FLASH GAGE – Large Inflows To Gold And Silver ETFs

Even with the price of gold and silver down yesterday and the equities putting in a solid performance, we witnessed large inflows into the gold and silver ETFs. I find this increase surprising, especially the way gold traded yesterday, but it seems there is no stopping the interest this investment is creating. Currently the gold ETFs are at 54.4 million ounces, up from 51 million ounces just two weeks ago. Silver also showing positive inflows over the last seven days.

What does this all mean? What I find interesting is the broad based interest this product has been attracting. From the individual retail investor to the large hedge funds (and those in-between), everyone seems to want a piece of the action. Without a doubt these inflows have been helping the price of gold to stay well over the magical $1,200 level.

Many financial advisors have indicated that there are more and more investors putting a higher percentage of their portfolios into the yellow metal. The question remains will this momentum continue? At the time of this report the price of Gold is up over $10 dollars per ounce at $1,220 per ounce, off from the highs overnight around the $1,226 level. If this continues I expect there will be an uptick in the physical arena. There will always be the investor more interested in holding the actual metal than holding a paper ETF.

Have a wonderful Tuesday.

Disclaimer: This editorial has been prepared by Steve Miller of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.