SPDR Gold Shares ETF Hits Record High Inventory

Inventory at the SPDR Gold Shares ETF (NYSEArca:GLD) just hit a new all-time high yesterday afternoon, the number of tonnes in the trust reaching 775.33.

[click to enlarge]

Comments

[Alberto Sus...:]

AND ?????

2008 Dec 18 08:51 AM

[NOWHEREMAN:]

And??? Physical Gold is not at a New high.

Draw your own implications. IMO

2008 Dec 18 10:16 AM

[Mark123:]

looks like a chart of gamma ray particles emitted by the sun and their effect on the price of gasoline....

2008 Dec 18 10:45 AM

[RCA:]

It is nice to have some analysis on the data, but, perhaps - just perhaps - the readers might try doing their own analysis. It's a shame so many people need to be spoon fed.

2008 Dec 18 10:57 AM

[MILESCFA:]

What inventory?

Read the article below to reach your own conclusion, but in short, the Bank of England is a central keeper of gold bullion; however, the BoE does NOT let auditors into the vault. So... "trust me" :-)

www.safehaven.com/arti...

2008 Dec 18 11:13 AM

[Mark123:]

wake up rca.... my point is----no meaningful conclusion can be deduced from this chart...

2008 Dec 18 11:24 AM

[jfoster99:]

I for one will Admit I do not understand why the SPDR fund would be at an all time high inventory wise when Gold is not.

I have been reading Articles, blogs and forums (Kitco has a great newbie friendly forum) 1-2 hours per day for the past month. I suspect it may take a few more month before I will understand the significant of such event without help.

In the mean time if anyone would care to lend a hand I am all ears. I don't need it spoon feed. A link to a website or article I could read to quickly get up to speed on the specifics involved here would be greatly appreciated.

In return, once I am knowlegable enough I will share what I know the help the next generation of new investors...

2008 Dec 18 11:33 AM

[RCA:]

On Dec 18 11:24 AM Mark123 wrote:

> wake up rca.... my point is----no meaningful conclusion can be deduced
> from this chart...

That was my interpretation of your remarks exactly, and, based on the chart, I humbly disagree with you. Take another look and think about it.

2008 Dec 18 11:56 AM

[The Retired...:]

I have a hard time understanding in America no one saves any more.
So with the world in recession where does the money come from to bring gold prices up like in the 1980"s?
I 'd like to know the best place and time to sell coins
come a real rise in price?

2008 Dec 18 01:11 PM

[Mark123:]

You gotta be kidding....If you could predict a meaningful conclusion from this chart, all gold investors would be rich...

2008 Dec 18 01:50 PM

[NOWHEREMAN:]

The amount of physical gold in GLD's inventory and the price of the ETF itself is supposed to reflect the price of Physical Gold given a little leeway for expenses. If the amount of Gold in inventory surpasses the price of the ETF, then the ETF only reflects the price of gold but not the true value of the ETF's holdings.

Its like a common stock trading below cash on hand per share.

GLD is supposed to move gold out of inventory to reflect its true value vs gold's price. It hasn't, and apparently has not done so for months.

So theoretically, if you buy GLD, you are buying physical gold at a discount. This isn't supposed to occur.

IMHO

2008 Dec 18 05:05 PM

[BigBoyBobby:]

The shares outstanding for GLD fluctuates -- a factor you are not considering.

2008 Dec 18 10:53 PM

[GaryCCB:]

I think what RCA (rudeness should not be tolerated - Tommy Lee Jones - "Lonesome Dove") is driving around the block on is that apparently State Street Global Advisors (issuers of GLD) have stretched a lot and purchased a tons of gold in the apparent belief that gold is definitely going to rise significantly. I tend to agree but have my gold stake divided 50% GLD and 50% GDX. GDX reflects mining companies. Gold stake is 20% of my portfolio which is very high for me.

2008 Dec 19 12:12 AM

[GaryCCB:]

I think what RCA (rudeness should not be tolerated - Tommy Lee Jones - "Lonesome Dove") is driving around the block on is that apparently State Street Global Advisors (issuers of GLD) have stretched a lot and purchased a lot of gold in the apparent belief that gold is definitely going to rise significantly. I tend to agree but have my gold stake divided 50% GLD and 50% GDX. GDX reflects mining companies.

2008 Dec 19 12:16 AM

[NOWHEREMAN:]

Yes I am, please note, I said "months". The chart above shows the value of GLD's inventory over a 3 month span (approx.). Meanwhile, GLD's price is decidedly less.

Lets approach the conundrum from a different angle. We are in agreement that GLD is supposed to mimic physical gold bullion, the price of the ETF does that. If GLD were to be liquidated tomorrow, the inventory held per share would exceed the price per share by the amount indicated in the above chart.

That is the conclusion I draw from it. Thats the way I see it. The Chart expresses per share inventory as well as price per share. IMHO

2008 Dec 19 03:30 AM