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« Gold Prices Update 06 June 2010 | Main | A Question and Answer from Jim Sinclair »

GLD NAV Hits All Time High

GLD Logo 25 February 2010.jpg

Yet another record for the SPDR Gold Trust ETF GLD) as its purchasing activity just boggles the mind. Zooming around the air waves as we tend to do, we came across this 'take' on GLD by Tyler Durden in an article which appeared on

The total gold tonnage making up the GLD NAV has just hit an all time high, at 1,289.8 tonnes, even as the actual fixing price of both gold and of the the GLD ETF have been relatively flat after hitting an all time high on May 12, incidentally a day when GLD had 80 less tonnes in holdings than it does today. In less than a month GLD alone has presumably acquired 80 tonnes of gold backing up its intrinsic value. Also notable is that today GLD increased its gold holdings by 21.3 tonnes, despite a decline in both PM fix and GLD. Keep in mind that global weekly gold mine production is estimated at 30 tonnes. Did GLD acquire 66% of all gold produced in the last week today alone? We wonder if the WSJ article debating where demand for gold comes, and going as far as blaming gold to be a ponzi, is aware of this fact.

As for the question of how a seemingly relentless desire to acquire gold, translating in a 21 tonne increase in GLD gold holdings translates into a drop in the price of gold, we will just leave that one open.

An interesting view of GLD, which at this rate of accumulation will soon see them as the biggest holders of gold out there, which is a scary thought.

Have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

The latest trade from our options team was slightly more sophisticated in that we shorted a PUT as follows:

On Friday 7th May our premium options trading service OPTIONTRADER opened a speculative short term trade on GLD Puts, signalling to short sell the $105 May-10 Puts series at $0.09.

On Tuesday the 11th May we bought back the puts for just $0.05, making a 44.44% profit in just 4 days.

Accumulated Profits from Investing $1000 in each OPTIONTRADE signal 14 May 2010.jpg

Recently our premium options trading service OPTIONTRADER has been putting in a great performance, the last 16 trades with an average gain of 42.73% per trade, in an average of just under 38 days per trade. Click here to sign up or find out more. have been rather fortunate to close both the $15.00 and the $16.00 options trade on Silver Wheaton Corporation, with both returning a little over 100% profit.

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Reader Comments (1)

Look in the prospectus...GLD doesn't have to buy any gold and probably has none or very, very little at best...big fraud but legal. Why don't they audit or have independent inventory?
Doesn't take a genius to figure out. If $ didn't go into GLD the price of gold would be much highr. Why don't you expose this fraud if your experts...takes a little work.

June 6, 2010 | Unregistered CommenterED durkin

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