All You Need To Know About Gold ETF (3)
Delivery standards
Gold ETFs are generally required to meet certain criteria for the purchase and redemption of gold, otherwise, the custodian will be subject to the difference in gold color Mis-calculating the fund's net asset value, thereby creating risk. The major gold ETFs are based on London Bullion Market Association approved deliverable bullion (London Good Delivery Bar) as a delivery standard, and the subscription and redemption of the Fund is carried in gold bars that comply with this standard. Funds and members can deposit and redeem gold assets with confidence and convenience. This form of trading has greatly contributed to the development of gold ETFs.
Net asset value
NAV calculation
Net Assets Value (NAV) is calculated as the net asset value (NAV) of the gold ETFs purchased and redeemed in the primary market. and secondary market trading mark-up benchmarks. Specifically, NAV is equal to the value of the Fund's total assets minus liabilities. Custodians of major gold ETFs use the London Gold Market afternoon session price or the London Gold Fix in calculating the NAV As GLD is traded on the New York Stock Exchange, if there is no London Fixing price on that day or if the price is not available during New York time, then the GLD will not be traded. If the London Fixing Price has not been finalised by 12 noon, then the nearest London Fixing Price may be used to determine NAV, unless the custodian and the The promoters all agreed that the price was inappropriate.
Price impact
The impact of gold ETF funds on the price of gold
The weekly fund positions and commercial positions in the gold market released by the CFTC are used as the object of research to compare and reveal the influence of fund and commercial positions on the price of gold through appropriate statistical methods.
The COMEX Fund Positions report divides positions into two categories: reporting and non-reporting positions. Of these, the reporting position is the most important, with commercial and non-commercial institutional positions being part of the reporting position. Commercial institutions mainly refer to international gold producers and consumers, etc., while non-commercial institutions mainly refer to commodity funds, including mainly hedge funds.
Commercial and non-commercial institutional positions are further divided into non-commercial long and non-commercial short positions, commercial long positions and commercial Short positions. Other smaller hedgers and speculators are classified in the "non-reporting positions" section.
1. Comparison of non-commercial, commercial, non-reporting positions
The strength of commercial institutions dominates the COMEX fund positions, with their share of positions remaining at 50% or so; non-commercial institutions, mainly funds, are emerging as a pivotal market force; and a smaller proportion of non-reporting positions are also More stable, remaining between 10 and 20 per cent since 2000. On the whole, non-reporting positions show a declining year-over-year trend, with non-commercial and commercial forces almost completely at odds with each other.
2. Comparison of various types of long positions
COMEX non-commercial long positions were lower than commercial longs from 2000 to May 2001, but have been lower since 2003. Non-commercial long positions have increased sharply since August. Non-commercial long positions were more volatile, reaching as high as 251,717,000 lots in February 2008, compared to April-August 2004. Below the 10,000 lot level. On the other hand, commercial long positions have been more stable over the same period, fluctuating up and down the 80,000 handle. Non-reporting long positions are relatively small, generally fluctuating at 50,000 over the last 9 years.
3. Changes in non-commercial institutional net position positions and gold price movements
Fund position changes are very forward-looking and contribute the most to the broader market, so from the stage fund positions can often be Predicting the direction of the international gold market. A very important indicator for analyzing changes in the Fund's position is the non-commercial net position, which is the difference between the speculative long and short positions, also known as the Net speculative long positions. since March 2008, the action of the international spot price of gold to challenge all-time highs has become an international The gold market is a beautiful scenery, the COMEX non-commercial net position and the performance of the international gold spot price in the same period. Out of extremely strong linkage.
4. Comparison of various types of short positions
Commercial institutions have much higher short positions than non-commercial institutions and, for the most part, commercial and non-commercial institutions The trend in the short position of the Fund is in the opposite direction, i.e., while commercial institutions continue to increase their short positions, the Fund continues to decrease its short positions. Strength. This indicates a serious divergence between fund forces and the commercial establishment in their judgments of international gold price movements.
