WSJ -- SPDR Gold Shares now has 775.33 metric tons of gold ..............................
So ...
Platinum has fallen from over $2000 an ounce to about $800 or $900 an ounce recently.
Silver has fallen from about $21 an ounce to about $10 or $11 an ounce recently.
Palladium has fallen from about $600 an ounce to about $180 an ounce recently.
Copper has fallen from over $4.00 a pound to about $1.30 a pound recently.
But ... a lot of people apparently think that buying gold near its all-time peak price (now) is a good idea ...
DECEMBER 31, 2008
Biggest Gold ETF Holds Its Weight
'Positive Sign That Demand Is Firm'
By ALLEN SYKORA
Holdings in the world's largest gold exchange-traded fund are at a record level as 2008 winds down, providing some healthy optimism for the market in coming months.
Metal held by SPDR Gold Shares (trading symbol GLD) climbed to 705.90 metric tons on July 11, before backing down to 614.35 in mid-September amid a liquidation selloff throughout the commodities complex. Since then, holdings are on the rise again.
The SPDR Web site shows the holdings at a record 775.33 metric tons each business day since Dec. 17. This represents an increase of 23.5% from 627.88 metric tons at the end of 2007.
Holdings in the world's main silver ETF, iShares Silver Trust (SLV), are near their all-time high. They stand at 6,792.99 metric tons, not far below the peak of 6,901.41 in late September.
Rising ETF holdings are generally described as supportive for a commodity such as gold or silver, because it generates actual physical demand, analysts say.
"It's a huge trend," said Tom O'Brien, analyst and editor of Gold Report newsletter. "Everytime somebody buys the GLD, the actual fund has to buy the physical gold."
That's because metal is put into storage to back the ETF shares.
"It's a positive sign that underlying demand is firm," said Jeffrey Nichols, managing director of American Precious Metals Advisors and publisher of NicholsOnGold.com. "It's similar to the indications we've been getting for many months now from the coin market, where premiums on American Eagles or Maple Leafs or other major bullion coins have been very high because of the shortage of product from the mints."
Analysts described ETFs as one of the easiest ways for investors to hold gold. They buy shares similar to a stock, and the ETF tracks the price of the metal. Meanwhile, investors don't have to worry about storage of bars or handling coins.
"It makes the gold market much more accessible to people than futures," said Sterling Smith, vice president with FuturesOne. "There are many, many more participants in the stock markets than traditional commodity market. This allows them to readily, in any account size, put some money into gold."
ETFs let investors avoid the leverage and margin requirements of futures markets, Mr. Smith said.
"I think the holdings can be very bullish for gold," he said. "As they keep getting higher and people are willing to hold it, that will provide a floor."
Mr. Nichols said it is important to recognize the gold ETFs are a proxy or form for holding physical gold more conveniently than actually taking the physical metal in bar form or coin form. "It's responding to the same underlying forces that are pushing gold higher," he said "It's not separate and apart."
Analysts cited uncertainty about the economy and financial markets, with gold often bought as a flight to safety to preserve capital. There also are ideas that global monetary easing and fiscal stimulus aimed at jump-starting the economy eventually will lead to inflation.
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