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Bloomberg's "Chart Of The Day" Is The Latest Amusing Attempt To Create A Gold Selling Frenzy
The barrage to get investors to dump their gold is on in full force, after one after another media outlet takes turns to guarantee that a day of profit taking in an asset that two days ago was trading at its time highs, and experienced an uninterrupted 30% run in the past year, means the rally is over pretty much in perpetuity. The motive is clear: get people to abandon the safety of hard assets and throw their lot into the ponzi scheme, based on one week of minimal inflows following endless outflows after the first and certainly not last Flash Crash. The latest such attempt comes courtesy of Bloomberg's chart of the day, whose disturbed logic is just left of alchemy. To wit: the shares outstanding of the GLD etf have declined, therefore you must acquit, or dump your gold. Immediately. And we wish we were kidding.
From Bloomberg:
Gold investors are showing “a lack of conviction” about the potential for further price gains after a decade-long surge, according to Vadim Zlotnikov, Sanford C. Bernstein & Co.’s chief market strategist.
The CHART OF THE DAY illustrates how Zlotnikov drew his conclusion: by comparing the price and shares outstanding for the SPDR Gold Trust, the world’s biggest exchange-traded fund backed by gold bullion.
While the ETF’s price climbed 13 percent from the end of June through yesterday, the total number of fund shares dropped by 2.8 percent. There were 421.7 million shares as of yesterday, according to data compiled by Bloomberg.
The decline contrasted with a trend since 2007 in which gold prices and the share count rose together, Zlotnikov wrote today in a report. The trust’s outstanding stock almost tripled during the period as gold soared to records, capping the metal’s five-fold increase in the past decade.
“We have been observing some loss of steam behind gold ETF inflows,” he wrote. “It seems particularly noteworthy” that the Federal Reserve’s decision to carry out a second round of bond purchases, or quantitative easing, failed to boost demand for the SPDR shares, the report said.
The gold trust creates and redeems stock in blocks of 100,000 shares, known as baskets, by trading with authorized institutional investors. The number of shares outstanding peaked at 433.9 million at the end of last year’s second quarter.
Next up: Bloomberg's chart of tomorrow, will show why the color of the solar wind as interpreted by Bob Doll, means today's freak red close will be the one and only correction of the year.
As for gold, investors are hardly concerned. After all, Buy the Fucking Dip works for other asset classes, not just stocks.
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SUCK SHIT NEWBIES.... US DOLLAR IS KILLING YOU ALL!
GOLD IS DOOOOOOOMED!
It's only doomed if just the rich people get it. Then it will be used in a good money for bad scam after all your bad money is debased and replaced by the IMF's Scum Drawing Rights.
Dear ZH Community, Please provide some advice. I would like to purchase some Gold and Silver today, my first purchases. I have decided to buy Eagles just for personal reasons, realizing that there is a premium. My questions are: Regarding Gold, Does anybody care about "Dates of our Choice" versus a specific year and "Original Mint Tubes" or "Brand New Coins". I would prefer the "cheaper" gold unless all of the other stuff is of any specific concern or value. Also, if the premium is roughly the same, is there value in purchasing .5 oz versus 1 oz. Regarding Silver, Monster boxes, sealed or unsealed. Again, I would prefer the "cheaper silver" unless there is some express advantage in the purchase of a mint sealed box. From your previous recommendations, I understand that Tulving is a reputable house from which to purchase. Yes?
Dear ZH Community, Please provide some advice. I would like to purchase some Gold and Silver today, my first purchases. I have decided to buy Eagles just for personal reasons, realizing that there is a premium. My questions are: Regarding Gold, Does anybody care about "Dates of our Choice" versus a specific year and "Original Mint Tubes" or "Brand New Coins". I would prefer the "cheaper" gold unless all of the other stuff is of any specific concern or value. Also, if the premium is roughly the same, is there value in purchasing .5 oz versus 1 oz. Regarding Silver, Monster boxes, sealed or unsealed. Again, I would prefer the "cheaper silver" unless there is some express advantage in the purchase of a mint sealed box. From your previous recommendations, I understand that Tulving is a reputable house from which to purchase. Yes?
Dear TT,
If you are buying strictly for bullion purposes, I would completely ignore dates and just go with "dates of our choice" --- if you are buying from either Tulving or APMEX, they are not going to sell you any inferior bullion coins, i.e., their bullion coins will all be pretty much in exactly the same condition, whether from the latest year or not.
As for Tulving, I have never done any business from them, but they have a longstanding and apparently stellar reputation from all that I have read about them.
Thank You akak. As to the .5 or 1 oz in the gold. Do you see a value in the .5 oz? akak, if you do silver, what about sealed versus unsealed boxes?
Sorry about the double thing.
Gold monthly chart looks parabolic and is a long
way from the long term trend line.
Long term price action is also converging.
Chart at my blog.
http://stockmarket618.wordpress.com
Why would anybody in their RIGHT mind invest in such a diabolical 3-card monte game as GOLD SPDR shares? Huh? This is nothing but a SCOAT=SCam of All Time!! Its steeped in the same DERIVATIVE shizz that crushed most investors and whole countries (iceland): CDOs; dense explanations, insider connects....