damn, my PUKE thread has now gone off track.
This thread is about how to interpret GLD inventory declines and the implications of these inventory changes.
GLD lost 22.86tons again this morning.
Popular media explanation is that GLD investors sold their GLD shares/units thus resulting in holdings drop at GLD.
My interpretation backed by GLD prospectus is that GLD inventory drops can only occur through redemption of GLD units for real gold.
A redemption of GLD units is not a sale!
If you hold units in a normal fund, your redemption will be for dollars. This is to say you prefer to hold dollars.
If you hold GLD units, your redemption will be for gold ounces. This is to say you prefer to hold gold ounces.
the puke indicator, page-90
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