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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (22513)	11/27/2004 2:16:02 PM
From: patron_anejo_por_favor	Respond to of 110194

<<GLD also deals in futures because thats the way gold purchase and sales are made. Its impossible to transact as much gold as this ETF is doing without using futures.>> That's what I figured had to be the case....they can probably keep a base inventory (to start), then settle up with receiving or delivering based on their futures contracts at the end of every month. From day to day (or minute to minute) what they have physical possession of couldn't possibly be exactly what the shares represent... Like I say, I'm happy GLD is with us....some short term adjustments have been made (ie, some move from shares to physical, and the premium being taken out of CEF). In the time frame going forward, making gold as accessible as, say, GOOG shares is a major plus.