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Gold ETP flows had their weakest month on record, according to Barclays, causing net fund...

Gold ETP flows had their weakest month on record, according to Barclays, causing net fund ownership of the metal to fall to its lowest level since Dec. 2008. New short positions are at their highest since July 1999. Net outflows between Feb. 20-25 averaged more than 10M tons/day, with the bulk coming out of the GLD which lost 58M tons for February.
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Comments (25)
  • The Vet
    , contributor
    Comments (85) | Send Message
     
    The outflow of 58 tonnes is almost exactly the same as the GLD stock short. In effect long shareholders in GLD are still holding the same positions for the same amount of actual metal, the only difference is that created by short sellers who add shares to the trading float but do NOT add the equivalent amount of metal.
    1 Mar 2013, 03:30 PM Reply Like
  • agelbert
    , contributor
    Comments (57) | Send Message
     
    Excellent point. I have always said that the pricing formula that allows a short to tank a commodity's price is flawed. The whole options edifice built by Black Scholes allows the fed and its broker dealers to hide actual inflation by suppressing commodity prices arificially. This is so wrong! I think when the lid comes off this pressure cooker of disguised inflation, it will be ugly.

     

    In a sane world, a commodity's price would not fall unless you actually sold it, period.
    2 Mar 2013, 03:26 AM Reply Like
  • Matt Jonza
    , contributor
    Comments (86) | Send Message
     
    foolish... uncle ben won't be around forever
    1 Mar 2013, 03:46 PM Reply Like
  • WhitneyB
    , contributor
    Comments (322) | Send Message
     
    Yes, but investors have plenty of time to soak up those uncompressed mREIT yields through the end of this year,then jump back in when QE starts to abate. Two seconds to sell equities, two seconds to buy metals; timing is everything.
    1 Mar 2013, 04:34 PM Reply Like
  • Matt Jonza
    , contributor
    Comments (86) | Send Message
     
    good point whitney!
    1 Mar 2013, 04:37 PM Reply Like
  • The Vet
    , contributor
    Comments (85) | Send Message
     
    But in those 4 seconds the HF traders have skimmed off half the profits and turned the stock over a few thousand times....
    1 Mar 2013, 04:40 PM Reply Like
  • RobertPowell
    , contributor
    Comments (11) | Send Message
     
    Agree with you, that timing is everything:
    May be it is the time for two second to buy equities and two seconds to sell metals?
    2 Mar 2013, 02:22 AM Reply Like
  • RobertPowell
    , contributor
    Comments (11) | Send Message
     
    http://seekingalpha.co...
    2 Mar 2013, 05:38 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8698) | Send Message
     
    Gold sellers are gonna regret it when those trillions in Fed reserves are released into the retail banking system.

     

    Watch what happens when those banks start to defend against the tidal wave of cash by lowering lending standards and packaging loans for CLOs and CDOs ala the last decade...

     

    Get ready for $6 bread, $6 milk and $7 gas.

     

    Gold will hit $2500 by the time Obama goes back to community organizing and retires to big $$ speech giving.
    1 Mar 2013, 08:15 PM Reply Like
  • Jake2992
    , contributor
    Comments (831) | Send Message
     
    $6 bread in 2045.... yes
    1 Mar 2013, 09:31 PM Reply Like
  • IntrinisicWill
    , contributor
    Comments (13) | Send Message
     
    Actually, the fed has already released this liquidity into the system. The flip side of the Fed's reserve purchase was them issuing 'cash' into the system, which as a direct consequence brought rates lower across the curve. When the Fed eventually reversed this trade, you should see the reverse occur, higher rates aren't good for gold because it doesn't pay anything.
    3 Mar 2013, 01:56 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8698) | Send Message
     
    The "system" includes loans so...no, the money hasn't been released yet.

     

    The local bank could have $10 billion in reserves but if they aren't loaning the money then inflation is kept in check.
    3 Mar 2013, 09:48 AM Reply Like
  • Ananthan Thangavel
    , contributor
    Comments (836) | Send Message
     
    10 million tons? This is obviously a typo/complete misunderstanding of the gold market. I don't think there are 10 million tons of gold in existence today in the entire earth.
    1 Mar 2013, 11:19 PM Reply Like
  • New Low Observer
    , contributor
    Comments (2124) | Send Message
     
    Come on AT, maybe it isn't so obvious. After all, gotta give the tinfoil hats false data with incorrect analysis to theorize about conspiracies regarding the gov'mint that was created yesterday or maybe in 2008 when O'Bama was elected.

     

    Oh, by the way AT, just ignore that the same colander hats were making the same claims in the early 1970's...unless this is the next generation version (like in Star Trek...the same, only worse).

     

    Those hats will eventually be right but from my reckoning, being right 40 to 50 years after the fact is a little too late to be meaningful.
    2 Mar 2013, 04:27 PM Reply Like
  • filipo
    , contributor
    Comments (3679) | Send Message
     
    AT,
    10 metric tons ?
    3 Mar 2013, 01:43 AM Reply Like
  • blowforhome
    , contributor
    Comments (7) | Send Message
     
    M stands for metric not million.
    4 Mar 2013, 07:50 AM Reply Like
  • thrash
    , contributor
    Comments (120) | Send Message
     
    - Them Chinese and Russian fella's must be enjoying their gold buying at these prices. Who knows, maybe they are behind this price manipulation.
    2 Mar 2013, 02:32 AM Reply Like
  • User 9245471
    , contributor
    Comment (1) | Send Message
     
    The gold to Dow ratio has the Dow very high to cyclical ratios. Another way to look at it is that gold is now undervalued. If you wait to ride the bull to the end, your rear end will be in the dirt and the gold you want to buy could be $5000 per ounce in a NY second and you won't have the capital when the bubble bursts.
    2 Mar 2013, 02:38 AM Reply Like
  • Dennis R. Mahon
    , contributor
    Comments (417) | Send Message
     
    Well gee... guess I should get out of gold... BUT... good luck to the shorters... maybe I'm right this time.
    2 Mar 2013, 03:20 AM Reply Like
  • Know Nothing and Do Nothing
    , contributor
    Comments (111) | Send Message
     
    Buy some gold coins when the price is low and save it. Over a long period of time, this savings is much better than your saving accounts or IRA accounts.
    A prudent investor should hold 1/10th of his equity in real gold. Now is the time to pick up some.
    2 Mar 2013, 05:43 AM Reply Like
  • eagle1003
    , contributor
    Comments (1577) | Send Message
     
    It is common knowledge that any serious investor should have at least 10% of thier money in gold. I heard this way back in the eighties and it seemed like a smart thing to do, at the time. A lot of people buried their gold, waiting for the economic crash that never came and are now are too old (or worse) to remember where they buried it.
    2 Mar 2013, 11:42 AM Reply Like
  • Ray Lopez
    , contributor
    Comments (1537) | Send Message
     
    LOL thanks Eagle for that story. Got gold? Got metal detector?
    2 Mar 2013, 02:23 PM Reply Like
  • Evanku2007
    , contributor
    Comments (28) | Send Message
     
    How is it possible for there be an outflow of 10 million tons/day of gold?? Thats a LOT of gold haha! Am i missing something here??
    2 Mar 2013, 05:38 PM Reply Like
  • blowforhome
    , contributor
    Comments (7) | Send Message
     
    Yes you are. M stands for metric not million.
    4 Mar 2013, 07:50 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    I think its the "smart money" you know the fat cats getting out of paper gold..the GLD..and getting into real gold..Bullion....I think we will see big bullion movements..mainly to the east....
    4 Mar 2013, 12:59 PM Reply Like
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