If you have not taken some time out to read through the World Gold Council’s recent report on the gold market ( see my earlier post from today for the link) I would strongly urge you do so. It is an excellent and illuminating read.
I already made some comments in regards to the section on ETF’s.
In tracking the largest of these gold ETF’s, namely, GLD, this afternoon is just more confirmation of the accuracy of that report. They have come to exactly the same conclusion as we have over here – namely that money is being pulled out of GLD in order to take advantage of obtaining better yields elsewhere, specifically in equities.
Notice that ever since that big upside day in gold last week (Nov 7), when we got a massive short covering burst of buying on the heels of the jobs report, the reported tonnage in gold has continued to drop. Simply put, investors are taking advantage of the moves higher in the price to exit and put the money to work elsewhere.
Here is the latest chart of GLD and it is a doozy. Since the day just before the big price surge last Friday, GLD has disgorged another 12 tons of the metal. It’s holdings are now down to 720.62 tons, the lowest level since September 2008. Interestingly enough, it is back to levels last seen PRIOR to the onset of any of the QE programs by the Federal Reserve.
This post was published at Trader Dan Norcini on Thursday, November 13, 2014.
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