Tuesday, 22 May 2012

Odd price moves on physical gold ETFs: SGLD, PHAU and PHGP



The gold price dipped below £1000 per ounce again this morning with both ETF Securities dollar and sterling etfs dropping as the dollar index spiked (above) and stock markets bounced starting in the US, may be inspired by US gains on  G8 and talk of Eurobonds.

But this is an excuse to post some odd physical gold ETF price moves from the recent past... however it starts with another mention of the common phenomenon of Fresnillo's price jumping as it did  at the end of trading yesterday (pic below) but peculiar price leaps in gold ETFs (listed below) seem to have calmed a bit - for now at least.










Fresnillo's share price rose from 1321p to 1364p per share (3.2%). Trading data from London Stock Exchange show that the higher prices were paid as a result of a "negotiated trade".




Here are some of the more odd physical gold ETF price jumps in addition to those already mentioned on ETF Securities physical gold ETFs PHAU and PHGP.



On Thursday 3 May 2012 at around 3pm the price of PHGP jumped  more than 2% and this was confirmed  by trading information from LSE which showed one trade of 5 shares going through at the higher price.


None of the other ETFs I looked at made similar moves. SGLD, GBS or PHAU.






Then there was this from Source's SGLD when its shares opened up much higher than its peers:



On April 17 both  of ETF Securities' dollar and pound denominated physical gold ETFs ( PHGP (£) and PHAU ($)) saw their prices jump after trading but in opposite directions.


These price moves did not seem to be replicated in the sterling and dollar physical gold ETFs provided by iShares.


Comparing ETF Securities' more liquid PHGP to the iShares' SGLN shows PHGP's price jumping. Unfortunately I didn't  manage to get the corresponding data from LSE.


During those days Gold Bullion Securities (GBS) also saw a big deviations from the pack at around 4pm on 18 April

(http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=Linear&chdeh=0&chfdeh=0&chdet=1334872326783&chddm=1533&chls=IntervalBasedLine&cmpto=LON:PHAU&cmptdms=0&q=LON:PHGP&)

I still haven't worked out why these odd price movements happen despite asking ETF Securities, LSE and a market maker. Despite assurances that there's nothing wrong. Apparently any fool with a grasp of the order book system operated by LSE should know this - sadly I still don't get it.



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