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GLD Files 239.3 Million Shares Shelf, Opens Purchase Capacity For Up To $28 Billion More In Gold
The "other" gold ETF, GLD, has just announced it is filing a shelf statement for 239.3 million. Since as of May 26, 2010, 390,400,000 Shares were outstanding and the estimated NAV per Share as determined by the Trust for May 26, 2010, was $118.58, this means GLD anticipates increasing by over 60% over time. Also assuming a full purchase implies the GLD will end up acquiring over $28 billion in gold, assuming it has physical backing to its claims as it represents. The Use Of Proceeds as defined: "Proceeds received by the Trust from the issuance and sale of Baskets consist of gold and, possibly from time to time, cash. Pursuant to the Trust Indenture, during the life of the Trust the gold and any cash will only be (1) held by the Trust, (2) distributed to Authorized Participants in connection with the redemption of Baskets or (3) sold or disbursed as needed to pay the Trust’s ongoing expenses."
And some recent updates on GLD:
As at March 31, 2010, the amount of gold owned by the Trust was 36,324,952 ounces with a market value of $40,520,483,790 (cost – $30,289,189,919), including gold receivable of 166,431 ounces with a market value of $185,653,480 based on the London PM fix on March 31, 2010.
As at March 31, 2010, the Custodian held 36,158,483 ounces of allocated gold in the form of London Good Delivery gold bars in its vault and 38 ounces of unallocated gold, excluding gold receivables, with a market value of $40,334,830,509 (cost – $30,103,536,538). Subcustodians held nil ounces of gold in their vaults on behalf of the Trust and 166,431 ounces of gold was receivable by the Trust in connection with the creation of Baskets (which gold was received by the Custodian in the normal course of business).
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physical audit plz
+1, a full and complete independent SURPRISE audit at all storage facilities. Anything less is like believing Ft Knox has all the gold, yet no audit for many decades.
If you do not physically hold it you do not own it.
Buy physical.
Audit your "fund" by regular visits to your safe deposit box.
Problem solved.
Or better yet, by visits to your home safe, or your cache buried in the back 40, or hidden in some other secure location outside of the banking system. The best method of securely owning precious metals is in one's own physical possession, COMBINED with tight lips. Those who blab about their precious metals might almost just as well store it on the front porch.
By the way, I am surprised that the hysterical gold-haters and desperate defenders of paper gold Ponzi schemes like the GLD have not yet shown up en masse to swarm and attack this thread ("NEVER store your gold at home --- you'll lose it! You'll die tomorrow and nobody will ever find it! Blah blah blah, LOL!) But mark my words, they will, they will!
Can someone articulate the conspiracy/fiat collapse story of how this fund will collapse, please? I have too much in this fund and need the Cormac McCarthy version spelled out for me sometimes.
Guest Post: GLD And SLV: Disclosure In The Precious Metals Puzzle Palace
www.zerohedge.com/article/guest-post-gld-and-slv-disclosure-precious-metals-puzzle-palace
Damn. Thanks! So, how to understand whether a gold dealer is legit. I got ripped off once by a diamond dealer in Boston 15 years ago trying to resell my exfiance's engagement ring (at least I got it back, bought a car with the proceeds. But still, I got taken, and I'm still pissed about it... more at her than anything else, but that's another story).
Tulving. Legit and cheap.
+1 Tulving
APMEX also good.
I've bought from Apmex, Kitco, and SuisseGoldCorp. The key is to shop around, each online dealer offers either a better price, unique products, or fastest delivery. Apmex is my favorite these days.
Rich
Simple. Everyone demands physical delivery. From COMEX and every other exchange.
http://www.goldensextant.com/GLD.html#anchor501777
The Moral of the Story
So what are we to think about all this? Well, that depends on who we are.
If we are the World Gold Council, we might consider moving GLD’s gold to a safer neighborhood. Failing that, we might consider beefing up those risk factors in the Prospectus.
If we are an institutional fiduciary, we might consider testing the exchange feature to make sure we can access our gold. Once we get it, if we get it, we might consider hanging on to it. Otherwise, we might want to ring up Legal and inquire as to our exposure if the GLD gold is blocked or seized.
If we are an institutional principal, it’s our money, we’ll do what we want.
If we are an individual investor, we might just ask ourselves: Why are we here?
What effect will this have on the tungsten market?
Nothing. They won't even spend the money to buy tungsten anymore - they'll just "store" hot air instead.
I only see you on gold posts!
Not that there's anything wrong with that!
