BlackRock Suspends ETF Issuance Due To "Surging Demand For Gold"

Tyler Durden's picture




 

BlackRock's Gold ETF (IAU) has seen fund inflows every day in 2016 (no outflows at all) and with the stock trading above its NAV for most of the year, the world's largest asset manager has made a significant decision:

  • *BLACKROCK SAYS ISSUANCE OF GOLD TRUST SHARES SUSPENDED
  •  *BLACKROCK SAYS SUSPENSION DUE TO DEMAND FOR GOLD

 

BlackRock Statement:

Issuance of New IAU (Gold Trust) Shares Temporarily Suspended; Existing Shares to Trade Normally for Retail and Institutional Investors on NYSE Arca and Other Venues

 

Suspension results from surging demand for gold, which requires registration of new shares

 

iShares Delaware Trust Sponsor LLC, in its capacity as the sponsor of iShares Gold Trust (IAU), has temporarily suspended the creation of new shares of IAU until additional shares are registered with the Securities and Exchange Commission (SEC).

 

This suspension does not affect the ability of retail and institutional investors to trade on stock exchanges. Retail and institutional investors will continue to be able to buy and sell shares in IAU.

 

IAU holds gold as a physical asset. IAU is an exchange-traded commodity (ETC), which therefore is not eligible for registration as an investment company under the ’40 Act. IAU may only be registered under the ’33 Act as a grantor trust. Under the ’33 Act, subscriptions for new shares in excess of those registered requires additional filings with the SEC.

 

Nearly all other U.S. iShares are exchange-traded funds (ETFs), registered as investment companies under the ’40 Act. The ’40 Act provides for the continuous offering of shares and does not require registration of additional shares as the fund grows due to investor demand in connection to new subscriptions.

 

Since the start of 2016, in response to global macroeconomic conditions, demand for gold and for IAU has surged among global investors. IAU has $8 billion in assets under management, and has expanded $1.4 billion year to date. February marked its largest creation activity in the last decade.

 

This surge in demand has led to the temporary exhaustion of IAU shares currently registered under the ’33 Act. We are registering new shares to accommodate future creations in the primary market by filing a Form 8-K to announce the resumption of the offering of new shares. The ability of authorized participants to redeem shares of IAU is not affected.

It appears the huge demand for physical gold (and lack of supply) is finally catching up with the manipulation of paper prices.

If this is anything other than a brief technical suspension, it could well unleash panic-buying as we already pointed out - there is no physical gold!

 

As we previously concluded, the reality that there are just two tons of gold to satisfy delivery requsts based on accepted protocols should in itself be troubling, ignoring the latent question why so many owners of physical gold are de-warranting their holdings.

Considering there are now less than 74,000 ounces of Registered gold at the Comex, or just over 2 tonnes, we may be about to find out how right, or wrong, the skeptics are, because at this rate the combined Registered vault gold could be depleted as soon as the next delivery request is satisfied. Or isn't. 

Meanwhile, this is how gold is taking the news - it would appear that some gold is still available... one just has to pay up for it.

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Fri, 03/04/2016 - 10:41 | 7270757 ParkAveFlasher
ParkAveFlasher's picture

GOLD BITCHEZ!!!!!!!!

Fri, 03/04/2016 - 10:44 | 7270763 waterwitch
waterwitch's picture

Meltdown in 3, 2, 1...

Fri, 03/04/2016 - 10:47 | 7270788 VinceFostersGhost
VinceFostersGhost's picture

 

 

 

Take a check?

Fri, 03/04/2016 - 10:50 | 7270806 Soul Glow
Soul Glow's picture

$45 swing to the upside this morning.  That is an amazing move.  Looks like Jose Canseco knows a thing or two about investing!

Fri, 03/04/2016 - 10:52 | 7270824 RadioFlyer
RadioFlyer's picture

"swing"  I see what you did there...

Fri, 03/04/2016 - 10:54 | 7270835 SWRichmond
SWRichmond's picture

"We have to stop selling gold because people want too much of it."

Ever hear a businessman stop selling something because people wanted too much?

Fri, 03/04/2016 - 11:04 | 7270891 FireBrander
FireBrander's picture

 

 

"Ever hear a businessman stop selling something because people wanted too much?"

