SPDR Gold Trust Inventory Remains in a Very Narrow Range

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 appears 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 yesterday afternoon.
It's not clear whether any of this has any significance - most likely, we'll find out soon enough.

Comments

[GMiki1:]

The consensus is that the shorts (all two of them) are under pressure in the COMEX and that they've been advised to cover. That means prices should move up nicely--at some point, anyway.

Anyone reading any of the reporting on the Bernie Madoff swindle will get further confirmation of how stupid the big investors and BANKS have been. That's why we do our own investing and that's why we follow the markets ourselves.

2008 Dec 16 11:22 AM

[Jack Walker:]

Tim,

Do you know if the SPDR Gold Shares ETF (NYSEArca:GLD) is permitted to lease gold holdings to the bullion banks who then us it as margin for shorting or is it all being held long and unencumbered in a depository?


Jack

2008 Dec 16 01:02 PM