Thursday, 15th June 2006 (3147 views)

Consolidated stocks in Exchange Traded Funds (ETFs) are up on similar figures from the end of May, lending high hopes to traders of a quick recovery in the price of gold.

ETFs are gold-backed stock market securities. Bloomberg reports that, as of 14th June, ETFs accounted for 452 metric tons of gold, compared with 443 tons at the beginning of the month.

Although the price of gold has dropped considerably in the past few weeks, losing over 20 per cent of its value, traders and investors in the precious metal have never panicked, rather they have simply observed that it is a natural fluctuation of the market.

The principal of Exchange Traded Gold, the ETF management company based in London, Simon Village, has said that the rising levels of gold under management in the funds was a positive sign consistent with many market analysts' beliefs.

"If [investors] were going to bolt they'd have done it at a higher level, when it started to fall," he told the news agency.

"Gold's got a second wind coming."

According to Exchange Traded Gold, the company controls over 90 per cent of the world's market in gold-backed securities.

 

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