Did Eric Sprott Buy and Redeem GLD?

You can decide for yourself.  Here are the facts:

1) On April 5th, 2011, Sprott’s Physical Gold Trust ($PHYS) announced a secondary offering of 24.821MM shares at $12.54.  The total proceeds, including the underwriters’ over-allotment option, was $340.6 MM.

2) The GLD SPDR Gold Trust publishes its holding on a daily basis.   On April 5th, 2011, the Trust held 38,990,976 ounces of gold.  On April 6th, 2011, the Trust held 38,756,954 ounces of gold.  That’s a decline of 234,022 ounces.

3) The notional value of the 234,022 ounces of gold that were redeemed from GLD (let’s use $1455 per ounce) was: $340.5MM

So, to summarize, and again, these are facts$PHYS bought $340 MM of gold.   $GLD saw $340 MM in redemptions.



Kid Dynamite is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. If you click on my Amazon.com links and buy anything, even something other than the product advertised, I earn a small commission, yet you don't pay any extra. Thank you for your support.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Kiddynamitesworld Blog