Wikinvest Wire

What's going on with the GLD inventory?

Friday, November 06, 2009

One of the surprising developments related to the recent move up in the gold price (that is, aside from India beating China to half the IMF's stash) is that there has been nary an addition to the SPDR Gold Shares ETF (NYSEArca:GLD), the world's most popular gold ETF.
IMAGE After a huge run-up early in the year, a move that was widely believed to have supported the price increase at the time, inventory is now actually below the level seen in April when the yellow metal sold for some $200 or more less.

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But What do I Know? said...

Interesting--maybe the buyers have moved on from "paper" gold to the real thing. . .

Anonymous said...

Some believe that you can buy gold with gld and it's cheaper than gold and they store it for free.


Tim said...

So, John Paulson - about the smartest hedge fund manager in the world over the last couple years who happens to own a couple billion dollars worth of GLD - is a sucker.

Duly noted.

getyourselfconnected said...

Very curious indeed, great pick up Tim.

My guess is central bank accumulation, and they only take delivery not ETF shares. Stil, bears watching.

Chuck Ponzi said...


but always remember that prices move on the margin. Volume is only a predictor of future prices, does not explain current prices.

Gold is a crowded trade. Very, very crowded.

You guys don't think you found gold first, did you?


Anonymous said...

Gold is certainly more crowded now than before and will get more so yet. But very, very crowded? Puh-lease! How many people do you know that actually have decent exposure? It may dump some at any point but I suspect not too much with most gold stocks still being in the tank. If there's something that truly is very, very crowded, that would be long-dated treasuries.

getyourselfconnected said...

Agree with anon, gold is only crowded in stories why it is a bubble. If 1% of investors allocated 1% to gold I cannot even give you a gold price at that moment.

The hatred against gold is telling.

Anonymous said...

This "sucker" made a nice profit this year on GLD.

Anonymous said...

The price of gold/commodities depends upon whether helicopter Ben actually removes the money he electronically printed up in time. When has he ever done so in the past?

Warren B just made a big bet on higher oil prices, which would disadvantage trucking. In the past, the economy tanked when oil costs hit 4% of GDP, which is about $80 today. The more printing, the higher oil costs to import. The worse the economy, the more printing takes place. Gold/oil become even more expensive. Kind of a doom spiral, until Ben finally comes to his senses.

Anonymous said...


Ben pull the plug? You have to be kidding. If they had that sort of restraint, they would not have bailed out anyone to begin with. The more you print, the more some parts of the economy (the favored bits) become dependent on it. They can jawbone all they want but there is no way to remove the liquidity without wiping out those who depend on it.

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