Wikinvest Wire

Within five tonnes of a new record at the GLD gold ETF

Thursday, July 03, 2008

The SPDR Gold Shares ETF (NYSEArca:GLD) continues to add to its holdings (see the company's website for details). As of Wednesday, the "tonnes in the trust" for the world's most popular gold ETF increased to 659 tonnes, just short of the record set in March.
The trust now has a net asset value of over $21 billion with average trading volume in excess of 10 million shares per day and has attracted an increasing number of investors in recent weeks.

Relative to many other commodities, the gold price has lagged this year. In fact, with an 11 percent year-to-date gain, the yellow metal is 6th from the bottom in gains this year of the 19 commodities in the Reuters/Jeffries CRB Index.

The recent 61.0 tonne addition over the last 15 trading days parallels the 62.6 tonnes added over a period of 14 days last September.
Two months after the September additions, the gold price had moved almost $150 higher.

Food for thought...

Full Disclosure: Long GLD at time of writing

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Anonymous said...

look what happened to gold last time it reached this level --- CRASH!!!

Bruno said...

I guess by that thinking it can never pass $1,000/oz again w/o crashing shortly afterwards.

With the craziness in markets, where the tiniest bit of good news for the dollar sends gold plummeting, it tells me that:

1. gold will rise slower than other commodities until the masses out there finally have the hope of a "business as usual" economy beat out of them by bad news.

2. That won't happen till unemployment gets much worse, their credit gets tapped out so that price increases really hurt (now they're just borrowing to fund lifestyle)

3. It also won't happen as long as the masses are buying into the government's phoney statistics on inflation.

4. Once that dam breaks, and the illusion is shattered, gold could really take off. If given the choice between holding dollars that lose maybe 10% of their value each year, US stocks doing even worse, or something tangible (besides real estate), I think gold is the winner by default.

Tim said...

You don't hear too much gold bashing these days.

Anonymous said...

look what happened to gold last time it reached this level --- CRASH!!!

Brilliant observation. You should short the GLD etf. Please let us know how that works out for you.

Aaron Krowne said...

I think you don't hear too much gold-bashing because everyone's busy bashing oil... indeed, if commodities price increases are an "evil", that is the greater evil...

Honestly, the monetary authorities should raise rates and if not transition back to hard money at least de-criminalize (tax penalty) gold ownership and phase out real-estate favors. They need to corral the flight-to-safety into something not critical for consumption.

I talk about some of these things in my latest piece (controversial for reading the current events as a global hyperinflation).

atlasapple said...

This new run up in bullion by GLD is concurrent with the ETF offering DGP that allows a theoretical double Gold position.

I wonder how many GLD holders have switched to DGP, I know I have except where I would take a huge taxable gain hit.

No way that Oil hits $180 without Gold hitting $1000. And if there is an Oil "correction" where will the fast money go; certainly not into stocks or bonds.

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