How Badly is Gold Bleeding?

In light of much negative news about the bust in gold, I thought it might be interesting to share the impact the gold drop has had on dollar exposure in the two most widely used commodity indices, the S&P GSCI and DJ-UBS.  Below is a note we published today in a media bulletin:

Good afternoon –

Jodie Gunzberg, Vice President at S&P Dow Jones Indices has issued the following research note:

Gold’s Bear Market Impact on the Commodity Market

Gold is down 21.6% YTD in the S&P GSCI and DJ-UBS

What does that mean in dollars? The indices lost about $1.6B in gold in 2013.

BUT it’s not all bad news. Gold has actually gained almost $600m in the indices since its bottom on June 27, 2013. 

There are approximately $155B tracking the two most widely followed commodity indices S&P GSCI and DJ-UBS.  While the assets tracking are closely split with about $80B tracking the S&P GSCI and $75B tracking the DJ-UBS, the amount in gold is quite different.  The S&P GSCI has been impacted far less from the lower exposure resulting from the world-production weight.

Data as of August 13, 2013

Data as of August 13, 2013

 

The posts on this blog are opinions, not advice. Please read our disclaimers.

One thought on “How Badly is Gold Bleeding?

  1. Pingback: Commodity Beta: Hogs-Wild? Hardly. Energy Fills the Thrill! | S&P Dow Jones Indices

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