Gold News

(Small) Positive Inflows into Gold and Silver ETFs

Demand holds up despite Dollar price declines...

AS THE Gold Price in Dollars declined a net $27.19 in the week ended last Friday – and rose about €34.96 in Euros – SPDR Gold Shares (NYSE:GLD), the largest Gold ETF in the world, reported positive money flow into the trust (more buying pressure than selling pressure), notes Gene Arensberg's GotGoldReport.

The authorized market participants for GLD issued new shares, in return for adding to metal holdings by 9.6 tonnes this week, to 1,241.92 tonnes of allocated, LBMA-approved, so called "good-delivery" gold bars held for investors by a custodian in London.

Source for data SPDR Gold Trust. 

As of Friday's close the metal held in trust for GLD was worth about $73.9 billion.

All five of the gold ETFs sponsored by the World Gold Council also reported an increase, of 9.6 tonnes to a collective 1,543.66 tonnes of gold metal (about 49.6 million ounces worth $91.9 billion). 

GLD and most physical-backed gold ETFs add metal and increase the number of shares in the trading float in response to periods of aggressive buying pressure – when there is more positive liquidity than negative liquidity. The reverse is also true.

iShares COMEX Gold Trust (IAU), now our preferred gold ETF, also reported positive money flow, adding 1.12 tonnes to their metal holdings, to show 168.06 tonnes of good-delivery gold bars. IAU's expense ratio is lower than GLD's (0.25% vs 0.40%), but liquidity and option depth is better with GLD. 

Metal holdings for BlackRock's iShares Silver Trust (NYSE:SLV) increased this past week as SLV authorized market participants issued new shares in return for adding 65.13 tonnes of allocated, LBMA-approved commercial good-delivery silver bars, held by SLV's custodian in London (JP Morgan Chase, London). Note that we saw positive money flow into both gold and silver ETFs even though the USD price of the metals was lower.

Source for data, iShares Silver Trust.

Like GLD, the authorized market participants for SLV add silver (and increase the number of shares in the trading float) in response to more buying pressure than selling pressure and vice versa. 

Clearly there has been positive money flow for gold and silver ETFs over the past week. Not a lot, but positive nonetheless.

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A land developer, professional numismatist, self-taught bullion trader and investor since 1980, Gene Arensberg analyzes technical and fundamental developments in the precious metals markets. In 2000 Gene started sharing his own market research with fellow traders and fund managers. Those email reports evolved into his popular Got Gold Report, a biweekly look at important indicators for gold and silver published on the web. Gene's more in-depth market reports, insights and trading ideas are available at GotGoldReport.

See the full archive of Gene Arensberg.

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