Thank goodness GLD doesn't have all that "physical" gold like Sprott's. What a scam actual gold is ;>)
Observed earlier today that units of Sprotts PHYS (American funds) and PHY.U (Canadian Funds) were at the same price in their respective currency, which suggests that the US is at a premium but that makes no sense so I am clearly missing something.
screenshot of realtime quote from earlier this afternoon
http://i49.tinypic.com/71o476.jpg
(the currency stated in the above chart is CDN$ for PHY.U and $ for PHYS)
anyone?
why post here? trade it and profit.
Doesnt look like it...but if those quotes would by any chance be from a free service like google finance, the Canadian quotes are always delayed by 15mins which would indicate the discrepancy.
Otherwise... ARB IT AWAY!!1
.... yeah "gold"
Cheeky,
OT, but if you do not mind could you explain how to interpret the "COT" section of your Finviz future charts?
what COT section.
Im really trying to find it on finviz, but no success so far.
Cheeky,
When I go to http://www.finviz.com and select the Futures tab you see a default view with Quotes, Performance and Charts. I select Charts and double click on S&P Chart. It opens and you see a secton below the Daily chart. Wish I could post a jpeg :-(
Oh I see it. Sorry.
COT [Commitments of Traders] is a report issued weekly by CFTC:
http://www.dailymarkets.com/commitment-of-traders/
Here you can monitor all daily COT movement for all COT Report included futures market.
Thanks Cheeky
Cheeky, I really appreciate your futures charts and check them several times a day. Quick and easy. Thanks!
In other news, STRATFOR reporting that Israeli Navy has orders to intercept Turkish flotilla headed to Gaza. What are the odds on tempers flaring amongst friends?
Is this the typical agressive Israeli illegal action of not allowing humanitarian aid to reach Gaza?
no
Yes, it's one of a very large docket of war crimes.
deleted
How do you offset the potential physical offset of Sprott etc. Simple - divert potential buyers to GLD so that they can buy paper. In my view GLD is now the proxy for governments to keep a lid on things. Joe Shmoe - with respect - buy physical or Sprott or others. Why play into their hands.
Thanks Dud, I'm beginning to agree. But I don't know how to assess a gold dealer. I don't know shit about it. He could sell me painted Oreos and I'd have trouble verifying. I mean, in the movies they just bite the coin. But seriously, anyone know how you actually can tell if you're not getting taken (of course, you an all give me a ration about "how I'm already getting taken by GLD."). I'd appreciate thoughts.
good dealers online . . . apmex, gainesvillecoins, tulving, kitco . . . just add a .com to any of those and you'll do fine
I've never had a problem with bullion coins, except perhaps that the premiums dealers are asking for are too high. Once in a while, however, I have unknowingly bought a counterfeit numismatic gold coin. They were, in fact, gold coins. Just not minted by the US government. So, unless you're into coin collecting, I'd recommend buying low-premium bullion coins.
Joe, most Americans have never seen a gold coin, much less owned one. Buying non-numismatic coins online from a reputable dealer is probably good advice. I would also recommend a visit to your equally reputable local coin shop to see various gold products and "talk shop" with the people there.
My local coin dealer, whom I know from high school, wants cash only and commands a premium from his captive audience of Schmoes. I have had very good luck buying on eBay from sellers with good feedback.
Just be careful what you pay on E-Bay. Make sure you know what the lot would cost elsewhere before you bid. I have bought a few gold coins on E-Bay, and some junk silver, but it's a lot of effort to get a decent price. It seems that a LOT of the auctions are ending at ridiculous premiums. Lately it hasn't gotten any better.
Been buying and selling coins on eBay since 1998. I just picked up my ASEs today from my P. O. Box, 20 of them from eBay auctions, same seller. Averaged $20.10 each including shipping. Pick the right seller and place your bids by esnipe.com
You can follow current pricing of gold on eBay here:
http://www.goldprice.org/ebay-gold-prices/
Be careful of dealers in China selling 'copies'...Like this: '
COPY High imitation Morgan 1878-cc DOLLARS REPLICAThis is one dealer among many on ebay selling copies of US collectible coins. Why does the US Treasury let these counterfieters get away with this?
ebay link http://cgi.ebay.com/COPY-High-imitation-Morgan-1878-cc-DOLLARS-REPLICA-/160438358304?cmd=ViewItem&pt=Coins_US_Individual&hash=item255adf1120
This is one reason why I only buy coins for their bullion value - I stay away from the numismatic end of things. God forbid that things get to that point, but if you ever have to use an Ag coin to buy food, the person selling is not likely to care whether it was minted in 1878 or 2008 - they will be much more concerned with the silver content. And without some good armament under such rough circumstances, you will quickly be separated from both Ag and food.
several months ago a reporter tried to sell a gold maple to passerbys on a pier in california for $50. he didn't get one taker. no one had any idea of it's value.
