Gold Rush Exhausts Storage Space, GLD, GDX, KGC, AUY, GG
November 24, 2009 1:55 PM
The recent gold craze done wonders for gold ETFs like SPDR Gold Trust (ETF)(NYSE: GLD), Market Vectors Gold Miners(ETF) (NYSE: GDX), Kinross Gold Corporation (USA)(NYSE: KGC), Yamana Gold Inc. (USA) (NYSE: AUY) or Goldcorp Inc. (USA) (NYSE: GG). It has also shown us some weird stuff – the latest being fleets of armored truck which are carrying mounds of gold bars and coins out of HSBC’s vault in New York City's Fifth Avenue. The reason: HSBC, with one of the largest vaults in the US, has nowhere to store all its customers' gold. So it is moving out small gold holdings from retail clients to make way for more lucrative institutional customers.
Many vaults are feeling the pressure of the gold rush amidst continuing worries about the recession and a declining dollar. Gold gained $17.90, or 1.6%, to $1164.30 an ounce on Monday; it has already gained a record 32% this year. Investors are not content with investing in financial contracts linked to gold, like SPDR Gold Trust (ETF), Market Vectors Gold Miners(ETF), Kinross Gold Corporation (USA), Yamana Gold Inc. (USA) or Goldcorp Inc. (USA), but are keen on possessing the metal itself as it continues to set new records.
