streetTRACKS Gold Shares (GLD)

All Comments on GLD

  • commenter
    buyitcheaper
    Aug 18 08:50 PM
    Options as a 'Gold'en Opportunity [view article]
    I agree I'd go long with the GLD and short the GDX before the converse... it's a "real" asset vs. a paper equity ultimately. Reply
  • commenter
    User 218405
    Aug 18 08:23 PM
    Wall Street Breakfast: Must-Know News [view article]
    We wouldn't have to talk abot opec if we pushed harder for solar, windmills, nuclear energy, and yes bullet trains across this vast U.S.A.. I'm sure France , Germany or Japan would help us build these modern 20th Century trains. Then we could tell the Muslims to shove their oil where the sun doesn't shine. Reply
  • commenter
    CyclePro
    Aug 18 07:50 PM
    My Website
    The Disconnect Between Supply and Demand in Gold & Silver Markets [view article]
    If Morgan Stanley went so long without holding sufficient physical silver/gold while still charging investors for storage fees, then how do you know that GLD and SLV are so honest? (disclosure: I hold GLD and/or SLV shares and/or options) I mean, what assurance do you really have that the managers of GLD & SLV are not doing exactly what MS was doing? Let's face it, we're all just blissfully ignorant of what may really be happening behind the scenes. Reply
  • commenter
    WolfDog
    Aug 18 07:00 PM
    The Bedrock Case for the Return of the Gold Bull [view article]
    This is a very thoughtful article. I accept the basic premise that central banks (and the politicians) will inflate to prevent deflationary tendencies of massive credit liquidation. This shakeout in gold is healthy and part of an on going bull market in AU. And 2 points: 1/ As the year winds down, hedge funds who have been long commodities have locked in some gains in order to preserve their performance fee paydays - this has nothing to do w/ the major trend of the assets, it is just a short term supply/demand factor 2/ Gold is still very cheap relative to oil. Oil is not going back to $20 or $50 soon........maybe 15 years away but the lead times on alternative energy investments are too long. So since oil will remain relatively high in nominal dollar terms, gold will also. Reply
  • commenter
    mark mchugh
    Aug 18 06:56 PM
    The Disconnect Between Supply and Demand in Gold & Silver Markets [view article]
    Who's the new kid? (244350)

    If you're not publishing somewhere, you should be. Or do you prefer the cloak of anonymity for this discussion?     Reply
  • commenter
    jayson333
    Aug 18 06:16 PM
    The Disconnect Between Supply and Demand in Gold & Silver Markets [view article]
    So far not mentioned here is the "supply chain" theory. COMEX trades in 1000oz bars, but retail investors want coins or at most 100oz bars. Soaring retail demand has cleaned out the retail supply chain, and it will take time and some expense to convert more 1000oz bars into coins.

    This can explain short term shortages in coin shops, however, it does not explain the disparity between retail demand and COMEX prices...

