Seeking Alpha

Gold ETF holdings surge

  • On the heels of more than a 4% rise in the price of gold this week, the SPDR Gold Trust (GLD +1.3%) saw a spike in gold holdings to 25.925M ounces as of Thursday, up 0.9% from the day before and the highest level since December 20.
  • In the last month, says Julian Phillips of GoldForecaster.com, there have been so sales from the GLD and more than 500K ounces of purchases. “This is tremendously significant because sales of physical gold from these U.S. gold ETFs and from the leading U.S. banks totaled 1,300 metric tons in 2013 ... This formed a key source of supply for gold. All of it went east to Asia never to return again.”
  • “The reduction in supply from the U.S., as these sales have now halted, is the prime reason the gold price is now rising,” he says, adding that it has nothing to do with U.S. economic factors.
  • Previous coverage: Gold's big week and year (so far)
  • ETFs: GLD, IAU, PHYS, SGOL, UGL, DGP, GLL, DZZ, UGLD, DGL, DGZ, GLDI, AGOL, DGLD, TBAR, UBG, GLDE, GYEN, GEUR, GGBP
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Comments (26)
  • patrimate2
    , contributor
    Comments (3) | Send Message
     
    What happens when JP Morgan run short and can't cover the paper? Do we even want to know?
    14 Feb 2014, 01:31 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4375) | Send Message
     
    Then they default on their gold leases and Germany never gets its gold back. A flock of black swans take flight.
    14 Feb 2014, 02:03 PM Reply Like
  • Jeb Handwerger
    , contributor
    Comments (630) | Send Message
     
    the time to position was in December....
    http://seekingalpha.co...
    14 Feb 2014, 02:17 PM Reply Like
  • patrimate2
    , contributor
    Comments (3) | Send Message
     
    Solo investor
    14 Feb 2014, 01:32 PM Reply Like
  • tawse57
    , contributor
    Comments (803) | Send Message
     
    What happens if this pm bounce is a GS JPM pump and dump short operation?
    14 Feb 2014, 01:40 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4375) | Send Message
     
    You can't pump and dump when you're already short.
    14 Feb 2014, 02:06 PM Reply Like
  • 6151621
    , contributor
    Comments (1180) | Send Message
     
    @ David: Yes you can!

     

    It would be done primarily to adjust the effective short entry level for instance. Yet I no longer believe JPM is short.
    14 Feb 2014, 02:13 PM Reply Like
  • d.chavo
    , contributor
    Comments (74) | Send Message
     
    Yes they can. The commodity traders are shorting while the institutional asset managers are buying for themselves and other clients. Just look at GS's 13F. If they are so bearish on gold why are they investing in pm miners and gold?
    15 Feb 2014, 01:51 AM Reply Like
  • filipo
    , contributor
    Comments (4024) | Send Message
     
    "adding that it has nothing to do with U.S. economic factors."
    Why is it that people were so reckless to overlook this simple truth ?
    I have been warning that this was going to happen since August last year when the first signals of massive Asian hoarding became known.
    I fear the worst for a number of bullion banks. Their very survival might be in jeopardy. This is so sad. Had they better listened to what a number of wise men were saying, and if they had not played mumbo jumbo with gold futures, the price of gold would have been so high that no Asian would have bought whatsoever.
    Now, liabilities of the shorters threaten Comex and the futures market.
    14 Feb 2014, 02:02 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9719) | Send Message
     
    Add on the current global currency crisis that is bubbling up in places as far flung as Argentina, South Africa, Turkey, China, Ukraine, Bahrain, North Korea, Syria, Iran and Venezuela and you have about two billion humans who will want to store their wealth in the age old yellow metal and NOT a wobbly, possibly corrupt local bank.
    14 Feb 2014, 02:19 PM Reply Like
  • june1234
    , contributor
    Comments (3212) | Send Message
     
    well said. Gold remains a fear trade
    14 Feb 2014, 03:02 PM Reply Like
  • filipo
    , contributor
    Comments (4024) | Send Message
     
    june,
    no, it's an insurance trade...
    14 Feb 2014, 04:23 PM Reply Like
  • june1234
    , contributor
    Comments (3212) | Send Message
     
    same difference
    14 Feb 2014, 07:10 PM Reply Like
  • ihadnihn
    , contributor
    Comments (54) | Send Message
     
    Gold does not require fear to go up. In the last several years it has been linked to fear, correctly or incorrectly. But the gains made in the 2000s go in the face of a relative lack of fear at the time. You could attempt to link it to 9/11 or something I suppose, but I mean just look at a 15 year chart. I don't think we've been in fear for 15 years. I find the chart/technicals of gold and the miners very appealing at this point, looks like a new leg in a longterm bull market to me, recently crossed/touching the 200DMA. This could easily be a (temporary) top in a bear market as well, if so I believe it doesn't have much further down to go (~20% or so, which I can handle). I've dabbled in the miners in the last weeks, I'll double down ~20% from now if needed. I've had no previous gold/miner positions until now so I have decent wiggle room at this entry point.
    18 Feb 2014, 03:50 PM Reply Like
  • moneybug
    , contributor
    Comments (6) | Send Message
     
    june, have no fear, many miners already up 50+% since mid December and just getting started!
    14 Feb 2014, 04:59 PM Reply Like
  • june1234
    , contributor
    Comments (3212) | Send Message
     
    I agree
    14 Feb 2014, 07:09 PM Reply Like
  • MrVincent
    , contributor
    Comments (257) | Send Message
     
    Whoever has the gold makes the rules.
    14 Feb 2014, 05:47 PM Reply Like
  • LeahyInvestor
    , contributor
    Comments (99) | Send Message
     
    Whoever has the oil makes the rules.
    15 Feb 2014, 11:43 AM Reply Like
  • MrVincent
    , contributor
    Comments (257) | Send Message
     
    Gold is money. Don't compare it to oil.
    15 Feb 2014, 08:11 PM Reply Like
  • JohnBinTN
    , contributor
    Comments (4029) | Send Message
     
    Oil makes the world go 'round. Not so much wrt gold.
    15 Feb 2014, 08:28 PM Reply Like
  • al roman
    , contributor
    Comments (10153) | Send Message
     
    It's prettier,we don't talk much about Diamonds on SA ?
    16 Feb 2014, 02:42 AM Reply Like
  • moneybug
    , contributor
    Comments (6) | Send Message
     
    Gold fits in my safe much better than oil.
    16 Feb 2014, 11:13 AM Reply Like
  • LeahyInvestor
    , contributor
    Comments (99) | Send Message
     
    Oil or Water or Food > Gold or Bitcoins
    15 Feb 2014, 11:44 AM Reply Like
  • LeahyInvestor
    , contributor
    Comments (99) | Send Message
     
    Farm Land > Gold
    15 Feb 2014, 11:45 AM Reply Like
  • BudH
    , contributor
    Comments (401) | Send Message
     
    Gold is going to be a great short in a few weeks.
    15 Feb 2014, 09:27 PM Reply Like
  • 6151621
    , contributor
    Comments (1180) | Send Message
     
    Do you mean better than April 2013? I doubt it but a lesser great maybe.
    16 Feb 2014, 03:14 AM Reply Like
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