Most investors in GLD are starting to realize that there is a sudden depletion of the physical gold that underlies this fund and that they should be selling the GLD fund and investing those dollars in the real thing or mining companies that offer leverage to the price of gold and are more liquid. Today for instance, over 6 tons of gold were removed from GLD and since April 23rd, over 40 tons has been removed by investors trading their shares for delivery. The trend is speeding up and who knows how much gold is really there?
JPMorgans vault is now down to a mere 137,377 oz. That is less than 2 metric tons.
Mining companies are dead on arrival. Costs thanks to Bernanke fuel, labor, machine put them in BK, fools, $1300/oz just to break even, interest rates rise, THEY ARE 6 FT UNDER. Sleeping w/ their gold dust.
Yamana Gold has all in costs pinned at less that $850/oz. Plus they pay a 2.2% dividend. Not only that, they are driving costs down by $100/oz as they complete new mines and go after higher grades of ore. Buying low is the first step to s good investment...