Another Big Inflow For GLD Signals Higher Prices Ahead
If gold continues to flow into GLD and other gold ETFs this sets up gold to move higher. The west is slowly moving back into the gold market and that is why we are seeing a nice appreciation in the price. ETF demand is only one of the drives behind the gold price but any shift to the positive is a welcoming change from the past 2 years.
Tim does bring up that the Chinese are very cost sensitive so if the price moves up too much they could reduce their buying. This is true however in my eyes it would be a good thing. Higher prices will help the stocks and the overall gold market as well as slow the movement of gold from the west to the east. On the other hand maybe China will keep up with its buying … but I hate saying “this time will be different”.
Well spotted , cfs , re kilobars……..a lot of the gold going trough Swiss refiners are been recast in to kilo bars , so they could perhaps be coming from there.!!!…I would be surprised if Asians had enough trust in American banks ..to store their metal with them…..But there again…Too many questions…& too few honest answers.
I wonder just how smart it is for gold investors to do that? Comments?
What will happen to this gold from the Ukraine? Will it be dumped on the market in an attempt to control the price, used to supply the GLD, or will it be used to replenish the COMEX inventory? Or my least unlikely choice–send it to Germany?
BB….Perhaps they will put it in fort knox , so they can say there is gold in the box. Then they can put their hand on their heart & swear to the American people, that yes …..THERE REALLY IS GOLD IN FORT KNOX.
It is interesting that there had been no deposits into GLD in March until March 7 (1.5 tonnes) and then March 10 (7.5 tonnes)
While not statistically significant in amount, the change in direction from withdrawal to deposit is interesting.
What no one else is commenting on, is the fact that quite often nowadays instead of seeing round number deposits in ounces into depositories, one increasingly see strange numbers. E.g. Scotia indicated a new customer deposit of 4,501 ounces. Strange until translated into Kilos. = 140 kilobars. More and more oftem one sees deposits of tens or hundreds of kilos. Does this indicate the gold is actually coming back from Asia to be stored in US and Canadian banks for safety? Probably.