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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (3504)	1/17/2006 9:02:57 PM
From: aknahow	Respond to of 220936

Thanks for asking the question, about the inability to purchase gold. If there is ever any inability to purchase physical gold, it might show up as consistent higher than norma premiums that continue day after day. But there will never be such a shortage. Price solves all problems. The price alone will create the supply needed to clear any trades both for delivery to the GLD ETF and to any others wanting physical gold at the clearing price. It can't be said too often, but I do try, neither the participating broker/dealers or the GLD ETF care about the price of gold. Sure a rising pog generates more interest in the product, which is not gold but the GLD ETF holding vehicle. The managers of the GLD ETF make no decisions on what the pog is going to do, in terms of managing the ETF. Likewise neither do the participating broker dealers. They make their small profits by shorting shares at a premium and getting new shares to cover the shares sold short at zero premium. On 50,000,000 a few cents profit, about 5 cents per share is good enough to make a profit. And this situation happens several times a month. Nice work, considering that retail brokers pick up as little as $5 for 5000 shares of an $90 stock.