Gold ETF Holdings Hit Record

August 15, 2012

Billionaire John Paulson and George Soros add to their GLD holdings as well.


[This article originally appeared on and is republished here with permission.]


Neither gold nor silver prices moved last week as the duo remained stuck in their well-established ranges. However, investors steadily accumulated positions in the metals, signaling confidence that prices will eventually break higher.

Recent SEC filings showed that billionaire George Soros' company doubled its stake in the SPDR Gold Trust (NYSE Arca: GLD) in the second quarter to 884,000 shares. Fellow billionaire John Paulson increased his holdings by a quarter to 21.8 million shares.

Total gold exchange-traded fund holdings reached 77.7 million troy ounces this week, up 2 million from the start of the year and a new record high.



Silver exchange-traded fund holdings are creeping higher as well. They last stood at 582 million troy ounces, up 26 million from the start of the year. Silver holdings peaked at 599 million last April, when the metal reached a record high near $50/oz.


Thus, the current increase in investment appetite for the gray metal bodes well for bulls.

We maintain our view that both gold and silver will eventually move decisively higher, but that silver is likely to outperform.










ETF Holdings

Gold ETF holdings last stood at 77.7 million, up 410K, or 0.53 percent, on the week. Silver holdings rose by 0.2 million, or 0.04 percent, to 582 million. Platinum holdings were unchanged at 1.35 million. Palladium holdings rose by 2K, or 0.82 percent, to 1.94 million.







Key Ratios

The gold/silver ratio rose to 57.7; the gold/platinum was flat at 1.14; the gold/palladium rose to at 2.77; and the platinum/palladium ratio rose to 2.42.







The U.S. Dollar Index was little changed at 82.5, while the EUR/USD was likewise little changed at 1.2329.






Sovereign Debt

German and United States 10-year bond yields were slightly higher last week, as traders await more clues on future central bank action. German yields were last trading at 1.47 percent, while the U.S. 10-year yield rose 1.72 percent.

Against the German benchmark, yield spreads on PIIGS country bonds fell modestly. Portuguese, Italian, Irish, Greek and Spanish yield spreads were last trading at 8.44 percent, 4.37 percent, 4.57 percent, 23.04 percent and 5.27 percent, respectively.

The ECB did not purchase any sovereign bonds last week.













Consumer prices in the U.K. rose by 2.6 percent year-over-year in July, up from June's 2.4 percent rate. Core prices grew by 2.3 percent, up from 2.1 percent.



China's consumer price index grew by only 1.8 percent year-over-year in July, down from 2.2 percent in June and the slowest rate since January 2010.


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