Wednesday, May 11, 2011

Precious Metals Mutual Fund Market Cap vs GLD...Updated

Today on Bloomberg TV, Edel Tully from UBS, said Gold ownership is low...

Based on the chart below we would agree...

Turquiose line = Precious Metals Mutual Fund Market Cap
In the bottom chart there are 5 sets of up and down arrows.   Up arrows indicate a high in GLD accompanied by increased purchases in the PM Mutual Fund (Turquoise line in the top chart) and Down arrows indicate a low in GLD accompanied by increased sales in the PM Mutual Fund (Turquoise line in the top chart)...
This is shown in the first four sets of arrows...This is NOT the case for the last set of arrows...NOTE that the last Up arrow was not accompanied by increased purchases of the PM Mutual Fund...Investors did not chase PM's by buying the fund...But when PM's sold off that high additional sales of the PM Mutual Fund was seen...The market cap of this fund is now again in the area where PM's have had a bottom in the last two years...

The following link is to the London Bullion Market Association where there is a Download for a Forecast for 2011...Also on the web page is a forecast for Gold for 2011 made by several analysts...

http://bit.ly/lgUnms

Past performance is not indicative of future results.
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1 comment:

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