GLD: The Common Man's Sovereign Wealth Fund

The streetTRACKS Gold Shares ETF (NYSE:GLD) "tonnes in the trust" rose by more than 12 tonnes yesterday as the price of gold gained another $17 per ounce in London.

The trust now has 615 tonnes in allocated storage, now well clear of China and the ECB, an organization that is believed to have sold some of their reserves recently.

Netherlands - look out, you're next and then it's on to Japan.

This is turning into kind of a "common man's" sovereign wealth fund, in some ways similar to the giant funds run by China and some Middle Eastern oil exporting nations.

Just like these big countries that are looking for something to do with their huge piles of quickly depreciating U.S. dollars, it seems that many individuals are also accumulating way too much paper money and they too are looking for something to do with it all.

This is not a bad place to put it.

Full Disclosure: Long GLD at time of writing.

Comments

[iman:]

CEF makes more sense to me. It has gold and silver, and it gets capital gains treatment. Also its closed ended, GLD could get so big that it would be impossible for them to hold the amount of gold that stock owners buy into.

2007 Dec 12 09:03 PM

[sasian:]

India never produced large quantities of gold down the ages.. but has been importing between 600 to 900 tonnes of gold a year for more than 500 years..
try and give the holders there a piece of paper in exchange for even a gram of the yellow stuff which begins reading ¨I promise To Pay The Bearer¨...
Gold is accumalated like History and Culture and Never a Safe Haven to Rush into when the going gets rough..

2007 Dec 12 11:57 PM

[COTtrader:]

Gold is ALWAYS a safe haven during times of global inflation. For countries to counter the damage done to their export markets due to a weakening U.S. dollar, these countries will PRINT (fiat money) money in order to BUY dollars thereby mitigating the strength of their own currency. Of course, ALL fiat money creation is the SOURCE of INFLATION. Global inflation is growing fast and gold WILL continue to shine for years to come.

2007 Dec 14 10:23 PM