Wikinvest Wire

A rebound in inventory at the streetTRACKS Gold Shares ETF

Thursday, May 08, 2008

The "tonnes in the trust" for the streetTRACKS Gold Shares ETF (NYSE:GLD) is once again increasing after the largest decline in the the fund's three and a half year history late last month.
After share redemptions corresponding to over 61 tonnes of gold bullion over a five day period, share creation in the last two days has totaled 10.1 tonnes (see the streetTRACKS website for details)

With strong price gains so far today, the $850 level may prove to have been the bottom for the recent correction. Then again, the International Monetary Fund is again talking about selling over 400 tonnes of the stuff into the market. Note that this sale has to be approved by the U.S. Congress.
We are quickly coming up on the one-year anniversary of the start of the 2007 credit crisis when the price of gold began to rise from the mid-$600 level.

Wasn't that credit crisis supposed to be all fixed up within just two or three months?

Full Disclosure: Long GLD at time of writing

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Anonymous said...

Ted Butler says that SLV grew in bullion reserves even as the price fell. Would you have data or charts for this?

Tim said...

Here's an article on the subject at Hard Assets Investor: Stubborn Silver Investors

Anonymous said...

James Turk seems to believe that the GLD ETF has insuffcient oversight and that they may not have the gold in the vaults that they say they do. I'd like to hear your comments on that. ETF's are so much more convenient than his goldmoney system and other physical gold type setups. Is it just a sales tactic to worry GLD buyers?

Tim said...

I don't know, on an individual level, it doesn't really matter if they have ANY gold because, for all practical purposes, you can't take delivery. As for whether this is one more way for the "gold cartel" to suppress the gold price - anything's possible. I'd like to know how much of the 8,000+ tonnes of U.S. gold is still in U.S. vaults.


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