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Gold/Mining/Energy : Silver prices

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To: Louis V. Lambrecht who wrote (7349)	4/30/2006 9:48:35 AM
From: aknahow	Read Replies (1) of 8010

Baskets for GLD are 100,000 shares. "2.3 Creations and Redemptions of Shares The Trust will create and redeem Shares from time to time, but only in one or more Baskets (a Basket equals a block of 100,000 Shares). The creation and redemption of Baskets will only be made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of gold and any cash represented by the Baskets being created or redeemed, the amount of which will be based on the combined net asset value of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received. " So when gold was around $500 and shares were around $50 the $50,000,000 were about 10 baskets, which also represented 3.1 tons of 2000 lbs each. If and as the value of gold rises, perhaps the transaction size required to produce a profit will change. It is a given that baskets must be used for flows in and out but the transaction size for a day has generally involved $50,000,000 or 10 baskets.

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