Gold ETF Liquidates 300 Tons of Gold This Year; Reflections on Momentum Trading

Investors in the Gold ETF - GLD liquidated 300 tons of the metal this year.

The reason? People are tired of losing money watching gold sink while the S&P soars.

Tom Lydon, the editor of ETF Trends, says the disposal of over 600,000 pounds of gold so far this year "amazing" and "incredible." Click on above link for a video interview with Lydon.

Gold vs. S&P 500

GLD data by YCharts

Reflections on Momentum Trading

Since late 2012 the S&P 500 has been on a nonstop rise, while gold has gone the other way. People have thrown in the towel on gold in favor of momentum trading in stocks.

It seems nearly everyone is a momentum trader now, one of the consequences of inept central bank bubble-blowing policy.

Louise Yamada says it's Time for Gold Bulls to Abandon Hope.  See my response in Wild Swings in Gold and Silver; Time to Give Up Hope?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com 

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.