A prominent gold exchange-traded fund has declined significantly following a dip in the price of gold since April.
According to MarketWatch, investors in StreetTracks Gold Shares have been selling shares, resulting in the amount of gold held by the ETF falling from 500.7 tons on April 19 to 463.6 tons late last week.
The fund, which is sponsored by the World Gold Council, has enjoyed a massive increase of more than 50 per cent since its creation, but the latest dip shows the volatility of gold prices.
"Gold is very different, even different from other commodities such as oil, for cultural reasons," said the World Gold Council's managing director of investment research, Katharine Pulvermacher.
"Gold is seen as a wealth protector."
The StreetTracks Gold Shares fund was the first ETF to be listed in the US and makes the process of investing in gold easier. However, the ease of use of these funds may make gold an even more volatile stock because it is easier to quickly buy or sell shares.
The latest high-profile investor to be attracted to gold is Warren Buffett, who has established a new company, the Richline Group, which will supply the jewelry market with the yellow metal.