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However, when physical holdings in gold ETFs fell 24%, outflows in silver witnessed only a modest fall of 1% over the same peirod or just 0.3% of annual demand.

12 Jul 2013

LONDON (Commodity Online): Gold exchange traded funds (ETFs) witnessed massive redemptions in the first half of 2013 causing gold prices to remain bearish. SPDR Gold Trust (GLD) prices ndropped 25% this year till July 10 while iShares Silver Trust (SLV) witnessed a fall of 37%.

However, when physical holdings in gold ETFs fell 24%, outflows in silver witnessed only a modest fall of 1% over the same peirod or just 0.3% of annual demand.

Silver ETFs also performed better on Thursday compared to gold on Fed Reserve Chairman Ben Bernanke hinting at a more accomodative monetary policy and sluggish dollar given firm support to the white metal. iShares Silver closed higher at $19.49, compared to previous close of $18.48 per share and with higher volumes.

Although silver ETFs have lagged their gold counterparts, investors stuck with silver funds until late June when some noticeable redemptions were spotted. On June 24, SLV saw a 192-tonne, or almost 2%, decline to 9,882 tonnes, its biggest daily drop since June 2012, according to an analysis by ETF Trends.

Silver also has many of the same safe haven properties as gold, though it also has a big industrial component as well.


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