String Pullers and Button Pushers Determine Gold ETF’s “Value”
String Pullers and Button Pushers Determine Gold ETF’s “Value” by Rory – The Daily Coin
Once again the corporate news outlets are all taunting Dalio’s ‘gold’ holdings and how great it is for gold. This is paper gold that follows the movement of gold in a rigged market. Gold moves higher, according to the COMEX and LBMA string pullers/button pushers and then gold moves lower based on the same mechanism.
The mechanism is explained first as the “metal put into storage to back the shares” has little or nothing to do with the performance of the ETF. Unless there is an ounce per share ratio and each share is the same cost as the acquisition cost of physical gold the “metal in storage” is meaningless. If physical gold reflected what is happening in our world, what is happening in the monetary world, the financial world, gold would already be sky high on the charts and Dalio’s paper gold would hold it’s intrinsic value of zero. Gold ETF’s are a reflection of an illusion “priced” by a mirage.
Will Dalio and Bridgewater benefit from holding a paper gold position? Probably, since he is an insider. The Bridgewater account, may/perhaps/possibly move out of the paper illusion just before a massive change to the downside either leaving the account with a breakeven or slight upside gain. Make no mistake about it, gold ETF’s are nothing but a “price chaser” and have nothing to do with physical gold.
Well-known fund manager Ray Dalio’s Bridgewater Associates maintained holdings in gold exchange-traded funds during the second quarter even as the price of the metal fell, filings show.
As of June 30, Bridgewater Associates held 3.91 million shares of SPDR Shares Gold, the world’s largest gold ETF. This was the same as at the end of the first quarter.
However, the filing shows that the value of those shares fell to $463.8 million from $491.7 million as gold prices declined. Comex December gold futures lost 5.9% during the quarter to finish June at $1,266.30 an ounce. Source
We can only hope that gold, at some point, begins to reflect the fundamentals of our economic, financial and geopolitical worlds. Once this happens, and it’s coming soon, we will see physical gold’s true value coming to the table. My guess is only the top people holding paper gold will be allowed to keep their position and all the “little people” will be forced out. Looking for a great washout leaving only the “big boys” holding paper.