The FT is reporting today that China is likely to to launch its first ETF backed by physical gold at some point this year. According to the World Gold Council (and most people who follow the metals), this will provide a big boost to demand for the yellow metal.
Investment demand for gold fell for the first time last year since 2007. The launch of the aforementioned gold ETFs would be welcomed by gold bugs that have been frustrated with the recent movement in the metal. The SPDR Gold ETF ($GLD) is up 4.5% since the start of 2012 and is lagging the overall stock market.
We continue to hold $GLD for clients and our original purchases were in 2006. Therefore we have large gains in the ETF and continue to hold at this time, but the charts are becoming more bearish as of late. The news out today is one major reason to hold or start to look to build positions if you have been looking for an entry point.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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