The total gold tonnage making up the GLD NAV has just hit an all time high, at 1,289.8 tonnes, even as the actual fixing price of both gold and of the the GLD ETF have been relatively flat after hitting an all time high on May 12, incidentally a day when GLD had 80 less tonnes in holdings than it does today. In less than a month GLD alone has presumably acquired 80 tonnes of gold backing up its intrinsic value. Also notable is that today GLD increased its gold holdings by 21.3 tonnes, despite a decline in both PM fix and GLD. Keep in mind that global weekly gold mine production is estimated at 30 tonnes. Did GLD acquire 66% of all gold produced in the last week today alone? We wonder if the WSJ article debating where demand for gold comes, and going as far as blaming gold to be a ponzi, is aware of this fact.
As for the question of how a seemingly relentless desire to acquire gold, translating in a 21 tonne increase in GLD gold holdings translates into a drop in the price of gold, we will just leave that one open.
Chart of absolute GLD price and GLD Net Asset Value Gold Tonnage.
And the same chart indexed to a 100% starting point.