Seeking Alpha

Most troubling for gold, says Barclay's Suki Cooper, is the flow of funds out of gold ETFs (GLD)...

Most troubling for gold, says Barclay's Suki Cooper, is the flow of funds out of gold ETFs (GLD) as this money "has tended to reflect longer-term 'stickier' investor interest." If the buy-and-hold money leaves, gold's fate could be left with the fast-money crowd. It's an interesting argument, but we'll call it "unproved" at this point.
Comments (14)
  • Not very convincing. A lot of hedge funds use GLD for exposure - and by definition these are not 'long term" investors. Mostly these are momentum oriented with a time horizon of 30 days - maybe 3 months tops. No conviction either - after all folks who have MBAs struggle with gold - because there is no PE or dividend yield to analyze.
    These types of players have been thoroughly flushed out over the last 18 months.
    11 Mar 2013, 03:32 PM Reply Like
  • Perhaps if they tracked the money flows into funds fully backed by metals instead of paper promises or checked on physical buying they might gain a bit of insight.
    11 Mar 2013, 03:32 PM Reply Like
  • Good. Let the speculators get out from the gold market manipulation. That will make it cheaper for us smart citizens around the globe like the Chinese and Indians to buy the physical bullion instead of that pathetic westerner's virtual toilet paper they call GLD. You can bet your last gram of the shiny yellow metal that the western world's monetary system shenanigans are gonna bite them in the arse again...it's just a matter of time. Either that or they print so much currency that it becomes worthless (come to think of it they are already doing that....)
    11 Mar 2013, 03:32 PM Reply Like
  • How original. You just so happen to be on a "pathetic westerner" website, discussing a commodity as it is traded on a "pathetic westerner" exchange.

     

    Pathetic.
    11 Mar 2013, 03:48 PM Reply Like
  • Well, catamount, there is something true about your comment. But you just attack the person, not address the issue.

     

    I want to commend you for a very constructive and enlightened response. Your IQ must be higher than 200---even that may be an underestimate because your IQ has blown off any scales.

     

    Let's get back to the issue and point out the fact that Japan, the U.S., ECB, and Bank of England are all engaged in creating huge money supply far exceeding the growth of the economy. There is no dispute about what they are doing.

     

    The ring, led by the US and Japan, believes the fundamental common sense (no free lunch) and accountable monetary policy are wrong (at least not applicable to them). I think they are very smart. Because they know intelligent westerners like you are fully behind their maniac actions. As long as people don't have any suspicion about the scam, Ponzi will prevail.

     

    You are not alone. For instance, I have not heard even a single word of concern, let alone criticism, against FED's QE-infinity plan, from the mouth of Warren Buffet, who acts more like a cheerleader than a prudent investor in recent years. He is probably one of the most respected investors in the world. Yet he is more than willing to be a conspirator in the scam rather than to speak out against the dollar debasement policy. Why should he care? Government always takes care of them first in the event of catastrophic economic crisis and chaos, like in 2008-2009.

     

    By the way, the westerners are practically all using the computers made in China with components mainly made in Asian countries. It will be a good start if you dump the computers you use and buy only merchandise made in the western countries.
    12 Mar 2013, 09:42 AM Reply Like
  • The real long term, "sticky" players are the Central Banks and the physical buyers in Asia and Europe.
    11 Mar 2013, 03:34 PM Reply Like
  • I am a sticky player...I do not buy GLD or SLV..that is a day trader stock...that is all it is....not backed by gold that is for sure...I agree all the metal will be shipped east...then the tables will be turned over...as the east wants the power of a reserve currency ..and with the real gold they will get it...
    11 Mar 2013, 03:50 PM Reply Like
  • According to hedge fund manager Ben Bernanke gold is a major buy for today, tomorrow and beyond.
    11 Mar 2013, 04:15 PM Reply Like
  • The interesting thing to focus on is this; There was a large outflow of actual physical gold from the ETF. So - who were the buyers?
    11 Mar 2013, 04:28 PM Reply Like
  • that outflow probably was owned by Germany...It was "leased" to the GLD scam by some bank????? I bet that is where all those tones are going....going..and gone...I also think some of those big day traders are getting out of the game stock (GLD)..and getting into the real metal...bullion in hand is worth more than paper in the hand..unless you are in a bathroom...
    11 Mar 2013, 04:41 PM Reply Like
  • Maybe the out flow of funds from the ETFs are realizing the paper fraud and going physical. That would seem bullish, to me. I don't understand why anyone would take on risk thru manipulative paper products when the certainty of physical carries minor issues (converting back to currencies if/when needed).
    11 Mar 2013, 05:40 PM Reply Like
  • Not ONE gold bear in all the gallery? Geezo,how can I pick anyone apart 'cept the author. I did sell my ETF's and am sneaking the money into gold and silver at every turn. At coin shows I turn silver bars into silver eagles and not really concerned about the 'float' (difference from week to week or day to day) These levels in PM's will be a distant memory. The winds of war are stirring,, war in politics, hot war, cold war, and so on...the middle east, and from the east also. Usta say, "Go west young man:, now I say, "buy gold (and silver) young man".

     

    Capt. Brian
    The Lost Navigator,

     

    PS See my stock talks and money where mouth is.
    12 Mar 2013, 01:00 AM Reply Like
  • What and where is the cheapest way to buy physical gold [bullion coins?]
    12 Mar 2013, 05:56 AM Reply Like
  • The central banks of Russia, China and many other big buyers will dwarf the hedge funds, the amateur specs and even the tinier "buy and hold" crowd. These are the buyers which will dictate the outcome. Not the little boys like Soros and friends. Also I wouldn't dismiss the private investors who hold physical gold. They won't be convinced to sell anytime soon. If gold were to take a big fall here, below the $1,400 range let say, we might expect problems from deflationary debt defaults, vaporizing economies worldwide. Lets not forget that gold is the barometer of currencies and international management of debts. But with the currency devaluation wars just getting started, I doubt that. The only way for the US to hold the line on its bonds is to devalue and keep the rate of interest less than inflation.
    12 Mar 2013, 07:22 AM Reply Like
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