In all probability you don’t know what I am talking about – so, never mind ! I only want to state publicly, that our dollar stewards just have filled one of the last remaining cracks in the wall: GLD inventory data. They join a long parade of financial data, heading for complete meaninglessness.
Remember, what I said about GLD being a proxy for the “market” of real gold, the metal that is. One was able to use it to gauge the actual state of affairs in all things gold.
Not any longer.
When this loophole became public knowledge – even at the very, very margin -, the urge must have arisen to fix it. On short notice, probably within hours.
Then everything was turned upside down: The $POG fell (as anticipated), but GLD inventory rose (contrary to each and everything which could have been observed since the inception of SPDR)
Within a week or so the gold price lost 40 dollars, while GLD accumulated another 18 tons.
It’s like jumping on a train, heading away from where you want to go, a very reasonable behaviour indeed.
Ok, so maybe
(1) the idea of GLD being a proxy was crap from the very beginning or
(2) somebody had a good tough talk with HSBC or
(3) SPDR’s reporting is still fine, but somebody who is acting in a … let’s say: non-conventional way decided, that it is more important to pull the wool over the eyes of the public. Here, too. After all, this would not be a big deal for this somebody. It’s not a giveaway – as long as you are an authorized participant.
In this case an increase in GLD inventory would be for real, but it’s indicative value would have disappeared.
So maybe the long correlation was just a coincidence. But the breaking of this correlation couldabeen collusion as well, you know.
Like with all the other metrics that are long gone. I am not familiar with this stuff. As I do not trade, I do not use all these charts and tables for investment decisons.
But some Tyler over at zerohedge does and I can remember him complaining, how “fucked up the markets are” and that it has become impossible, to put all these bits and bytes (he is paying for dearly) to a useful purpose.
GLD is just another case in point and a rather outlandish one.
Just saying. It is not in my hands. But this is not the way, to get someone go along of his own free will. Yes, he/she will go along, but like a blindfolded person, who is being led by the hand.