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Old 05-14-2020, 10:03 AM   #1
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GLD gold vaulting is curious

Quote :
... buried deep within the latest SPDR Gold Trust (GLD) quarterly filing (10Q), filed on 8 May, we see the following admission from the Trust’s Sponsor, World Gold Trust Services (the US subsidiary of the World Gold Council):
Quote :
“Since April 15, 2020, gold was held by a subcustodian (the Bank of England), and the greatest amount of gold held on April 27, 2020 was approximately 45.91 tonnes or 4.4% of the Trust’s gold.”
This means that during April, HSBC used nearly 46 tonnes of gold stored in the Bank of England gold vaults to add to the SPDR Gold Trust, instead of using gold at HSBC’s own commercial London vault.

And why is this important? It’s important because it implies that:

a) there isn’t enough gold in the HSBC vault in London to fulfill SPDR Gold Trust basket creation requests from GLD Authorized Participants (APs).

b) that gold which is ultimately borrowed central bank gold at the Bank of England is being used as a source of GLD gold holdings.

c) that there are physical gold float shortages in the London physical gold market as well as liquidity problems of LBMA market makers in the London paper gold market.

Houston London, we have a problem...
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