The GLD Gold ETF shares outstanding rose slightly to 291 mil. Each GLD shares is equal to an ounce of gold. The GLD currently holds 269 mil gold ounces. The difference being the 0.40% expense ratio.
The last times gold peaked in 2011 and 2020, ounces held by the GLD reached 450 mil gold ounces.
You can look at this as a sentiment measure for gold. When investors are climbing over each other to get gold, GLD shares outstanding rise. The price of gold is moving higher, but investors aren’t climbing aboard yet. This is a sign that gold has a great deal more to rise.
GLD shares have to increase 54% to reach peak 450 mil ounces. This implies a minimum gold price of $3,719/oz.
Investors are so far indifferent to this move. Wait until they climb onboard the GLD spiking the shares higher.
We have a long way to go.
