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Even after a lot of selling, the amount of gold remaining in ETFs suggests things could get a...

Even after a lot of selling, the amount of gold remaining in ETFs suggests things could get a lot worse. This year's sales of 19M ounces is a 28M ounce swing from last year's gain of 9M ounces, or 870 metric tons - a significant amount compared to total demand of 4,360 tons. Gold ETFs still hold 65M ounces, leaving plenty to be potentially liquidated - consider the effect of gold ETF holdings returning to 2008's level of 30M ounces. The metal (GLD +1.8%) is enjoying a solid bounce today.
Comments (7)
  • The other side of the coin is that if gold ETF demand returns they'll have quite a bit of competition to buy the physical. It's worth watching how physical demand has been during the most recent correction in gold.
    1 Jul 2013, 03:48 PM Reply Like
  • Total joke. All of the physical gold sold by GLD was bought in a week last week on the LBMA and sold to Asia for a premium to spot. It's no coincidence that GLD was down 28% ytd and 28% of physical metal holdings was also removed to meet rising demand for physical.
    1 Jul 2013, 03:48 PM Reply Like
  • Yes, good observation. For something to be sold it also need to be bought.
    1 Jul 2013, 04:54 PM Reply Like
  • Exactly, here are the real drivers of gold prices.

     

    http://seekingalpha.co...
    1 Jul 2013, 05:57 PM Reply Like
  • Not sure where they are getting 65 mil ounces; I follow a blog (link below) which states that GLD's holdings are:
    Tons: 968.30
    Ounces: 31,131,769.95
    Value: US$ 38.670 billion

     

    GLD is the scene of the crime as Organ says as that is the source of the bankster's gold raid.

     

    The 65 mil oz may be total ETF's: IAU and the Sprott ETF's (do not believe the Sprott gold is available).

     

    http://bit.ly/MbtG2t

     

    (very long blog post)
    2 Jul 2013, 11:38 AM Reply Like
  • I'm waiting for gold to drop like you semi-state, then I'll load up the truck in stages. I'll win in the long term. Note I'm long physical Gold & Silver over 10 years.
    1 Jul 2013, 04:04 PM Reply Like
  • Since most of the arguments for owning gold in he first place haven't worked out, maybe the price just stays down and the ETF demand doesn't return.
    1 Jul 2013, 05:24 PM Reply Like
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