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Albert Sung is the author of the Katchum Macro-Economic Blog, monitoring breaking economic news from a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at... More
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  • COMEX Registered Gold Increase Points To GLD ETF Inflows 2 comments
    Apr 1, 2014 5:56 PM | about stocks: GLD

    This is why I think the gold price is bottoming out, we have additional evidence at the COMEX.

    When gold started its decline in April 2013, the COMEX registered stock level kept dropping due to outflows. This event was building up stress in the gold market as the gold price dropped.

    (click to enlarge)

    The same has happened with the GLD ETF. So this is very interesting, it means that the GLD ETF and the COMEX gold stocks are correlated, which I didn't even notice up until now.

    (click to enlarge)

    Since January 2014 both the COMEX and the GLD ETF bottomed out and started taking in physical gold stock. This made the price of gold go up more than 10% to date. You can see on the first chart that the registered gold stock at the COMEX is even increasing as we speak. This is a bullish indicator as this means that the GLD ETF gold stock level will increase too (if my correlation theory is correct). And everyone knows that when GLD takes in physical gold, that this is real physical demand pushing prices upwards.

    Leverage has come down significantly due to the increase in registered gold at the COMEX. A further deleveraging should be bullish for gold.

    Stocks: GLD
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  • The_Hammer
    , contributor
    Comments (5050) | Send Message
    why are investors buying gld since it has only been a piggy bank for the banksters to pillage?
    why not phys, cef or gtu?????hello!
    1 Apr 2014, 06:42 PM Reply Like
  • Katchum
    , contributor
    Comments (601) | Send Message
    Author’s reply » Maybe because they are too small to put big money in? Unless you want dilution. You get diluted every now and then in PHYS.
    2 Apr 2014, 01:42 AM Reply Like
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