MNeagle
14th September 2010, 05:04 PM
Submitted by Tyler Durden on 09/14/2010 17:04 -0500
Exchange Traded FundGold SpotInternational Monetary Fund
In one day, GLD added 60% of the gold that Bangladesh bought from the IMF a week ago and made major headlines. Of course, we do hope that the ETF actually did buy the 6 tons of gold, instead of just some logic gates being triggered by a few electrons here and there, causing a screen to output a data set that was previously goalseeked, while no actual gold ever exchanged hands. But that of course would be improper. Either way, GLD's NAV in tons is now back to 1298.7. Yet, even with gold spot actually rising to a new all time ever high, the fund is still about 22 tons short of its peak holdings of 1320.4 recorded on June 30, when spot was $1,244, or about 1.7% lower. This means that in a perfect world, GLD will soon need to buy up quite a bit of the gold it sold recently (and then some), and thanks to the magic that are "convex" events, the resulting feedback loop will only lead to an even greater jump in the price of gold, especially if, as rumors are suggesting, there is a shortage of the actual physical for delivery.
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/shirakawa/GLD%20Tons_0.jpg
link (http://www.zerohedge.com/article/gld-etf-adds-6-tons-gold-today-still-22-tons-away-all-time-high?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedg e+-+on+a+long+enough+timeline%2C+the+survival+rate+fo r+everyone+drops+to+zero%29)
Exchange Traded FundGold SpotInternational Monetary Fund
In one day, GLD added 60% of the gold that Bangladesh bought from the IMF a week ago and made major headlines. Of course, we do hope that the ETF actually did buy the 6 tons of gold, instead of just some logic gates being triggered by a few electrons here and there, causing a screen to output a data set that was previously goalseeked, while no actual gold ever exchanged hands. But that of course would be improper. Either way, GLD's NAV in tons is now back to 1298.7. Yet, even with gold spot actually rising to a new all time ever high, the fund is still about 22 tons short of its peak holdings of 1320.4 recorded on June 30, when spot was $1,244, or about 1.7% lower. This means that in a perfect world, GLD will soon need to buy up quite a bit of the gold it sold recently (and then some), and thanks to the magic that are "convex" events, the resulting feedback loop will only lead to an even greater jump in the price of gold, especially if, as rumors are suggesting, there is a shortage of the actual physical for delivery.
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/shirakawa/GLD%20Tons_0.jpg
link (http://www.zerohedge.com/article/gld-etf-adds-6-tons-gold-today-still-22-tons-away-all-time-high?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedg e+-+on+a+long+enough+timeline%2C+the+survival+rate+fo r+everyone+drops+to+zero%29)