Uh, yeah...many, many times throughout history...because the thought the price "would always go up"..why sell today when the price will be higher tomorrow?

Remember:

> Tulip bulbs = eventual crash

> Beanie Babies = eventual crash

> Cabbage Patch kids = eventual crash

> Zhu Zhu Pets = eventual crash

> Gold/Silver in the 1970's = eventual crash

> Gold/Silver in the 2000's = eventual crash

> Gold/Silver in the 2010's = "it's different this time"....LOL~!

Fri, 03/04/2016 - 11:06 | 7270902 remain calm
remain calm's picture

Its on like donkey kong mother fuckers. Ok Janet print some gold you bitch.

Fri, 03/04/2016 - 11:12 | 7270935 Father Thyme
Father Thyme's picture

Alchemy!

Fri, 03/04/2016 - 11:17 | 7270975 MillionDollarBonus_
MillionDollarBonus_'s picture

10 reasons why I hate goldbugs:

  1. They cry about ‘manipulation’ every time they lose money
  2. They hoard gold instead of investing in the economy, denying millions of people jobs and income growth
  3. They undermine our national currency and national interests
  4. They selfishly pursue profit at the expense of others
  5. They keep ‘stacking’, even when they’ve already lost half of their family’s retirement
  6. They have no understanding of basic economic principles
  7. They snobbishly reject all other investments
  8. They have a lemming-like mentality, and buy in panic whenever they see any second-rate article about 'armageddon' or 'hyperinflation'
  9. They have an inability to see the other side of the gold argument
  10. They rush to one another’s defence in pro-gold arguments, even if they have no understanding of the argument at hand
Fri, 03/04/2016 - 11:20 | 7270985 LawsofPhysics
LawsofPhysics's picture

11.  They have the only lifevest in a world of monetary flooding and foolishness.

Fri, 03/04/2016 - 11:25 | 7271012 ParkAveFlasher
ParkAveFlasher's picture

12. ...and yet, they still have boating accidents.

Fri, 03/04/2016 - 12:04 | 7271210 Manthong
Manthong's picture

The fun is only beginning…

Gold will be swinging 100 bucks a day soon.

But watch WTF silver does.

 

 

..and MDB..  you are precious, too.

 

Fri, 03/04/2016 - 12:14 | 7271228 Four chan
Fri, 03/04/2016 - 12:23 | 7271340 The9thDoctor
The9thDoctor's picture

The 5-year gold chart is a textbook example of a bad investment, yet during that 5-year duration, Zero hedge has had a plethora of commentators shilling for this.

Meanwhile, the stock market had its biggest bull run in history and hedgers completely missed it. Even Donald Trump did well in the stock market during that time and he hates stocks.

Fri, 03/04/2016 - 12:25 | 7271358 Manthong
Manthong's picture

Alchemy!

I know the formula !!!!

3.6 g  Pb…1.888 g  Cu..  +26 grains of IMR 4895 

= about as good as gold

Fri, 03/04/2016 - 12:35 | 7271421 Manthong
Manthong's picture

"Ominous."

So just when F did these guys sneak into my office to do a freaking Youtube video ????

Fri, 03/04/2016 - 12:43 | 7271471 Son of Loki
Son of Loki's picture

" If you don't hold it ...."

Fri, 03/04/2016 - 13:11 | 7271626 BaBaBouy
BaBaBouy's picture

HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA
WOW...
No More GOLD Available... Beachez...

Fri, 03/04/2016 - 13:12 | 7271630 Manthong
Manthong's picture

Does anybody have a freaking clue that the 2 tonnes at the the F’ng Comex only occupies half the space of the average American 25” refrigerator    ?????????????

Fri, 03/04/2016 - 13:44 | 7271746 Lore
Lore's picture

What if I want to watch my gold that IAU offers to "hold" for me?  Do they offer live 24-hr video, like a baby monitor? How do I know the video isn't looped? Will they wave the front page of today's newspaper every morning?

Fri, 03/04/2016 - 14:38 | 7272039 Automatic Choke
Automatic Choke's picture

I will gladly pay you tuesday for a Kruggerand today.

Fri, 03/04/2016 - 15:23 | 7272185 daveO
daveO's picture

Right. Gold, what gold?

