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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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From: aknahow	2/22/2008 1:30:43 AM
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Interesting article on Sinclair's great web site. Don't agree with it but interesting: The Fishy Smell Of Streettracks Gold ETF's Reported Holdings Author: Dan Norcini Dear CIGAs, Something smells mighty fishy to me about what is going on in this ETF of late. Some of us have long believed that the inherent flaw in this ETF is in its auditing process which is less than transparent. If the bad guys who comprise COT and are the price managers on behalf of the US monetary authorities needed another source of gold for the supply that they feed into the market to suppress the price, the ETF is a perfect vehicle for this. I find it a huge stretch of the imagination to see gold soaring into all time highs and the one major indicator of investment demand for that same metal sitting there unchanged when it comes to reported holdings for nearly two weeks! I just read this AM that platinum and palladium holdings in the London ETFs for those metals are soaring because of investment demand. Why then is the gold ETF not reporting a sharp increase in its holdings? To believe that nothing has changed in there is to believe that the sun rises in the West. ////////////////////////////////////////////////////////////// Below are my comments There have been other longer periods without changes in the holdings. The premium discount during the period mentioned did not give any clear cut reason to expect either withdrawals or additions of physical. There are some logical reasons why premiums on shares get smaller as gold goes up in price. Buyers of shares that have already gone up would tend to more concerned about paying a high premium. In addition selling from other holders taking advantage of the rise in price keeps the premium in check. Actually rather than smell or invent another conspiracy, I think it is very bullish for gold that the rise in price has not been due to additions of physical by the GLD etf. The discount/premium continues to control additions and withdrawals and that is just what the creators intended.

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