SPDR Gold Trust (GLD) Hits Record High

SPDR Gold Trust (NYSEArca:GLD) soared to over $140 as gold bullion closed at $1438 after soaring to $1442, and will continue to rise as investors attempt to protect themselves. Silver actually hit a new 35-year peak at $37.19, and getting closer to the $40-$50 goal we set last fall.

Gold is no longer just a hedge against QE2 and inflation– or a hedge against deflation. Or a hedge against a declining dollar. Today, gold has become an expression of the instability spreading from Tunisia to Egypt to Libya to Syria, to Yemen, to Saudi Arabia, to Iran, to Bahrain– and those street dissensions to come, conceivably in Kuwait, UAE, and elsewhere. Oil supplies are threatened. Buy gold and silver.

You don’t believe? Look at a chart of gold against silver. They are moving in absolute tandem now. Any Sheikh trying to preserve his fortune must own gold and silver.

In the US the price of GLD, the largest gold ETF, hit a peak of $140 and looks set to breakthrough that mark tomorrow or the next day. Let’s see if net selling turns into net buying.

SPDR Gold Trust closed Wednesday at $140.34, rising $1.29, or 0.93 percent.




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Ron Paul to Examine Gold Bullion Programs at U.S. Mint

Rep. Ron Paul, R-Texas, has scheduled a meeting on April 1 for his U.S. House Subcommittee on Domestic Monetary Policy to take a close look at the bullion programs at the U.S. Mint.

Last week Paul introduced H.R. 1098, the Free Competition in Currency Act of 2011, that would repeal legal tender laws in order to prohibit taxation on gold, silver, platinum, palladium and rhodium bullion. The bill has been referred to the House Committees on Financial Services, Ways and Means, and Judiciary.

Paul is a strong advocate of currency backed by precious metals and a U.S. gold standard.

The Mint is now setting the stage for a major overhaul of the metals composition of coins and how the Mint is going to manufacture them. The Coin Modernization, Oversight and Continuity Act of 2010 gives the Mint greater flexibility in meeting the demand for bullion coins as well as meeting the demand for gold and silver numismatic items.

Congress used to regulate the qualities and quantities of U.S. bullion coins.




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Goldman (NYSE:GS) Issues Gold-Linked Structured Notes

Goldman Sachs (NYSE:GS) issued $66.5 million in structured notes linked to gold, as prices continue to break all-time records and solid support continuing for the precious metal.

There is no interest on the notes, as investors receive profits at maturity, with a price cap of 17 percent. The securities, which were sold on October 1, are for one year. JPMorgan Chase (NYSE:JPM) is the distributor for Goldman.

Investors in the notes have their principal protected at maturity unless prices drop by over 20 percent below the entry level price of $1,316.25 on any given day.

The notes aren't backed by gold bullion as ETFs are, but by the credit of Goldman.

The securites issued by Goldman are basically bonds bundled with derivatives. Investors reportedly have been buying them as a brisk pace.

Bloomberg data show structured note linked to gold have grown to $109.8 million in September, over three times the $35.6 million issued in August.

Poor GDP Report Pushes Gold Prices Up 1 Percent

While gold has been hobbling along throughout July, the lower than expected numbers of the GDP report caused it to surge in the last trading day of the month by 1.1 percent, reaching $1,183.90 an ounce on the COMEX division of the NYMEX for December delivery.

Even so, it still finished July down 5 percent, falling $62.68. Spot gold price increased to $1,180.97, rising $12.20. This was the worst month for gold since December.

Gold surged on the day because gold investors rushed to cover their short positions in response to the GDP numbers.

Nothing has changed in the fundamental reasons of why gold has continued to rise over the last decade, and that will continue on.

Even the government attacks on the alleged fear-mongering of those pushing gold coins over gold bullion won't deter the rise of gold. The government attack is to shut up the voices of those who rightfully point out the risks related to the governmental policies around the globe which have brought to the economic catastrophe we're now experiencing.

Using Glen Beck as a focal point and the gold company he works with to sell gold coins and bullion, the government is using a few complaints (assuming they're even legitimate) to make it look like the reason gold is going up is because of unwarranted use of fear to sell gold coins rather than gold bullion.

The idea is to make a connection between gold and fear in a way that makes it seem like a bunch of hype. Don't think this isn't being orchestrated, even if a few innocent dupes are being used by the government to attack people investing in gold, which is a daily reminder of the failed and irresponsible policies of the government and Federal Reserve.

Giving the advice to acquire gold coins rather than gold bullion has been one that has been offered by many advisers for years, and it will continue to be because it's much more portable and easier to hide than bullion. Of course how many people can even afford to buy gold bullion in the first place, making this even more suspect.

Anyway, back to the fundamentals. Gold will continue to rise because of the practices attempted to be hidden by the government and Federal Reserve of continuing to print money and "stimulate" the economy, the ongoing sovereign debt crisis in Europe, and increasing and dangerous government deficits which are becoming more risky by the day.

Investors have been caused to dangerously relax because of the so-called banks stress tests in Europe which made it appear as if the majority passed with flying colors, while experts said they were in reality a joke. Even Citigroup (NYSE:C) noted, of the banks tested, 24 should have failed rather than only the seven asserted to have failed.

Even the downgrade of Ireland's debt recently was shrugged off as irrelevant by investors, who seemingly have swallowed the kool-aid.

The economic condition of the United States is dismal, China is being forced to slow, and Europe is in shambles, yet nobody seems to have remembered these things.

Maybe the BP (NYSE:BP) fiasco temporarily got their attention off of the ball. But that is close to being over as far as permanently plugging the oil well goes, and people are getting interested in other things again.

The fact that gold moved nicely today on just missing the GDP numbers by a small amount, shows investors are looking for a reason to push prices up again, and I don't think it'll take that long before it happens.

J.P.Morgan's (NYSE:JPM) Gold Storage Facility

J.P.Morgan (NYSE:JPM) announced today it will be opening a new gold storage facility in Singapore in the latter part of 2010, built in response to growing demand from institutional and retail investors looking for a place to store their gold bullion.

A number of those holding physical gold bullion want or need multiple places to store their bullion, which a new one in Singapore will help meet those demands.

The new storage facility will also help serve the market dealing with physical settlement of futures contracts, which while including gold, will also help with other precious metals as well.

It'll also serve as a storage vault for exchange traded funds and other deals which involve physical settlement of gold or other precious metals.

SPDR Gold Trust (NYSEArca:GLD) Ton Record

The SPDR Gold Trust (NYSEArca:GLD) has the highest metric tons of gold assets held by the fund, as the ETF increased its metric tons by 19.78 to 1,185.79 tons, according to their Web site.

This is the highest monthly increase since February 2009.

SPDR, backed by gold bullion, is the sixth-largest holder of physical gold in the world.

Range over the last year for SPDR have been from 88.82 - 119.54.

Safe haven continues to be the story for gold and gold prices, as equities continue to fall out of favor.

Gold price today are at $1,208.00 when I last looked.

SPDR Gold (NYSEArca:GLD) Record Bullion Holdings

SPDR Gold Trust

Gold bullion held by SPDR Gold Trust (NYSEArca:GLD) has reached record levels, as the exchange-traded fund added 9.7 metric tons of gold to its reserves, the highest ever held by the ETF.

Holding as of Thursday for SPDR stand at 1,140.43 tons after adding the physical gold to their holdings.

The increase in gold was the largest addition in over six months, and represented an increase of 0.9 percent.

SPDR said their net asset value stands at $42.09 billion.