%||13,320||24.54|
|JJP||iPath Dow Jones-UBS Precious Metals Subindex Total Return ETN||2.11%||6,800||14.70|
|DBP||PowerShares DB Precious Metals||2.11%||58,831||304.95|
|DGL||PowerShares DB Gold||1.99%||54,987||243.30|
|SGOL||ETFS Physical Swiss Gold||1.97%||206,116||863.43|
|ULE||ProShares Ultra Euro||1.96%||9,760||13.48|
|IAU||iShares COMEX Gold||1.89%||3,603,630||3,988.68|
|NIB||iPath Dow Jones-UBS Cocoa Subindex Total Return ETN||1.81%||78,585||11.57|
|COW||iPath Dow Jones-UBS Livestock Subindex Total Return ETN||1.59%||47,303||72.17|
Secular Bull Market
Koehler said the Federal Reserve’s recent announcement that it was likely to launch into a second round of so-called quantitative easing involving the purchase of Treasurys to keep bond yields low enough to help stimulate economic activity is a big reason behind the recent run-up in metals that included gold hitting a record.
The Fed’s announcement means that the government will be “printing more money,” and that erodes faith in the dollar, Koehler said. Amid the fears that the
“We are in a secular bull market for gold,” Koehler said. “Gold prices have been going up for some 11 years now, and we are still seeing double-digit returns.”
GLD was third on IndexUniverse.com’s creations list on Tuesday, bringing in another $247.3 million and lifting its assets to $52.83 billion.
“You go back 30 years, and you see that gold is not overvalued relative to stocks right now,” Koehler said. “Gold prices have a ways to go. Long-term charts … show that gold could easily go to $2,000 an ounce.”