Traders can consider short selling gold ETF (GLD), silver ETF (SLV), and miner ETF (GDX).
Still, for someone looking to buy a physically backed gold ETF, the iShares looks attractive, he said.
For the Gold ETF (NYSE:GLD) it would be nice to see if this gap up can hold.
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And I still like gold bullion and the SPDR Gold etf, symbol GLD.
And in the interest of full disclosure, I and my subscribers have a 20% position in the gold etf GLD.
Similar aggressive selling was seen in silver and gold ETF GDX as well as miner majors Barrick Gold and Newmont Mining.
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This is essentially a closed-end fund holding only gold, and is far superior to a gold ETF like GLD and others.
The sheer size of the gold ETF virtually guarantees that sellers will not be able to find buyers at current prices.
The size of the gold ETF screams bubble because it indicates that everybody and their dog have bet all on gold.
The largest gold ETF holds more bullion than all the world's central banks except those of America, France, Germany and Italy.
At first, they might seem like mostly a precious metals investment product, a speculative vehicle, sort of like trading paper shares in a gold ETF.
ETFs became a popular way for investors to gain exposure to the precious metals in nearly a decade since the first gold ETF was introduced.
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For some, it may have to do with getting exposure to gold as an inflation hedge using a gold ETF rather than holding physical gold.
However, we argue that a gold ETF is not always a wise choice, particularly when it is treated as a short-term trade, like a stock.
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However, the current chairman of ETF Securities now envisions further growth, suggesting that what may ultimately become the largest gold ETF is not even around yet.
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But the gold ETF's hoard is down 13% from the record 1, 353.35 metric tons in December, as sales by big hedge funds sent some investors fleeing.
On Monday morning, CNBC host Jim Cramer said on his Twitter page that he still liked the gold ETF, but fell short of recommending a buy.
Miners continue to underperform bullion, though, with the Market Vectors Gold Miners ETF flat in the last three months compared with a 5% gain for the GLD gold ETF.
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Major names in the sector including Newmont Mines, Barrick Gold, and Goldcorp, are all down between 15% and 25% year-to-date, while the GLD gold ETF is up about 4%.
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Although the biggest chunk of those outflows came from a single gold ETF (guess which one), well over half the gold funds tracked by EPFR Global failed to take in fresh money.
The Market Vectors Gold Miners ETF ( GDX) has fallen more than 12% over the past three weeks, while the Market Vectors Junior Gold Miners ETF ( GDXJ) has fallen just about 15%.
Commodity Futures Trading Commission data showed speculative buying, in one of its weekly commitment of traders reports, was at a record level and Barclays Capital said gold ETF holdings are at a record.
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Since reaching its peak price during the fall of 2011, the gold ETF GLD has declined in the neighborhood of 28%, and was even lower before a bounce off of lows early in the week.
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In October, gold ETF inflows reached 43.8 metric tons, according to Anne-Laure, precious metals strategist at BNP Paribas, with the biggest of the ETFs, the SPDR Gold Shares ETF (NYSE: GLD), capturing 15.5 tons.
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There are two reasons for this: In the 1970s, the gold ETF did not exist, so speculators who wanted gold exposure had to purchase bullion and take physical possession of it or purchase gold mining shares.
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Special Offer: Peer-to-Peer investing at its finest can be found at Valueforum.com, an exclusive Web community where investors share ideas on everything from gold ETF GLD to Canadian Royalty Trusts like Penn West Energy, Click for details.
My technical indicators triggered a sell signal on February 19, almost exactly at that peak, but had me and my subscribers back on a buy signal in mid-August and back into a 20% position in the gold etf GLD.
The first gold bullion ETF StreetTracks Gold Shares, started trading on the Big Board in 2004.
The top holdings of the Market Vectors Gold Miners ETF is Barrick Gold ( ABX) and Goldcorp ( GG).
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