What's Up with Gold Inventories? 20 comments
- Profile & More Articles
- Tim's blog: The Mess That Greenspan Made
- Subscribe to Iacono Research
an article to
-
Font Size:
-
Print
- TweetThis
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 (GLD), the world's most popular gold ETF.
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.
Related Articles
|
-
The Seeking Alpha 100
See allThe top 100 stock
market authors
selected for publication
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largestSee all
increase in followers
in the last 7 days
Fastest Climbers » -
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most active
Instabloggers.-
1
David Fry
-
2
TraderMark
-
3
Don Dion
-
4
Cliff Wachtel
-
5
Joseph L. Sha...
Top Instabloggers » -
1
-
Top StockTalkers
TopSee all
StockTalkers.
Top StockTalkers »
Einhorn alone, probably has a lot to do with that chart.
On Nov 06 06:10 PM yellowhoard wrote:
> The trend is to switch from paper assets to physical.
>
> Einhorn alone, probably has a lot to do with that chart.
Try CEF or GTU, they aren't ETFs but are trusts. Both have independent audits twice a year and list the gold they have. CEF also has silver bullion in its portfolio while GTU has just gold bullion. Here is a quote from goldstockbull.com
"For investors that prefer not to hold the physical gold, yet place a high value on the safety of their investment vehicle not to default, I recommend the Central Trust of Canada (CEF) or its all-gold counterpart, the Central Gold Trust (GTU). Unlike the popular ETFs such as GLD and SLV, these funds do not lease out your gold and they always maintain 90% or more of assets in unencumbered, segregated and insured, passive long-term holdings of gold and silver bullion."
However, you will likely pay a higher premium (% of NAV) for GTU or CEF shares than for GLD shares but CEF has been around for almost fifty years and is located in Canada.
On Nov 06 11:58 PM PastTense wrote:
> Are any of the gold ETFs safer than the rest?
If there is sufficient premium, authorized participants sell short shares, deliver gold and get new ly issued shares with which to cover their shorts.
If shares sell at a discount the authorized participants short gold, deliver shares in return for their book value in gold which they use to cover their gold shorts.
SLV and GLD are backed by physical metal, not futures or forwards or anything but physical metal.
On Nov 07 12:51 AM The Recusant wrote:
> PastTense wrote: "Are any of the gold ETFs safer than the rest?"
>
>
> Try CEF or GTU, they aren't ETFs but are trusts. Both have independent
> audits twice a year and list the gold they have. CEF also has silver
> bullion in its portfolio while GTU has just gold bullion. Here is
> a quote from www.goldstockbull.com
>
> "For investors that prefer not to hold the physical gold, yet place
> a high value on the safety of their investment vehicle not to default,
> I recommend the Central Trust of Canada (CEF) or its all-gold counterpart,
> the Central Gold Trust (GTU). Unlike the popular ETFs such as GLD
> and SLV, these funds do not lease out your gold and they always maintain
> 90% or more of assets in unencumbered, segregated and insured, passive
> long-term holdings of gold and silver bullion."
>
> However, you will likely pay a higher premium (% of NAV) for GTU
> or CEF shares than for GLD shares but CEF has been around for almost
> fifty years and is located in Canada.
Short covering rallies don't last forever.
The only method for the creation of GLD shares is the delivery of physical gold to custodian vaults.
What makes you think it's all a myth???
On Nov 07 02:25 PM paxjds wrote:
> Tim, I love your articles and I am a follower. But GLD in my opinion
> has no Tonnes of gold. Many articles have been writen that articulate
> that. Perhaps you shoud write Ficticious or Created Gold Tonnes till
> GLD opens its Vaults quarterly to prove it has Tonnes and the Corret
> Tonnes there. I believe GLD is no more than Ancient Mythology.
On Nov 06 11:58 PM PastTense wrote:
> Are any of the gold ETFs safer than the rest?
What is your problem??
I responded to a post questioning the auditing of GLD. They do get audited by an independent company twice a year.
No, obviously I have not personally witnessed the audit. Have you personally entered their vaults in London to see that they are short gold? I'm just tired of people guessing and supposing that they don't have what they say they have when there is absolutely no evidence to support such a theory.
If you don't like owning "paper gold" in whatever form that's fine and I understand the reasoning behind physical possession of metals. If you don't want to own GLD or SLV or futures or options that's just peachy with me. But why berate others who want to invest in that manner?? GLD and futures and options all fit MY investment objectives, along with holding physical gold, which I do.
You can have your opinion and express and explain it to others.
Can you engage in a reasonable discussion without being a jerk?
On Nov 07 03:27 PM 5142152-337 wrote:
> kohalakid.....re: your "GLD is audited". I have one question: Did
> YOU WITNESS this audit? If not, please shut up, there are some of
> us out here that want more than a piece of paper (its worth kinda
> what gold and silver ETFs are worth) to show there is PHYSICAL
> gold and silver backing the paper being stuffed in unsuspecting sheeple
> pockets.
On Nov 07 12:51 AM The Recusant wrote:
> PastTense wrote: "Are any of the gold ETFs safer than the rest?"
>
>
> Try CEF or GTU, they aren't ETFs but are trusts. Both have independent
> audits twice a year and list the gold they have. CEF also has silver
> bullion in its portfolio while GTU has just gold bullion. Here is
> a quote from www.goldstockbull.com
>
> "For investors that prefer not to hold the physical gold, yet place
> a high value on the safety of their investment vehicle not to default,
> I recommend the Central Trust of Canada (CEF) or its all-gold counterpart,
> the Central Gold Trust (GTU). Unlike the popular ETFs such as GLD
> and SLV, these funds do not lease out your gold and they always maintain
> 90% or more of assets in unencumbered, segregated and insured, passive
> long-term holdings of gold and silver bullion."
>
> However, you will likely pay a higher premium (% of NAV) for GTU
> or CEF shares than for GLD shares but CEF has been around for almost
> fifty years and is located in Canada.
-- The trusts, which are passive asset-holding, are closed-end which keeps shares of the bullion from being diluted. Any change in unit (share) price to the NAV is market driven.
kohalakid wrote: "SLV and GLD are backed by physical metal, not futures or forwards or anything but physical metal."
-- Yet recent posts have stated that the GLD bullion inventory contained FEWER bars than the previous inventory when there should be massive amounts more. Something is definitely askew, no? And as I've responded in other posts, I'd rather place my trust in an old Canadian vault than those in the basement vaults of the likes of JPMorgan, etc. in NYC. If those banks implode from massive defaults someday, can one really think that their holdings will be safe?
contraryriches.blogspo...
The last audit was conducted under President Eisenhower, over 50 years ago. The bankers say it's still all there, and bankers are very trustworthy - are they not? AUDIT THE FED. AUDIT FORT KNOX.
This gold belongs to the people.
On Nov 08 12:27 AM investorinPA wrote:
> Will the US ever sell its gold? Idiots are starting to say that we
> should...never listen to a professor who teaches at Rutgers!!
>
> contraryriches.blogspo...