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Central Banks Leasing Gold, seems to come to an end. http://seekingalpha.com/a/afin $GLD $PHYS Apr 9, 2012
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Zero Hour Debt analysis http://seekingalpha.com/a/8vlb $GLD $SLV Mar 9, 2012
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Treasuries are a bad deal http://seekingalpha.com/a/8koj $TLT Feb 29, 2012
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Katchum on The Effect Of Gold ETF's On The Gold Price Yes, for example in the COMEX warehouses, somet...
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GOOBIE on The Effect Of Gold ETF's On The Gold Price For every share traded there is a buyer and a s...
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Katchum on The Effect Of Gold ETF's On The Gold Price Daily share volume is 14 million for GLD. At $1...
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GOOBIE on The Effect Of Gold ETF's On The Gold Price Katchum,Do you have any feel for how much ETF b...
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Katchum on Red Alert In Gold Lease Rates You talking about for example the 25% premium i...
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The Effect Of Gold ETF's On The Gold Price
As demand is now being dictated for a part by the ETF's, we need to pay attention to what is happening in the trusts. Are they unloading their gold? Because if they keep unloading their gold, the demand from ETF's is going to decline, which has a negative impact on the gold price. This is the theory of supply and demand.
You can monitor this chart daily at the SPDR gold trust site:
http://www.spdrgoldshares.com/usa/historical-data/
(click to enlarge)
Chart 1: SPDR Gold Trust: Units in the Trust (Red Chart, right axis)
As I indicated here, ETF's were the largest sellers in gold, resulting in a 13% decline in the demand for gold. I cannot stress how important it is that ETF's keep buying gold. If they don't buy, like what happened starting in 2013, then the price of gold will decline. The great difference between 2013 and 2008 is that in 2008, ETF's were massive buyers of gold, while today they are massive sellers. Keep watching this trend. If it reverses, you can confidently start buying precious metals.
Disclosure: I am long AGQ.
Red Alert In Gold Lease Rates
I have become very bullish lately on silver and was already bullish on gold.
But the following chart makes me ultimately bullish. We see the biggest increase in gold lease rates as of yesterday and we have seen this before. In 2008, the gold lease rates started to spike upwards, which meant gold was in short supply. It also meant that the "interest" to hold gold was going up, just like the "interest" on your cash is going up.
This ultimately means that the world is valuing gold at a higher interest rate and the central banks are demanding their gold back from the bullion banks.
We are in for a huge upside move if you ask me.
(click to enlarge)
Disclosure: I am long AGQ.
China Gold Imports From Hong Kong Hit Record High In March 2013
An update on the China Gold Imports from Hong Kong has just been put out on Bloomberg. It is amazing, how much they are buying, imports more than doubled.
http://katchum.blogspot.be/2013/04/china-gold-imports-from-hk.html
And the thing is, the massive drop in the gold price in April is not even counted in the numbers yet.
(click to enlarge)
(click to enlarge)
(click to enlarge)
Disclosure: I am long AGQ.