There’s Something Strange Happening With GLD Inventories

By Otto Rock

It’s goldbug tinfoil hat time at IKN, because this is weird:

After running up the way it has recently and right in the middle of a period of intense market turmoil, just the type of action that makes gold safe haven strategies attractive, gold inventories at GLD have stalled at 856.89mt and stayed right there for nine days running. That’s also just under the record since Trump came to power. Parrot required:

Regular readers know that IKN doesn’t jump quickly into conspiracy theories and blather about Bildebergs and “THEM!!!”, but your humble scribe is also keenly aware that markets get rigged from time to time. There is something amiss here, it’s not as if gold should be ignored at the moment. Data from here of course.

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GLD Inventory Levels and the Inventory/Price Ratio Have a Tale to Tell

By Otto Rock

If you go over to the dedicated site of the SPDR Gold shares ETF, better known to the world as GLD, there’s plenty of information to cut and slice. Here are two charts derived from just a couple of the datasets available.

This shows bullion holdings in metric tonnes since Jan 1st 2016. It takes in the pre-Trump world, the system shock of the US election, and all moments since then. Notice how, with some normal fluctuations, bullion held at GLD has been pretty stable recently.

However, if you divide bullion by gold price there’s a distinct decandence (taking into account the cut down Y-axes of course):

Chew those over and come to a conclusion or two. That there’s a lack of interest in owning gold among the Wall St jocks at the moment. And that there’s plenty of room for gold to run hard when that sentiment changes.