Wikinvest Wire

Gold ETF "tonnes in the trust" increases by 46 tonnes

Friday, July 11, 2008

Earlier today, the "tonnes in the trust" for the SPDR Gold Shares ETF (NYSEArca:GLD) increased by an astonishing 46 tonnes, in what might be termed an "adverse reaction" to the many and varied government assurances that everything is hunky dory at mortgage giants Fannie Mae and Freddie Mac.Yes, a scale change was required for the chart above.

This dwarfs anything other than the second day of trading for the ETF back in November of 2004 which saw 50 tonnes added.

The only thing that comes close are two 19 tonne additions, 20 days apart, back in January of 2006, an 18 tonne addition in November of last year, and 52 tonnes added over a period of five days last September, just as the credit crisis was piking up steam.

This brings the total "tonnes in the trust" to 702, also a new record high.
This is a pretty astonishing increase, particularly after the buying over the last month or so. A total of 100 tonnes have been added in the last twenty days of trading and this brings the year-over-year increase to more than 200 tonnes.

Full Disclosure: Long GLD at time of writing.

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Anonymous said...

Ok I'll bite, what are tonnes in trust? Gold they physically hold or are contractually obligated to buy, or gold they hold on paper?

Anonymous said...

Though some believe there is no gold in their vault, part of a great conspiracy to suppress the price of gold, according to their prospectus, they actually do own the stuff:

"The Gold Shares represent fractional, undivided interests in the Trust, the sole assets of which are physical gold bullion and, from time to time, cash."

Tim said...

Since I created this chart on Friday, the GLD data was revised to now indicate 706 tonnes...

Anonymous said...

Did you see the note by Ted Butler that in the same time period, no silver was added to SLV because he believes NONE IS AVAILABLE.

Anonymous said...


Did you know that

IndyMac was founded in 1985 by David Loeb and Angelo Mozilo (who also founded Countrywide)

I am sppechless on Tan Man's contribution to this mess ...

Tim said...

I'll have a look at Butler's latest and, yes, I read about the Countrywide-Indymac connection. It's like, if you were trying to make this stuff up, you couldn't have done any better.

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