Forgive me for paying too much attention to the tonnes of gold that are now moving mostly into, rather than out of, the trust for the SPDR Gold Shares ETF (GLD), but this could be a very important story this year.
It certainly was last year as one analyst after another concluded that the price of the metal wouldn’t be able to find a bottom until U.S. investors stopped selling.
That’s about all U.S. investors did last year as more than 500 tonnes of gold exited the trust.
The gold price fell, more Westerners sold gold, this exacerbated the price decline causing even more shares of GLD to be sold and the holdings of the GLD trust fell further.
On several occasions last year, the gold price mounted a rally and, toward the end of the rally, some new buying interest emerged.
There were some rather large additions at around the same time that prices peaked, but, once the price reversed course, investors sold their GLD shares like they were hot potatoes.
Well, that’s not happening this year.