Gold 'Bar Hoarding' vs. the ETFs

About: SPDR Gold Trust ETF (GLD)
by: Tim Iacono

In looking over the recently released Gold Demand Trends from the World Gold Council, it quickly becomes clear how the gold price could have risen so sharply in recent months with virtually no additions to the related ETFs that are now sitting at or below the levels seen during the summer while the gold price is more than $100 an ounce higher.

As indicated in red above, “bar hoarding” (i.e., mostly physical demand from Asia) has soared over the last year, taking up a good deal of the slack from generally weak demand by ETFs this year, that is, save for Q2 when the wheels were falling off over in Europe.