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Imagine gold's price if any of this cash had gone into actual metal
Gold ETF Swells To Pass $50 Billion Milestone
By Carolyn Cui
The Wall Street Journal
Tuesday, June 29, 2010
http://blogs.wsj.com/marketbeat/2010/06/29/gold-etf-swells-to-pass-50-bi...
Amid all the market doom and gloom, the world's largest gold fund is quietly celebrating another major milestone: SPDR Gold Shares, an exchange-traded fund backed by physical bullion, has recently surpassed $50 billion in assets.
Driven by concerns over the euro zone sovereign debt crisis and a double-dip recession, investors have plowed $5.4 billion of net cash into the fund during the first five months. At the same time, gold prices have continued to set records -- gaining 13.4% so far this year -- helping boost the fund's size.
As of Monday's close, the fund boasts total assets under management of $53.3 billion.
The fund -- known as GLD because of its ticker symbol -- now hoards a total of 1,316.18 metric tons of gold and rivals most of the world's central banks. If GLD were a central bank, it would rank fifth -- just below France and above China.
Gold's safe-haven trait was in evidence again on Tuesday, as stocks were hammered globally and commodity markets were mostly a sea of red. Gold futures for July delivery eked out a gain of $3.8, or 0.3%, to settle at $1,242 per troy ounce at the Comex division of the Nymex.
Now investors are holding their breath to see whether the gold fund can pass out the $75.6 billion SPDR S&P 500 to become the world's largest ETF. The gap between the two ETFs -- both run by State Street Corp. -- has contracted sharply this year from $44.7 billion to $21.3 billion as gold prices have gained and stocks faltered.
Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource
Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.
For Prophecy's complete press release about its production plans, please visit:
http://www.prophecyresource.com/news_2010_may11.php
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