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


To: regli who wrote (48513)1/3/2006 11:07:14 AM
From: aknahow  Read Replies (1) | Respond to of 110194
 
Thanks, but in reality having to explain GLD to others is what helped me to finally understand it.<g>

Still may be missing some finer points but most of all I still am not sure how to use what I do, think, I understand.

For those that are interested, what appears to be certain is that: (1) deliveries or removals of physical gold are related to the permium or discount. (2)Premiums of .10% or one tenth of one percent are sufficient to induce participant broker/dealers to sell short and cover by delivering physical gold to obtain new shares and an automatic small but sure profits.
(3) the amount of increase of around 3.1 tons is related to the value of 1 million shares of GLD $50,000,000 being related to 100,000 oz. or about 3 tons.



To: regli who wrote (48513)1/5/2006 10:58:14 AM
From: aknahow  Read Replies (1) | Respond to of 110194
 
Today Jan 5, we could see a addition of physical gold to GLD by the participant broker dealers to obtain new shares based on the premium for the prior day. Of course it depends on what the premium is for today.

There was a small withdrawal of gold by participant broker dealers yesterday, in spite of the premium.

04 Jan 2006 $53.220 $53.28 0.122% 5,284,800

I have noticed that at the end of the day the reports have begun to not provide the premium, stating that it is "awaited".

Not sure if this has always been the case, and that I have just noticed, given my new found interest in the "premium'.