Thursday, May 08, 2008
The "tonnes in the trust" for the streetTRACKS Gold Shares ETF (NYSE:GLD) is once again increasing after the largest decline in the the fund's three and a half year history late last month.
After share redemptions corresponding to over 61 tonnes of gold bullion over a five day period, share creation in the last two days has totaled 10.1 tonnes (see the streetTRACKS website for details)
With strong price gains so far today, the $850 level may prove to have been the bottom for the recent correction. Then again, the International Monetary Fund is again talking about selling over 400 tonnes of the stuff into the market. Note that this sale has to be approved by the U.S. Congress.
We are quickly coming up on the one-year anniversary of the start of the 2007 credit crisis when the price of gold began to rise from the mid-$600 level.
Wasn't that credit crisis supposed to be all fixed up within just two or three months?