Wikinvest Wire

It's a long way to Italy

Thursday, March 12, 2009

Well, the suspense is over. It lasted all of one day. Absent any outflows (which have been few and far between in recent months) the SPDR Gold Shares ETF (NYSEArca:GLD) will be looking at Switzerland in the rear view mirror from now on.
IMAGE For more details and on this subject along with a chart of the inventory growth at the world's most popular gold ETF, see this item from yesterday afternoon.


Full Disclosure: Long GLD at time of writing


IMAGE

4 comments:

pk de cville said...

Tim,

Can you explain the "% of Reserves" column and the "N/A" for GLD?

Thanks,

Tim said...

For central banks, it represents the amount of their total "reserves" that are held as gold. Since the IMF and GLD are not central banks, they are both N/A.

I see others have picked up on this theme:
SPDR Gold Trust Holdings Rise to Record, Overtaking Switzerland - Bloomberg
SPDR Gold Trust holds more than Swiss reserves - Reuters
SPDR Gold now world's sixth largest gold holder - Commodity Online

I started doing this more than a year ago when GLD had just broken into the top ten...

Anonymous said...

Tim,

You are still way out in front of the MSM on this. While they're talking about Switzerland, you're already looking ahead to Italy.
Well done.

- CS

Anonymous said...

C'mon! Do you honestly believe GLD has all that _*physical*_ gold??? They are not audited, and allow gold proxies to be counted as "gold."

How much of this is just paper backed by blind shorts or blind leases??? Have fun getting your GLD converted to bar form too if it is leased to them by a bank
that did so blindly and then failed or in general if there is a run on the banks.

Lately why do you think secure audited funds like CEF and GTU trade at a 10 to 20% premium to the
Comex spot price (and GLD)???

If you are talking regulated audited real gold in a vault I think you will
find there is no chance at all that GLD could have made so many big moves so
fast w/o charging a premium to spot. Would our Gov't care??? Of course not. Blind-shorted/leased Gold derived futures are doing the national financial panic suppression team a big fat favor now so why stop them? Gold from thin air only help to keep the price down and as a direct result contribute to confidence.

Audited gold and not audited gold are not the same!!! please point out your
list is comparing apples to oranges!!! Or realy apples to thin air.

Sorry

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