Not sure exactly who is buying, probaby a very small segment since all I ever see is a constant stream of ads on TV and in print media "buying" your gold. "Sell your gold"... on TV every 20 minutes. I would guess the bulk of the public is selling not buying gold.
That's funny, because all I see is BUY GOLD on TV, every time there's a commercial break. Specifically on Faux News. First it was Rosland, then Goldline, and now I saw a new dealer on there today that I've never seen before.
If you think that there aren't commercials for people to buy gold every ten minutes, you must be high.
Yeah, but what would you think of some guy standing on the sidewalk offering to sell $1200 gold coins for $50? More at work there than just public ignorance, though that has plenty to do with it.
The other thing Joe, is that (for me anyway) once I went heavy (small time, but heavy for me) PM's, it was like a bit of weight coming off. Kind of a good feeling. Paper Bugs cry that the sky is falling for gold, but there's risk in everything, and the writing is on the wall.
Plus, once you get a little stack built up, you can spread it out on the table during down market days and beat off like a monkey.
APMEX Bitches!!
TMI, Colonel. But I do like the heft of a nice gold coin.
I buy physical gold from my local bank. This is in Canada.
I checked out the deal at Scotia Bank and RBC. Scotia is tied in
with Scotia-Mocatta which allows you to buy gold online but it is
a lousy deal, the prices are high and they charge a 3% commission.
I buy from RBC. They charge the London Gold Fix price in Canadian
dollars, plus a premium of about $60 an ounce for 1 ounce gold
bars. Coins have a higher premium, larger bars are lower.
The smaller coins have a higher premium per ounce.
In addition, they charge 1/8% commission plus a delivery charge
of $10.50. This delivery charge is the same no matter how much
gold or silver you buy at one time.
Another odd thing. There is an 8% GST (sales tax) on coins but
not on bars. It seems to me it should be the other way around
since Maples are legal tender but bars are not.
I can place an order with my local branch over the phone. Then I
go into the branch and sign the order. The gold arrives within a
week, this time it took 6 days because of the holiday weekend.
When the gold arrives I go in and collect it and put it in my safe
deposit box, and sign the receipt. They then take the money out
of my bank account.
It took a little doing to get this service because apparently no
one ever asked before, at least not for a couple of years, at my
branch. But they can do it once they figure out how.
The gold came from their cash operations center, 20 King St.
Toronto. That is where they keep the gold. I believe you can walk
into that branch and buy gold over the counter but did not ask
about that.
The gold bars were mostly made by the Canadian government
mint but a few were made by Johnson Mathey.
The bank told me they will buy the gold back for a slightly lower
price than what they sell it for, $60 an ounce less I think. But it
has to be the gold they sell. If you bring in gold of a different
brand they have to send it to be melted down and assayed and
give you a much lower price. So it pays to sell the gold at the
same bank you buy from.
That is about it. If you are not in Canada perhaps you can buy
gold from your local bank, but check around for a good deal.
If you travel to Canada it might be an idea to open a bank account
and buy and store your gold here. I know some Americans did
this during the Roosevelt administration to dodge the gold
confiscation. They bought gold and kept it in a Canadian safe
deposit box quite legally. When gold went from $20.67 to $35
they cleaned up.
Thanks and interesting. One difference...I have not been charged sales tax on any gold purchase from a US dealer.
Here ya go: http://www.fisch.co.za/operation.htm
# Coin identification; fine gold or platinum content in troy ounces and grams, fineness. © or © The Fisch
# Slot checks the maximum diameter and thickness
# Fulcrum checks the minimum weight. The Fisch tips slightly below the manufactured weight to allow for acceptable wear
# Recess checks the shape and locates the coin for the weight check
But wouldn't a tungsten plated gold coin have the same density?
my eyes hurt...man, that's hard to read.
They used an actual typewriter. Nice touch.
yeah, a typewriter with the return bar broken off.
deleted
uh, given that the cartel super master "manages" GLD....
and that the cartel is finding itself in a world of trouble this delivery period....
what a surprise that they now want to sell 28B of fantasy gold and raise cash...
unfortunately for them, people don't exactly want delivery of cash over at the Comex....
boo hoo....
they may get the 28B from naive investors thinking they are really buying gold...
but....the cartel boyz are then going to have to find 28B of gold to buy somewhere.....
Yeah, okay...I have 5000 - well, what the hell - 50000 tons (yes, TONS) of Gold in my possession and I will sell it to all comers at market price. The only thing is you can't EVER audit it or see it and God forbid if anybody ever does and it's a pile of mud, well I'm NOT responsible. Got it?
