from TFmetals Report:
Much has been made recently about “metal flowing back into the GLD”. As if this is a sign that “investors are returning to the sector” and “the ETFs are working just as you’d expect”. Uhhhh….not so much. Let’s look at the actual numbers.
First of all, you know the story. While price was beaten savagely lower in 2013, allowing JPM and the other banks to either dramatically reduce or eliminate altogether their net short positions, the GLD was raided for metal to cover the ever-increasing demand from China and other dollar creditor nations. From a 1/1/13 “inventory” of 1,349.92 metric tonnes, the GLD was consistently pillaged for supply and it finished the year at 798.22 mts, down over 40%. Even though price initially bottomed on 6/28/13 at $1180, the GLD shed a total of 171.28 metric tonnes between that date and the double bottom date of 12/31/13.
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