Gold ETF Holdings Begin to Climb Again as Price Strengthens
Source: Mineweb, Lawrence Williams (5/25/09)
". . .with the Chinese and Russian Central Banks buying gold, and western Central Banks loath to sell. . .this will help underpin gold and silver prices."
The revival of active investor interest is shown by a 13.14 ton increase in the holdings of the SPDR Gold trust - the world's largest gold ETF. The holding now stands at 1,118.76 tons as of Friday, after showing very little movement in either direction since April 17th. While the holding is still some 8.92 tons below the 1,127.68 ton record recorded on April 9th, there is the strong possibility that it will attack this level again given the resumption of further economic gloom after a few weeks of possibly undue optimism.
Silver has also been benefiting despite its heavier proportion of industrial usage. It is seen as a much cheaper way of entering the precious metals investment sector as the price does tend to get dragged up by that of its sister metal and also tends to be more volatile. At the time of writing, silver is at $14.65 an ounce - a little down from a $14.84 brief spot peak reached on Friday.
A number of economists are pointing to parallels with the Great Depression and the more recent Japanese deflation which show, that if history does repeat itself, markets could continue to fall for a very long time and there is also evidence that with the Chinese and Russian Central Banks buying gold, and western Central Banks loath to sell, that this will help underpin gold and silver prices. Interesting times!