Monday, December 15, 2008
It's been quiet at the SPDR Gold Shares ETF (NYSEArca:GLD) over the last couple months with inventory moving up and down in a very narrow range, however, that may soon change. Since peaking at 770 tonnes back on October 10th, the equivalent of seventh place in the World Gold Council's Official Gold Holdings (just ahead of Japan at 765 tonnes), inventory moved down slightly and, in recent weeks, back in the other direction.
But, it is quite unusual for the inventory to move within just a 20 tonne range for such a long period of time - normally, it's moving steadily in one direction or the other even if it ends up at the same place months later.
Actually, this same sort of pattern did occur during the first few months of the year as the gold price began its move from about $800 an ounce to over $1,000.
As shown below, after what appear to be frantic additions and subtractions for most of the last year-and-a-half, it's been just small, steady increases lately with another 3.1 tonnes added this afternoon.
It's not clear whether any of this has any significance - most likely, we'll find out soon enough.