"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

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Tuesday, February 15, 2011

Here is an interesting story that came down the Dow Jones feed this afternoon:

=WSJ BLOG/Market Beat: Big Funds Sticking With Gold

  (This story has been posted on The Wall Street Journal Online's Market Beat
blog at blogs.wsj.com/marketbeat.)

   Posted by Dave Kansas

  They still love Old Yeller, the barbarous relic.

  Continued unrest in the Middle East and a weakening dollar are combining to
push gold prices higher, rising to $1,372 an ounce on the Nymex. Also boosting
gold: the persisting big bets by big institutions and hedge funds.

  Looking at recent 13F filings that update holdings as of Dec. 31, most of the
big gold bettors are holding firm. The biggest positions in the SPDR Gold Trust
ETF, according to LionShares:

  -Paulson & Co. - 31.5 million shares (unchanged from Sept. 30, 2010)

  -Northern Trust Investments (NTRS) - 14.7 million shares (up 1.7 million)

  -BlackRock Advisors (BLK) - 8.2 million (up 665,000)

  -Morgan Stanley Smith Barney (MS) - 5.9 million (up 86,000)

  -J.P. Morgan Securities (JPM) - 4.9 million (down 1.8 million)

  -Soros Fund Management - 4.7 million (up 25,000)

  Along with J.P. Morgan Securities, some other big players are leaving GLD

  -UBS Securities (UBS) - 391,000 (down 2.5 million)

  -Franklin Templeton (BEN) - zero (down from 2.3 million)

  -Shumway Capital - 330,000 (down 1.8 million)

  -Harbinger Capital - 2.3 million (down 750,000)

  LionShares reports that net positions in GLD are up 3.2 million shares,
according to its most-recent data, with 197.7 million shares held.

  -For continuously updated news from The Wall Street Journal, see WSJ.com at

  (END) Dow Jones Newswires

  02-15-11 1328ET

  Copyright (c) 2011 Dow Jones & Company, Inc.


  1. I'd be curious to know how many of those "leaving GLD" are transitioning to physical.

  2. Perhaps a better question might be: "Who is buying all that gold that is being sold"?

    The follow up could then be: "are these the same entities that are taking the gold that is leaving GLD's reported holdings".

  3. That would be my guess. As the shares outstanding decreases I would expect increased volatility in the ETFs.


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