Monday, September 22, 2008
The inventory at the SPDR Gold Shares ETF (NYSEArca:GLD) made a new all-time high today at 710 tonnes, exceeding the level of 706 tonnes reached on just two days in July. If you haven't already caught on to what's happening in precious metals markets these days, let me summarize, "Demand is soaring - prices will follow".
The world's most popular gold ETF now has its sites set on the Bank of Japan who currently holds down the #7 spot on the World Gold Council's Official Gold Holdings at 765 tonnes. After that it's Switzerland at #6 with over 1,100 tonnes.
Given what's happened in recent weeks, overtaking Japan could happen any week - maybe this week. Switzerland will take a little while, but, before you know it we should be hearing about those IMF gold sales again.
Hopefully, all the gold they say is being held for the ETF is really there. According to this report from Vietnam.net, they're having some problems in Saigon delivering gold to buyers on the paper market who then go resell the metal on the physical market where it fetches a higher price.
Over at the SPDR Gold Shares website, they have these wonderful pictures of all the gold that is "held in trust" for GLD shareholders.
Everything they say is in the trust is really there. Right?