Gold-rated funds outperformed their peers over the 12-month and 36-month periods, but silver-rated funds performed slightly better than gold funds
over the 60-month period.
The outflow meant asset under management (AUM) of gold funds
plunged by 10 per cent so far in the current financial year.
The surge has been enough to entice hedge fund guru George Soros - who once called gold "the ultimate bubble" - to buy into gold funds
and related stocks, filings showed this week.
"We found that there is overwhelming demand for gold to play a greater role in Islamic finance," Dempster says, adding that "our discussions with industry participants signal that it will act as a major catalyst for the development of a broad range of Shariah-compliant gold products such as gold accumulation plans and physically-backed gold funds
Figures for the end of last year showed the total amount invested in gold funds
came to some 10,000 kilograms of gold!
( See chart on performance of gold funds
vis- a- vis other funds).
gave 25% returns, compared to gold funds
losing 9% during the last one year.
Investors pulled $38.6 billion from gold funds
in 2013, the most in data going back through 2000, according to EPFR Global, a research company.
iShares, which has operates in Switzerland since 2003, had CHF7.7bn (USD8.1bn/EUR6.2bn) in Swiss assets across equities, fixed income and gold funds
as at the end of May this year.
The lower prices have failed to boost physical demand in Asia, traditionally the biggest buyer of gold, and investors have continued to flee exchange-traded gold funds
In New York, investors are dumping gold funds
at the fastest pace in two years in favour of equities, compounding a slump that has wiped $560 billion from the value of central bank reserves.
Investors are said to be dumping gold funds
in favour of equities, and so far the slump in prices is believed to have wiped out USD560bn from the value of central bank reserves.