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Central bank buying of gold (GLD, IAU) is but "a drop in the ocean" of investor sales of gold...

Central bank buying of gold (GLD, IAU) is but "a drop in the ocean" of investor sales of gold ETFs, says Commerzbank. The team says banks bought about 30 tons in April vs. 117 tons pulled out of ETFs thus far in May, and 290 tons in Q2. On a more bullish note, this chart shows gold's current move bears close resemblance to the1976 bear market that set the stage for explosive gains later that decade.
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Comments (7)
  • Uncle Pie
    , contributor
    Comments (3866) | Send Message
    Will Rogers said, "buy land, they aren't making it anymore". Same is true of gold, the mining industry is struggling to increase the supply of gold by little more than 1% per year.
    Meanwhile the supply of paper money is growing like topsy.
    28 May 2013, 11:36 AM Reply Like
  • mikeyaffe
    , contributor
    Comments (60) | Send Message
    The Investment Banks are trying too hard to convince people to sell their gold.


    Remember these were the same guys that re-packaged mortgages and sold them as triple A securities.


    These are also the same guys that were flogging IPO's at ridiculous prices as the NASDAQ approached 5,000.


    Fortunately I read "Popular Delusions and the Madness of Crowds" so I am vaccinated against these fraudsters.
    28 May 2013, 11:48 AM Reply Like
  • Red Raider
    , contributor
    Comments (223) | Send Message


    "Popular Delusions" was a real eye opener, but you must be an old timer like me if you read it. Most kids today want to be part of the crowd, no time to study delusions.


    I plan to hang onto my gold.
    28 May 2013, 11:59 AM Reply Like
  • HighSierraTrader
    , contributor
    Comments (7) | Send Message
    The SPDR Gold Trust holds about 0.6% of the world's gold supply and about 4x the world annual production of gold. If the trust dissolved tomorrow and sold all of its holdings, it would certainly depress the price temporarily, but they can only do that once.
    28 May 2013, 12:44 PM Reply Like
  • mujalifa
    , contributor
    Comment (1) | Send Message
    Bernard du Plessis - South Africa:


    Please secure yourselves Everyone needs to buy gold NOW before the cookie crumbles!! Good luck
    28 May 2013, 02:10 PM Reply Like
  • Dan Waldorf
    , contributor
    Comment (1) | Send Message
    Question: when investors in GLD sell their shares, does the manager then sell the backing gold collateral into a declining market, thereby accelerating a decline in the price of gold?
    28 May 2013, 04:49 PM Reply Like
  • Ivan the Fool
    , contributor
    Comments (96) | Send Message
    Dan, my opinion is that there is a big difference between virtual gold and real gold. For instance, a billionaire cold sell off large holdings in something like GLD within a matter of seconds, but the movement of physical gold is very different. There can be a lot of manipulation in the markets with large price fluctuations without any movement of gold. Actual gold is a bit mysterious - the only way to know for sure would be to go into vaults and look - and even then what you see might not be real because there have recently been reputable dealers delivering bars and coins with gold on the outside and a metal with a similar density underneath. I am short on details here and going by my memory of stuff I have read over the last few months, but you should be able to search this topic relatively easily and find some very enlightening info. One interesting thing to note is that China has apparently put in orders for over 1000 tons of gold, but only about a ton has actually been delivered. Another story is billionaire George Soros selling large quantities of gold stocks prior to the big plunge on April 19th and then recently purchasing mining stocks. These are topics that you could investigate to get a better understanding of the current gold situation. Generally speaking, there is far less real gold than is being traded in funds. Even if people could exchange virtual gold for real gold, If everybody were to sell at once, only the people first in line would get the gold because it would quickly run out. Good Luck.
    28 May 2013, 07:34 PM Reply Like
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