"iShares Delaware Trust Sponsor LLC, in its capacity as the sponsor of iShares Gold Trust (IAU), has temporarily suspended the creation of new shares of IAU until additional shares are registered with the Securities and Exchange Commission (SEC)."

This is a stock issuance problem. It reminds me of the late 90's when all those dot coms couldn't issue(counterfeit) their non-earning stocks fast enough to feed the retail suckers' demand. This article worries me that the price is likely to drop soon as Wall Street sops up demand with more paper. The old pump and dump. Remember April 2013.
Fri, 03/04/2016 - 16:42 | 7272582 Manthong
Manthong's picture

"this article worries me that the price is likely to drop soon"

What, Me Worry?

.. bought a few more VXX right at the close.

Fri, 03/04/2016 - 23:44 | 7274028 bamawatson
bamawatson's picture

saw this posted on another sight: --"I’m not an expert at ETF legalities but when this news broke I remember it saying the Blackstone fund is an ETC not an ETF. The C is for commodity.  And ETCs are governed differently and more strictly than ETFs.

So Blackstone had to stop selling when they couldn’t source physical.  GLD can keep right on issuing IOUs and pretending they have physical.

Is anyone familiar with these specifics?"

Sat, 03/05/2016 - 04:55 | 7274541 Squid-puppets a...
Squid-puppets a-go-go's picture

the specifics are immaterial if current momentum maintains. 2 tonnes at comex is like $80 million

at $80 left, there's gotta be a bunch of old money oligarchs who dont feel like theyve been sufficiently 'cut in' on the NWO deal and are more than happy to stab their cohorts in the back, scoop the pool, ride gold to the stratosphere and shout in a rough voice 'there can be only one, highlander'

Fri, 03/04/2016 - 13:42 | 7271763 ParkAveFlasher
ParkAveFlasher's picture

but but but STORAGE FEES

Sat, 03/05/2016 - 05:05 | 7274551 Squid-puppets a...
Squid-puppets a-go-go's picture

hehehe

BAILINS.. hows that for a fiat storage fee

GOVT DEFAULT .... hows that for a Bond storage fee

'DECLARED SELF HELP ...'  hows that for a stawx storage fee

Fri, 03/04/2016 - 12:50 | 7271508 Bunghole
Bunghole's picture

Who says hedgers missed the stock market rise.

Most of us also played in the markets between 2010 and now.

Some of us also decided to hedge our bets with physical and take some shitty boating courses.

Just because you cant afford physical is no reason to bash gold bugs.  Cherry picking a date range of gold performance shows what a pathetic little assmaggot you are.

Now get back to contributing to your MyRA and be a good little citizen.

Fri, 03/04/2016 - 14:06 | 7271887 Mr. Universe
Mr. Universe's picture

I missed nothing either. I made an informed decision that the market is fixed, corrupt and morally bankrupt. To participate would be, for me, ill gotten gains. I put all those investments that were in Equities and moved them to fixed rate (3%) accounts. I have to last another 2.75 years before I can pull it all out. I figure the odds are about 50/50 if anything will be left. So rather than expose even more to "investments" I have what's known to few Americans these days as "savings" that is held in PM's. Last time I check the same amount was still there, except what I add. Now is a time to save more than ever, whatever form you choose it to take. Liquor, lead, food, seeds, whatever is fungible. The danger is not being prepared and sadly it will be a real life version of...

they chose a new form for him: that of a giant Slor! Many Shuvs and Zuuls knew what it was to be roasted in the depths of the Slor that day, I can tell you!"

Fri, 03/04/2016 - 14:50 | 7272074 Han Cholo
Han Cholo's picture

How can someone not afford PM's? JM Bullion has quite an assortment and free shipping on anything over $100.00. Even if one can't pick off large buys, for the long haul or to wait out a serious economic long term, purchasing some grams of gold here and there steadily will benefit.. 

Fri, 03/04/2016 - 14:50 | 7272075 Han Cholo
Han Cholo's picture

How can someone not afford PM's? JM Bullion has quite an assortment and free shipping on anything over $100.00. Even if one can't pick off large buys, for the long haul or to wait out a serious economic long term, purchasing some grams of gold here and there steadily will benefit.. 

