A Rebound in Inventory at GLD

The "tonnes in the trust" for the streetTRACKS Gold Shares ETF (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 in recent days, 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.

Comments

[GMiki]

These markets can move very fast and really shouldn't be traded day to day unless you're a commercial trader. As someone said," Don't just do something. Stand there." Gold and silver are going noplace but up.

[Larry K.]

There is no way in Hell that the price of gold will not move inversely with the relentless devaluation we are seeing in the U.S. dollar. If you need proof of this, look at the rapidly escalating price of oil, which, like gold, is also denominated in U.S. dollars.

Additional proof is unfolding, as many countries are hastily decoupling their currencies from the dollar. Gold's minimum price target is $2,000/ounce, probably before the end of this year. You can take that to the bank!

[preacher]

Everybody speaks of a third leg. To have 10% of your net worth in gold (7.5%) and silver (2.5%) is good. Gold dropped $18.00 in an hour today. Goldcorp sold its 48% stake in the largest silver owner in the world, leaving it technically bankrupt. I believe the US$ has made a bottom. If silver wheaton has to dump silver to pay its debt, silver may plunge. The one world government has a reason to support gold not silver. GOD BLESS Y'ALL!