S&P GSCI Precious Metals Hits Lowest Since October 2010

On April 15, 2013 the S&P GSCI Precious Metals dropped 9.6% in one day, entering a bear market from the 2013 high occurring on January 23Since then, the index has fallen further to hit its lowest level of 1733.52 since October 1, 2010 when it was at 1717.53.  The precious metals index is down 20.1% YTD, and is off  21.3% from its 2013 peak of 2202.41.

Uncertainty ahead of the Federal Reserve meeting may be causing gold investors to fear whether the Fed will signal the end or a reduction to the quantitative easing.

The S&P GSCI Precious Metals Hits the Lowest Since Oct 1, 2010 Source: S&P Dow Jones Indices. Daily data from 1/6/78 - 6/18/12. Charts and graphs are provided for illustrative purposes only.  Indices are unmanaged statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities the index represents.  Such costs would lower performance.  It is not possible to invest directly in an index.  Past performance is not an indication of future results. The inception date for the S&P GSCI was May 1, 1991, at the market close.  All information presented prior to the index inception date is back-tested.  Source: S&P Dow Jones Indices. Daily data from 1/6/78 – 6/18/12. Charts and graphs are provided for illustrative purposes only. Indices are unmanaged statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities the index represents. Such costs would lower performance. It is not possible to invest directly in an index. Past performance is not an indication of future results. The inception date for the S&P GSCI was May 1, 1991, at the market close. All information presented prior to the index inception date is back-tested.

 

 

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4 thoughts on “S&P GSCI Precious Metals Hits Lowest Since October 2010

    1. Jodie GunzbergJodie Gunzberg Post author

      It depends what is the goal of the gold holding. You may have seen my blog post The Golden Question that covers ETF selling, bank buying, and gold as a safe haven. The ETF selling seems to have slowed, but if we see buying pick back up, it is possible ETF selling may strengthen with negative volatility. Also, the fundamentals of bank buying have been a story for some time and the activity seems to be supportive of gold, even if it is not a large enough factor to overcome the potential slowdown of quantitative easing. If the Fed does increase rates or otherwise slow the QE, it signals the economy is heating which has typically been negative for gold as a safe haven. Additional portfolio allocation reasons for gold which may be more or less stable could be gold as a diversification or inflation tool.

      Reply
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