MiningFeeds’ Adam Hamilton reported yesterday that the SPDR Gold Shares (ARCA:GLD) exchange-traded fund (ETF) is set to surge after remaining stable thus far this year.
The article concludes:
The bottom line is GLD’s holdings are set to surge again. After plummeting last year in an extreme once-in-a-lifetime orgy of selling, GLD’s holdings have been stable this year. That’s despite the fierce headwinds of the levitating stock markets continuing to howl, and the recent gold sentiment wasteland of the summer doldrums. As these lofty stock markets inevitably sell off, stock traders will return to GLD.
Their necessary GLD-share buying to re-diversify unbalanced stock portfolios will add big marginal gold investment demand. This is on top of the usual fundamentally-driven seasonal strength starting now. And GLD’s holdings remain so anomalously low that a mean reversion to normal levels will require this ETF to buy many hundreds of tonnes of gold bullion. That will work to supercharge gold’s next upleg.