Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Nemer who wrote (48402)	6/2/2003 11:46:52 PM
From: BWAC	Read Replies (3) \| Respond to of 53068

Has anybody thought much about what might happen if/when the NYSE starts trading the newest ETF which will track to 1/10th ounce of gold? I think the symbol is planned to be GLD, and the date is sometime this summer. I guess it will be set up that as ETF shares are created physical gold is bought and stored. This sounds like a recipe for market disaster to me, even moreso should the daily fear monger type rumors resurface. From an article I was reading: <<<<The World Gold Council's Equity Gold Trust (GLD: news, chart, profile) marks the second commodity-linked security to grace the floors of a stock exchange. The first, Gold Bullion Ltd.'s Australia-traded security (AU:GOLD: news, chart, profile), is already meeting brisk demand for so-called "paper gold." The down-under gold fund, which allows investors to own one-tenth of an ounce of gold for each share of stock they buy, is structured much like the World Gold Council's proposed fund. The Australian-traded one started with five 400-hundred ounce bars when it debuted earlier this spring. As of mid-May, the Gold Bullion trust shows 150 bars, or about 61,000 ounces worth $21.3 million in U.S. dollars. That's a good showing for the security's first 35 days. "That's 450,000 ounces in a full year of 261 working days," Andy Smith at Mitsui Global Precious Metals tells me. Prorated for a U.S. population that is 15 times as large as Australia's, the proposed NYSE product could spark demand of 205 tonnes, or about 6.6 million ounces, says Smith, a well-known gold analyst. That's about the yearly production of a dozen or so mid-tier producers of the metal. "The Mother and Grandmother of Bullion Products? By comparison, the last bonanza year for gold Eagle coins was 1999, and 2 million ounces were sold," Smith tells me. That year, of course, was when the world was nervous about the millennium computer bug that failed to materialize.>>>>>