NEW YORK ( TheStreet) -- Gold ETFs have been sinking. During the past 12 months, SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) each lost more than 25%, according to Morningstar. This year shareholders withdrew $21 billion in assets from SPDR Gold, a huge outpouring for a fund that now has $37 billion, according to IndexUniverse.com. Rising interest rates have propelled the flight. When yields climb, bonds become more attractive, and investors tend to dump gold, which produces no income.Is this a time to stay away from gold? No, argued panelists who spoke last week at the Morningstar ETF Invest Conference in Chicago. While gold may be an erratic performer, a small stake can help to diversify portfolios, the speakers said. Investors should keep from 2% to 10% of assets in gold, said Juan Carlos Artigas, head of investment research for the World Gold Council, an industry group. "For most investors, the rationale for holding gold should be capital preservation," Artigas said.
Can Gold Regain Its Shine?
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