THAT's GLD for y'all in a nutshell. Considering the amount of money that has been put into this thing, I'd say there are a lot of people out there who are simply asking for it and DESERVE to lose their money.
GG You are all over the place today...not tungsten in the "vaults" but air, and now this? A pile of mud too? I had just dumped my tungsten position and was tying to figure out what was a better buy, Nitrogen or Oxygen? How the hell do I go long mud? I guess I will just hold on to my small position of OTM long dated puts on GLD and hope they leave some obvious muddy footprints that will expose the fraud and then watch the sheeple get fleeced as they try to bolt their pens.
Bad butchee, bad trade. Go long tungsten. War is what is ahead. Tungsten will skyrocket.
You mean tungsten is used for someting besides my 25g darts and a large part of the volume of some "gold" bars?
yep.
http://en.wikipedia.org/wiki/Tungsten#Applications
i am going to step in here, now. i used a lot of these chemicals when i would hand mix my own ceramic glazes. especially bentonite, it is a flux. so other uses, too.
these chemicals were fired to 2300° fahrenheit in a reduction gas atmosphere kiln. strong, clay and glazes last forever. see i know something. pottery shouldn't be mocked like you did to it. high fire ceramics and porcelain is very sophisticated.
this link lists all the chemicals i would have in my ceramic studio. i would weigh them out on a gram scale. all to a specific formula. no mistakes either.
i am http://www.reade.com/Particle_Briefings/spec_gra.html
Former artist? Ever heard of Seagrove, NC? Figure potters have a tight knit community so you might have come across a few potters from Seagrove. Fantastic artists we try to support as much as possible.
Be real careful to get a certificate of compliance on your oxygen or nitrogen. Some Germans I know found a high level of carbon dioxide in their supposedly pure air and had to pay a carbon tax. Bummer.
By mud, he means bentonite, which must be going through the roof by now.
FuckNa
+40,000,000,000 on GordonGekko above
who is to say there are any investors? maybe its all cartel paper. they use the fund to water down the price. nah, they wouldn't do that , could they?
$40B in physical gold my ass.
Amazing that the sheeple actually believe in this thing. What a joke.
Why is the 40B figure so hard to believe? That's just a fraction of what we have stacked in Fort Knox right? And that's just a part of U.S. holdings anyway, right????
Seeking advise from the goldbugs - Been monitoring this forum for a while and plotting and planning to buy some PMs. Is it better to buy $10k of gold, or $10K of silver? Would it not be easier to use silver peices to buy less expensive items then to plunk down a full ounce of gold for something that costs say $250 to $750 (after a significant increase in the price of gold)? Do you expect the price of silver to increase proportionally with the price of gold, or do you think gold will increase significantly while silver increases marginally? What would be the break down in the physical PM purchases, all once-ounce coins, 10% one-ounce coins, 50% 10 ounce bars, the rest London Good Bars :)
And, what should the premium be for the once-ounce gold American Buffalo and Gold Eagle. Oh, is the pure Buffalo better than the gold eagle, and what about the extra cost for the proofs?
Thanks.
Buy ordinary uncirculated bullion American Gold Eagles. The Buffalo (.9999 purity) premium is now in line with AGEs so that's ok as well. NO proofs, too much premium. Premium on bullion varies from 5% to 8% depending on way too many factors to list here. Don't buy locally if there is a sales tax -- that ruins your calculations! Stop "planning" and do some buying. So you overpay a few bucks, won't matter in the long run. I recall how I anguished over buying 1 ounce Eagles when gold went over $400, and then $500. I just knew I'd be kicking myself. I still have those coins! Silver is fine in a lesser ratio. I love the stuff. Hold a roll of Silver Eagles in your hand and you'll be hooked. You can buy "junk silver" as well. Beautiful Walking Liberty halves are available at a bit over spot as circulated coins. I'd trade ya some bottled water and a couple of granola bars for one!
http://walkinglibertyhalfdollar.com/wp-content/uploads/2009/07/walking-liberty-half-dollar.jpg
Here is more to consider:
Thoughts on silver as a store of valueBy GoldSubject on May 18, 2010
'Walking Liberty halves'...I love those and have been buying and stashing them for years and I am not a coin collector. Beauty, a real store of value, and a currency that will never go to zero.
Stick them up
Your money and your Gold
says Goldman Sucks
Just posted a EURO monthly chart ...
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
too bad gld does not disclose that what little gold is holds is nothing more than gold plated tungsten....my guess is that it holds 0 oz of gold.