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Why Gold is jumping?
- Thread starter Daal
- Start date
Quote from tomcole:
Wow, all this big talk. How much gold did you buy?
Ever think the ETF is taking gold off the market and if the ETF starts to see liquidation, so does gold?
Good to see Tom Cole is still his usual uplifting self. What's the matter, sir, did Santa stiff you on the gifts this year?
When someone says they loaded up the truck, to me, that means they bought 1,000+ lots. Most people who do that, dont talk about it. Those who do, generally, buy 10 ounces and think they're a player.
I day-trade gold, so, no open positions overnight.
The ETF issue can be seen on their website, http://www.streettracksgoldshares.com/index.php?noMsg=true, if you look on the left it says how much physical gold they hold - currently 255 tonnes or some $4.2 billion worth. In the gold market, thats a big number that has been pulled out of available supply.
If it wasnt held by the ETF, it would be floating around looking for a home. So, if the ETF slows their buys next year, or suffers some liquidation by folks looking for better returns, the amount of gold available for sale will increase on a YOY basis. Think of it as folks getting physical stock certificates and the impact that has on shorts - imagine if Fidelity started demanding share certificates for all their holdings - it would cause a liquidity issue which would firm prices. Thats why next years ETF gold buys become important.
Part of silver's price increase is based upon speculation that a silver ETF would absorb similar dollar amount as the gold ETF did, causing a real physical squeeze.
I day-trade gold, so, no open positions overnight.
The ETF issue can be seen on their website, http://www.streettracksgoldshares.com/index.php?noMsg=true, if you look on the left it says how much physical gold they hold - currently 255 tonnes or some $4.2 billion worth. In the gold market, thats a big number that has been pulled out of available supply.
If it wasnt held by the ETF, it would be floating around looking for a home. So, if the ETF slows their buys next year, or suffers some liquidation by folks looking for better returns, the amount of gold available for sale will increase on a YOY basis. Think of it as folks getting physical stock certificates and the impact that has on shorts - imagine if Fidelity started demanding share certificates for all their holdings - it would cause a liquidity issue which would firm prices. Thats why next years ETF gold buys become important.
Part of silver's price increase is based upon speculation that a silver ETF would absorb similar dollar amount as the gold ETF did, causing a real physical squeeze.
Dear Tom,
The size of my truck is of no relevance. But it appears you are attempting to engage me in a truck measuring contest. For some reason, you must be insecure about your own truck size??
I am sorry that you don't agree with my assessment of gold or my "big" talk? Although your compelling evidence regarding "uh, peole are gonna like sell etf's and like, the gold price will like go down" has me seriously re-considering my long position in gold.
Thank you for contributing
The size of my truck is of no relevance. But it appears you are attempting to engage me in a truck measuring contest. For some reason, you must be insecure about your own truck size??
I am sorry that you don't agree with my assessment of gold or my "big" talk? Although your compelling evidence regarding "uh, peole are gonna like sell etf's and like, the gold price will like go down" has me seriously re-considering my long position in gold.
Thank you for contributing
I think the real reason was a combination of this
http://www.energybulletin.net/8379.html
and a Fed. that has no other choice
recall that the Fed. will stop reporting M3 3 weeks before PetroEuros are bought and the dollar gets dumped...
Big Al wouldn't want to leave with an enormous % increase in M3 spoiling his getaway party
http://www.energybulletin.net/8379.html
and a Fed. that has no other choice
recall that the Fed. will stop reporting M3 3 weeks before PetroEuros are bought and the dollar gets dumped...
Big Al wouldn't want to leave with an enormous % increase in M3 spoiling his getaway party