May 18, 2011
The Gold ETF (GLD) had something of a spike up into the end of April. Since that time GLD has corrected and is now -4.4% for the month of May (so far).
Since the ETF only has a price history from 2004, we wanted to show a few extra years to get a feel for GLD moves. We use the London PM Fix price prior to November 2004 and then use GLD thereafter.
Click on image below to enlarge
Compare this drawdown to Gold Stocks (GDX) --- which is consistently one of the most volatile ETFs among all the major ETFs. GDX is currently -10% this month. The GLD etf has only lost -10% in 1 month in the last ~15 years and that was October of 2008 -- which was an outlier month in many ways --- including the economy, gov't policy, credit spreads etc....
Understanding relative drawdowns is important way to view risk.
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