     Reply
  • commenter
    woodsey
    Aug 18 06:16 PM
    Wall Street Breakfast: Must-Know News [view article]
    Every little drop helps. Reply
  • commenter
    sbenard
    Aug 18 05:54 PM
    My Website
    On the Dollar and Commodities: Currencies Move Because We Let Them [view article]
    One more thought. In a day when there are stock index ETFs that short the market, why would ANYONE just sit and wait through an economic downturn! We can be either long or short the market at all times, benefiting from both bull and bear markets! Learn to read the charts! Reply
  • commenter
    sbenard
    Aug 18 05:50 PM
    My Website
    On the Dollar and Commodities: Currencies Move Because We Let Them [view article]
    Good article, Chris! I have been making the case for some time on my own blog that the "buy and hold" strategy of sitting tight through deep dips in stocks is likely to create steep losses that will take many years to dig out of. Your last chart makes that point very powerfully! Reply
  • commenter
    User 244350
    Aug 18 05:37 PM
    The Disconnect Between Supply and Demand in Gold & Silver Markets [view article]
    But, of course, you are also subsidizing leases, so that smaller derivatives dealers will actually issue the futures contracts, not you. So, it will cost you a bit more. The leases are based on the total value of the gold that is supposed to be in your vault (but really isn't), so this constitutes the biggest cost of your manipulation. If you are paying 3% annually to the lessor-dealers, it will cost you another $21,050,701. Still, a matter of millions, not billions. With this small expenditure, you can unwind hundreds of billions of dollars worth of short positions at a profit, as the fast money traders at the public and "dark pool" futures exchanges, desperately try to unload their long positions. Reply
  • commenter
    User 244350
    Aug 18 05:31 PM
    The Disconnect Between Supply and Demand in Gold & Silver Markets [view article]
    Oh, and did I mention that the $7,016,900 is the total cost of the gold purchased and put in a vault to guard against demands on delivery. Did I mention that you've collapsed the price by 20%. So, you can sell the gold, when you are finished, and the net cost to the bank is only $1,403,380. Not very much. That is how the futures market can be used to manipulate the price of gold. Reply
  • commenter
    martin3
    Aug 18 05:28 PM
    In Light of Peak Oil, Financial Diversification Is a Bad Idea [view article]
    sorry to say but you are just plain uneducated about oil.
    even if you assume there will be new ways to tap existing reserves and new deposits to exploit the bottom line is growth in demand is exponential while supply is at best linear. you do the math     Reply
  • commenter
    User 244350
    Aug 18 05:28 PM
    The Disconnect Between Supply and Demand in Gold & Silver Markets [view article]
    Actually, let's finish the math. On June 23rd, the ECB sold 30 tons of gold. The price immediately dropped from about $887 down to $867, a loss of $20. But, let's say you released 90 tons of paper gold, on one day? Extrapolating, this means the drop would be about $60. This would drop the price from $970 down to $910, and that would start the chain reaction. Stop loss orders, set by momentum traders, would suddenly be triggered. For example, Dennis Gartman and the billions of dollars his hedge fund clients had wrapped up in long positions, were stopped out at $913. When all his clients sold, that would drop the price another $10 or so, and another set of hedge funds would sell out. With each trigger, more would be sold, and the price would drop. It would drop more and more, until it reached where it now is, where there aren't very many short term thinking hedge funds left in the market. Now, there are 32,150.7466 troy ounces per metric ton. It would require 9/10ths of a metric ton, sitting in a bank vault, to safely create 90 tons of paper-fake gold. But, you don't need to create a whole year's worth of futures contracts. Your longest subsidized lease term is going to be 3 months. So, we can divide the 9/10th of a ton, by 4. It required only .225 tons of real gold, held in a bank vault, kept there to cover any possibility of delivery demands, to torpedo the entire gold market down to where it now stands. That means it would cost a determined person or entity merely $7,016,900 to do exactly the amount of damage that has been done to the gold market thus far. A matter of millions, not billions. And, it could save the banks hundreds of billions of dollars in payouts if, indeed, some really big disaster that we don't know about, is going to send gold prices to the moon. Reply
  • commenter
    kosmos
    Aug 18 05:03 PM
    The Disconnect Between Supply and Demand in Gold & Silver Markets [view article]
    DavyT paints a picture with a rather broad brush. I do not agree that most bullion dealers are holding inventory unwilling to sell at a loss. Yet, his comments cannot be totally discounted.

    There are basically 3 levels of bullion dealers: 1) smaller coin shops in little town America/mom & pop op's 2) mid-level dealers with more capital, and better cash flow. Many will be in metropolilitan areas where comptetition is significant 3) National level bullion/coin dealers with substantial capital & a professional staff.

    When gold & silver stops were run overnight in the Asian market, many level 1, and a few level 2 bullion dealers holding physical metals, likely are being squeezed by price. Nice time to put up the "go fishing sign" or execute other avoidance strategies in the short term. The strategy most will take is to keep the shop doors open so they can continue to offer a two way market cycle based upon new purchases of bullion from local sources. Meanwhile, their underwater physical positions will be kept in the safe until prices rise back to a profitable level. A final option is to run all deals through a level 3 dealer, assuming there is gold & silver available for physical delivery.

    Considering the options at each market level, DavyT is likely to be partially right. Overall, his initial statement is too broad to defend.

    Moderate comments from a retired coin/bullion dealer with 30+ years experience. I have no skin to protect in this dialogue. Hoping to lend a more balanced view point.

    .     Reply
  • commenter
    ico
    Aug 18 05:00 PM
    The Disconnect Between Supply and Demand in Gold & Silver Markets [view article]
    Let all who have invested in gold and thereby own existent metal demand delivery, then watch this tower of babel fall over. Reply
Loading...
Symbols:
Authors:
Quick Links: