Jeffrey, thank you for this very insightful piece into the current economic situation in China. Do you think the deteriorating economics will have an effect on the current trade disputes or are we not at that point yet? The trade issues have been frequently referenced as a cause of the economic instability.
"This has boosted both the GLD ETF, which holds physical gold"
Bart Johansen, would you be able to provide any verifiable evidence outside of GLD's holding reports to support this claim? I've long found GLD's holding reports to be questionable at best. GLD makes the claim that it is completely supported by physical gold yet it denies your every day investors the right to exchange for any of their listed 'gold'. This alone means GLD shares are just paper by the day's end.
Moreover, GLD's prospectus is loaded with weasel clauses that lets the trust get away without the promised gold backing. A good example of this is in the section of the prospectus that states GLD has no right to audit subcustodial gold possessions. I have never heard of any justifiable reason explaining why this audit loophole exists. CNBC's Bob Pisani also made a highly publicized visit to GLD's gold vault in a segment called Gold Rush: The Mother Lode. GLD's administration organized this visit to show that GLD's gold actually exists. However, the gold bar held up by Mr. Pisani showed a serial number of ZJ6752 which did not show up on the latest bar list during that time. It was later found that this "GLD" bar actually belonged to ETF Securities.
Chuck, thanks for this excellent article. I'm interested in CAH and ARW so this was a good read. I'm aiming to do a bit more due diligence on these picks before moving forward with them.
"The strong outflows (minus 9 tonnes) from the inventory of the largest gold ETF (GLD) on the other hand are a negative signal."
Florian, how reliable are GLD's holding reports? GLD does not give retail investors the right to redeem for any of its mystery physical gold holdings. This fact alone ensures the GLD shares to be nothing more than paper at the end of the day.
GLD also has a glaring audit loophole in their prospectus that states they have no right to audit subcustodial gold holdings. To this day, I have not heard of a single good reason for the existence of this backdoor to the fund. I remember there was a highly publicized visit by CNBC's Bob Pisani to GLD's gold vault. This visit was organized by GLD's management to prove the existence of GLD's gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this "GLD" bar was actually owned by ETF Securities.
Steven, thank you for this well written piece. I'm curious about your thoughts on the current US government #shutdown's effects on the economy. This is in terms of a protracted shutdown. The airports, for example, have been less and less functional the longer the shutdown persists.
Ben, thank you for your insights into these gems. $TSN has been a favorite of mines for quite some time now. I have been looking for an opportunity to load up a bit more so I might as well pull the trigger here.
"short interest on GLD (SPDR gold ETF) fell 1.7 percent"
Paban, you seem to be very familiar with this particular gold fund. I've spent quite a bit of time doing my due diligence into GLD. Would you happen to know why there is a clause in the GLD prospectus that states GLD has no right to audit subcustodial gold holdings? The GLD managing organizations sure went out of their way to create this glaring audit loophole. What is the purpose of this loophole? Additionally, the GLD organizations promise that this fund is 100% backed by actual physical gold but yet they staunchly deny retail investors the right to any of their listed physical gold.
CNBC's Bob Pisani also made a highly publicized visit to GLD's gold vault in a segment called Gold Rush: The Mother Lode. GLD's administration organized this visit to show that GLD's gold actually exists. However, the gold bar held up by Mr. Pisani showed a serial number of ZJ6752 which did not show up on the latest bar list during that time. It was later found that this "GLD" bar actually belonged to ETF Securities.
Thank you Ira for this wonderful look into agriculture markets. Soybeans have been getting hammered and with the ongoing trade war, the prospects are not looking all that well going forward.
Latest Comments
Not Even PBOC Supports Yuan’s Reserve Role
Jeffrey, thank you for this very insightful piece into the current economic situation in China. Do you think the deteriorating economics will have an effect on the current trade disputes or are we not at that point yet? The trade issues have been frequently referenced as a cause of the economic instability.
March Gas Reverses Ahead Of Tomorrow's Storage Number
Thanks for the updates Jacob. The weakness in gas prices definitely seems to be tapering off a bit this week.
Gold ETFs Glitter
"This has boosted both the GLD ETF, which holds physical gold"
Bart Johansen, would you be able to provide any verifiable evidence outside of GLD's holding reports to support this claim? I've long found GLD's holding reports to be questionable at best. GLD makes the claim that it is completely supported by physical gold yet it denies your every day investors the right to exchange for any of their listed 'gold'. This alone means GLD shares are just paper by the day's end.
Moreover, GLD's prospectus is loaded with weasel clauses that lets the trust get away without the promised gold backing. A good example of this is in the section of the prospectus that states GLD has no right to audit subcustodial gold possessions. I have never heard of any justifiable reason explaining why this audit loophole exists. CNBC's Bob Pisani also made a highly publicized visit to GLD's gold vault in a segment called Gold Rush: The Mother Lode. GLD's administration organized this visit to show that GLD's gold actually exists. However, the gold bar held up by Mr. Pisani showed a serial number of ZJ6752 which did not show up on the latest bar list during that time. It was later found that this "GLD" bar actually belonged to ETF Securities.
Is There Real Value In These 7 Distribution Services Companies?
Chuck, thanks for this excellent article. I'm interested in CAH and ARW so this was a good read. I'm aiming to do a bit more due diligence on these picks before moving forward with them.
March To Enter Like A Lion, Bouncing March Gas
Jacob, thank you for your insights. The charts have been particularly helpful.
Gold - In Neutral Mode!
"The strong outflows (minus 9 tonnes) from the inventory of the largest gold ETF (GLD) on the other hand are a negative signal."
Florian, how reliable are GLD's holding reports? GLD does not give retail investors the right to redeem for any of its mystery physical gold holdings. This fact alone ensures the GLD shares to be nothing more than paper at the end of the day.
GLD also has a glaring audit loophole in their prospectus that states they have no right to audit subcustodial gold holdings. To this day, I have not heard of a single good reason for the existence of this backdoor to the fund. I remember there was a highly publicized visit by CNBC's Bob Pisani to GLD's gold vault. This visit was organized by GLD's management to prove the existence of GLD's gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this "GLD" bar was actually owned by ETF Securities.
January 2019 Beige Book: Reading Between The Lines - Rate Of Economic Expansion About The Same
Steven, thank you for this well written piece. I'm curious about your thoughts on the current US government #shutdown's effects on the economy. This is in terms of a protracted shutdown. The airports, for example, have been less and less functional the longer the shutdown persists.
10 Undervalued Stocks For The Enterprising Investor – January 2019
Ben, thank you for your insights into these gems. $TSN has been a favorite of mines for quite some time now. I have been looking for an opportunity to load up a bit more so I might as well pull the trigger here.
After Nice Rally Since Early Oct, GLD Approaches Decent Resistance
"short interest on GLD (SPDR gold ETF) fell 1.7 percent"
Paban, you seem to be very familiar with this particular gold fund. I've spent quite a bit of time doing my due diligence into GLD. Would you happen to know why there is a clause in the GLD prospectus that states GLD has no right to audit subcustodial gold holdings? The GLD managing organizations sure went out of their way to create this glaring audit loophole. What is the purpose of this loophole? Additionally, the GLD organizations promise that this fund is 100% backed by actual physical gold but yet they staunchly deny retail investors the right to any of their listed physical gold.
CNBC's Bob Pisani also made a highly publicized visit to GLD's gold vault in a segment called Gold Rush: The Mother Lode. GLD's administration organized this visit to show that GLD's gold actually exists. However, the gold bar held up by Mr. Pisani showed a serial number of ZJ6752 which did not show up on the latest bar list during that time. It was later found that this "GLD" bar actually belonged to ETF Securities.
Agriculture Markets Report - Thursday, July 26
Thank you Ira for this wonderful look into agriculture markets. Soybeans have been getting hammered and with the ongoing trade war, the prospects are not looking all that well going forward.