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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Jon Koplik who wrote (9760)	10/3/2008 12:22:35 AM
From: Jon Koplik	Respond to of 33421

WSJ piece mentioning (now) 755.3 metric tons of gold in the SPDR gold ETF ................................. OCTOBER 3, 2008 Gold ETF Glows With Value in Turmoil SPDR Fund Lures Cash, but Volatility Makes Ride Bumpy By JOHN SPENCE The value of an exchange-traded fund tracking gold prices rose by about $4 billion in September as investors scurried for cover amid the worsening credit tempest and uncertainty over a potential bailout package. Assets in SPDR Gold Shares, which had $17.4 billion in its coffers at the end of August, surged last month as some of the nation's most respected financial institutions went up in smoke, were taken over by the government or were gobbled up by rivals. Assets are now above $21 billion. Yet after a price spike in mid-September, volatility in the gold-futures market has bounced the ETF around, and it lost over 4% on the New York Stock Exchange's NYSE Arca platform on Thursday after a modified rescue plan cleared a hurdle in the Senate. In 4 p.m. composite trading on the New York Stock Exchange, the shares were at $82.33, off $3.64, or 4.2%. The three highest-volume days in SPDR Gold's history were all logged in the past month. Total assets in the ETF briefly broke through $22 billion in July when gold prices rallied. Shares of the ETF represent about a tenth of an ounce of gold held by the custodian, HSBC Holdings PLC, in its London vault or in the vaults of subcustodians. The trust's sponsor is a subsidiary of the World Gold Council, while ETF heavyweight State Street Corp. is the marketing agent. Metal or Paper? Although some gold bugs argue there is a big difference between holding actual gold versus shares of an ETF on paper, SPDR Gold Shares has become a convenient way to invest in the metal without paying insurance and storage costs. ETFs are listed on an exchange and trade like individual stocks, so investors can buy and sell during the day. SPDR Gold Shares has an expense ratio of 0.4%. The price of a share is based on gold prices as determined by the so-called London PM Fix. "Thanks to the ETF format, the fund offers direct exposure to the value of gold in a more liquid and convenient package than burying gold in your basement," wrote Morningstar analyst Haywood Kelly in his latest report on SPDR Gold Shares. "Instead of buying guard dogs and a security system, you pay 0.4% per year." Still, he warned many investors are usually "horrible" at timing their purchases in the notoriously fickle gold market. Outshining Japan The amount of gold in the trust, which was launched in late 2004, surged by about 16% in September to a record 755.3 metric tons at month end. That means that SPDR Gold Shares holds only slightly less gold than Japan, which has a reserve of 765.2 metric tons and ranks seventh-largest in the world, according to the World Gold Council. Write to John Spence at john.spence@dowjones.com Copyright © 2008 Dow Jones & Company, Inc. All Rights Reserved.

To: Jon Koplik who wrote (9760)	12/30/2008 11:43:38 PM
From: Jon Koplik	Read Replies (1) \| Respond to of 33421

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. Copyright ©2008 Dow Jones & Company, Inc. All Rights Reserved.