Zar I found my answer its ok it seams it is held by HSBC in London and stored the gld is only a tracking mechanism and the liquidated share are stored and not put on the open market.
This appears to be a very precarious situation as the are no rules that set standards for what happens to the bullion after it is placed in the vault. So in reality there can be huge stores of gold removed from the market on any sell off not sure what to make of the possibilities this is a hard asset that has been taken off the market.
The GLD holds 68 tons on avg. at 1/10 value
I found this on the net in three places but this does not make it fact it does seam odd
same holds true for the slv
Zar, thanks due to my conversation with you on gold I sold my short Thur in gold. I still wonder what effect the GLD etf transfer will have any thoughts. I am not sure if it is stored for future purchase by GLD or placed on the open market I tend to think it’s placed on the open market (tons) but have read otherwise?
I suspect GLD's forced selling went on the open market and this helped drive GOLD price down.
Forced liquidation by GLD investor "panic selling".....does not last.
I am not sure of the "mechanics" of how sold GOLD is transferred and have not read any stories regarding this. I highly doubt it is stored by the ETF under their own control and not sure why you feel this is a issue. Would be happy to hear why/if you think this is important.
I have to agree Zar I also agree with your call on the market. If I could expand a tad gold copper and any of the other if the industrial metals being down in a declining market with a rising VIX is also bearish. This Maybe a sign of deflation as we head into the summer considering the action in oil and ROW soft numbers. IT is Clear that this drop is more than the tragedy in Boston the other day.
Still short gold via ETF GL
Many resource & miners have recently experienced "parabolic downside moves" after long term downtrends. Just like the REVERSE "parabolic upside move"....we know this doesn't last.
IMO look for a "turn" in coming days....weeks.....after prices begin to settle.
It may take some time but I believe the miners and resource stocks will regain strength. These stocks could soon be considered "value plays"....and money will be looking for bargains as selling exits SPX.
After trading it in 2012....again looking at SCCO. I will look for it to settle soon. Dividend now listed over 11%....but it varies.
SPX "topping out process" is usually a series of "PULLBACKS". Then some rebound after each "pullback". A SERIES of lower highs and lower lows. This helps bring in "new investors" on the rebounds and allows the "smart money" to continue liquidation. Until.....months later no buyers are left and the market begins its "crash phase". I think this is what you will see.