Fri, 03/04/2016 - 13:19 | 7271652 LawsofPhysics
LawsofPhysics's picture

Yes, many of us have done very well, but unlike the market my gold and commodity plays have returned over 32% since the begining of 2016...

 

I do appreciate the spreads that ZH often points out.  You do understand that you can make money whether the market goes up or down right?

Fri, 03/04/2016 - 13:32 | 7271713 Herd Redirectio...
Herd Redirection Committee's picture

What about non-USD Hedgers?  Whats the Gold chart look like in other currencies, 9th?

Fri, 03/04/2016 - 14:19 | 7271953 Bay of Pigs
Bay of Pigs's picture

He's a douchebag and a boldfaced liar. I gave him all that information just yesterday. 

Fri, 03/04/2016 - 13:33 | 7271718 Whalley World
Whalley World's picture

Just perhaps, some of us stackers were aware of the war on gold and silver, expected it, and bought with both hands during this JP Morgan induced sale of the century.  I have added 50 oz's gold and thousands of oz of silver at these depressed prices awaiting a turn.  Should gold and silver kept on rocking in 2011, I would not be as fortunate with the size of my stack(s)

Fri, 03/04/2016 - 13:11 | 7271623 fiatmadness
fiatmadness's picture

Silver is curently in lockstep with gold, being managed downward. The manipulation is blatant....

Fri, 03/04/2016 - 14:20 | 7271958 Bastiat
Bastiat's picture

Silver way outperformed gold today on huge volume--hardly lock-stepped.  Silver shorts made a special guest appearance on "Ow My Balls."  They may be offered co-star positions.

Fri, 03/04/2016 - 14:49 | 7272069 Father Thyme
Father Thyme's picture

+1 Idiocracy reference. :)

Fri, 03/04/2016 - 16:45 | 7272589 Manthong
Manthong's picture

?? broken windows or broken balls  ???

LOL

Fri, 03/04/2016 - 11:30 | 7271032 BendGuyhere
BendGuyhere's picture

asshole

Fri, 03/04/2016 - 11:34 | 7271060 lincolnsteffens
lincolnsteffens's picture

Great Timing!

Fri, 03/04/2016 - 13:35 | 7271730 jaxville
jaxville's picture

  I've been stacking gold (and a little silver) since 1983.  Aside from some purchases in 2011-2012, it's all looking pretty good so far.

  As a matter of fact, if I had a cash windfall I don't know where I would put it aside from gold, silver or quality producer shares.

  My savings are 65-70% physical gold with the balance in shares, silver and some cash. I sleep real good and see a comfortable retirement sometime in the next ten years. 

  I will be sure to say hello to you when you greet me as I go into Wallmart

 

Fri, 03/04/2016 - 15:33 | 7272238 daveO
daveO's picture

At 81/1 gold/silver ratio, silver is on sale vs. gold. Meanwhile, gold's currently on sale vs US debt (below$1700/oz). 

Fri, 03/04/2016 - 13:56 | 7271832 mctimm
mctimm's picture

11. And they're the only ones making real money in the marketplace.

Fri, 03/04/2016 - 13:58 | 7271841 mctimm
mctimm's picture

11-a. And they're the only ones making real money in the marketplace.

Fri, 03/04/2016 - 11:14 | 7270945 BobPaulson
BobPaulson's picture

1380 is the ceiling I am watching.

Fri, 03/04/2016 - 11:29 | 7271029 Bernoulli
Bernoulli's picture

There is no ceiling.

If paper decouples from physical, then the next stop for paper is zero and for physical is the moon.

Fri, 03/04/2016 - 12:42 | 7271469 Pairadimes
Pairadimes's picture

Even Redwoods don't grow to the sky. But the sudden death of the faux gold market was always going to be one of the markers for the beginning of the end of the fiat shell game. 

Now comes the next, larger wave of the rush to get out of paper things and into durable value. Right about now, people who didn't realize they needed to worry about this will start to notice that there is way too much dollar-denominated paper value to safely move it all into real assets. The exits will become pretty crowded fairly soon. I hope you all have already moved through them. Hang on to your hats.

Fri, 03/04/2016 - 11:07 | 7270910 Soul Glow
Soul Glow's picture

I like how you just trolled gold with tulip bulbs and beanie babies. 

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