| Unlike in 2013, physically-backed gold ETP holdings have faced much less outflow pressure this year. Against 850 tonnes redeemed last year, some 130 tonnes have flowed out so far this year. Notwithstanding the recent bounce in price, the risk of redemption stays.
Cutting losses: Clearly, accumulation in gold holdings happened at various price points starting from as low as $1,000 an ounce. Gold prices peaked at about $1,900/oz two years ago. As prices fell, increasing amounts of the metal became vulnerable. It is likely that those who entered the market late — purchased at higher prices — sold first in the wake of falling prices..........................................Full Article: Source
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