aknahow's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/220259/comments http://seekingalpha.com/article/171902/comments?source=feed#comment-749764 749764
If there is sufficient premium, authorized participants sell short shares, deliver gold and get new ly issued shares with which to cover their shorts.

If shares sell at a discount the authorized participants short gold, deliver shares in return for their book value in gold which they use to cover their gold shorts.]]> Sat, 07 Nov 2009 09:54:38 -0500
If there is sufficient premium, authorized participants sell short shares, deliver gold and get new ly issued shares with which to cover their shorts.

If shares sell at a discount the authorized participants short gold, deliver shares in return for their book value in gold which they use to cover their gold shorts.]]> http://seekingalpha.com/article/96079/comments?source=feed#comment-259446 259446
When you say, ". As part of the process, instead of going out and buying stock to be placed in the fund, gold bullion is purchased and placed in the trust.", logic would demonstrate that buying shares in the market would not add to the amount of shares outstanding. The ETF must issue new shares. It must have gold backing behind the shares issued. So a delivery of physical must take place first. The authorized participants don[t deliver physical and take shares because they ar good guys. They deliver to get new shares to cover the shares they sold short. They only sell short GLD shares when they are at a premium to their gold backing.

]]> Fri, 19 Sep 2008 15:48:39 -0400
When you say, ". As part of the process, instead of going out and buying stock to be placed in the fund, gold bullion is purchased and placed in the trust.", logic would demonstrate that buying shares in the market would not add to the amount of shares outstanding. The ETF must issue new shares. It must have gold backing behind the shares issued. So a delivery of physical must take place first. The authorized participants don[t deliver physical and take shares because they ar good guys. They deliver to get new shares to cover the shares they sold short. They only sell short GLD shares when they are at a premium to their gold backing.

]]> http://seekingalpha.com/article/96079/comments?source=feed#comment-257794 257794
Only when shares sell at a sufficient premium to the value of physical gold behind each share, will new deposits of gold be made.

And the process involves not creating new shares but selling short the shares which are at a premium to gold, buying gold with the proceeds and depositing the gold in the ETF to obtain newly issued shares.

"As is the case for stock funds, when there is more demand for shares than currently exist, the fund must create new shares. As part of the process, instead of going out and buying stock to be placed in the fund, gold bullion is purchased and placed in the trust."

More demand for shares should or could cause the shares to sell at a premium. Thus in part what you wrote is true. The rest however is not really accurate or up to your usual standard.]]> Thu, 18 Sep 2008 08:13:06 -0400
Only when shares sell at a sufficient premium to the value of physical gold behind each share, will new deposits of gold be made.

And the process involves not creating new shares but selling short the shares which are at a premium to gold, buying gold with the proceeds and depositing the gold in the ETF to obtain newly issued shares.

"As is the case for stock funds, when there is more demand for shares than currently exist, the fund must create new shares. As part of the process, instead of going out and buying stock to be placed in the fund, gold bullion is purchased and placed in the trust."

More demand for shares should or could cause the shares to sell at a premium. Thus in part what you wrote is true. The rest however is not really accurate or up to your usual standard.]]> http://seekingalpha.com/article/83564/comments?source=feed#comment-197267 197267


Wording could be better in some parts. Anyone really think this is clear?


JT: I estimate that Duluth can spend a $1.5 billion to build 40,000 tons a day, and institute a dividend in 2018 when it goes from $20 to $40 and pays off 10% debt in 2019 and half a billion in cash in 2020 year end. And I estimate that from 2018 on, it’s trading at little more than $2 a share, which I think would be worth $30. So, I am saying $15.

Why not say, "And I estimate that from 2018 it will be trading at $30 up from a bit more than $2 now. So I am saying $15 as a target.]]> Wed, 02 Jul 2008 11:47:44 -0400


Wording could be better in some parts. Anyone really think this is clear?


JT: I estimate that Duluth can spend a $1.5 billion to build 40,000 tons a day, and institute a dividend in 2018 when it goes from $20 to $40 and pays off 10% debt in 2019 and half a billion in cash in 2020 year end. And I estimate that from 2018 on, it’s trading at little more than $2 a share, which I think would be worth $30. So, I am saying $15.

Why not say, "And I estimate that from 2018 it will be trading at $30 up from a bit more than $2 now. So I am saying $15 as a target.]]> http://seekingalpha.com/article/83353/comments?source=feed#comment-196560 196560 Tue, 01 Jul 2008 10:55:21 -0400