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Tracking Variance for GLD (New Gold ETF)

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Not applicable
Hi Guys, Can anyone please inform me as to what the acceptable tracking variance percentage for the New Gold ETF. By My Calculations as at 08:09 Rand Value R7.94 to the USD 1 ETF Unit / Share = 1/100th of an OZ Gold Spot = +- 1652 USD Thus: 1652 * 7.94 = +- R13'116 = R131.16 open price assumeing a 100% tracking. Now I know that this is not possible, but what is an acceptable percentage tracking?. If we take last nights close of R127 than the error would be 3.27%. is this acceptable. Any comments from the guru's would be greatly appreciated.
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9 REPLIES 9
THRESHOLD
Super Contributor
Buyers and sellers dictate the price - caveat emptor.
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SimonPB
Valued Contributor
Thresh .. there is a market maker ..
an it depends where you get you Rand and AU prices from compared to wherre they get theirs ..
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Sentiment
Contributor
The unit/share is also no longer 1/100th of an ounce, that saw initially the case but over time this decreases.
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Sentiment
Contributor
The unit/share is also no longer 1/100th of an ounce, that was initially the case but over time this decreases.
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Not applicable
Would you please be so kind as to explain to me what you mean by "The unit/share is also no longer 1/100th of an ounce, that was initially the case but over time this decreases"
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SimonPB
Valued Contributor
I would figure it has to do with the cost of storing the gold ..
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THRESHOLD
Super Contributor
I am well aware - and he too has a spread - but more often than not - the market maker is "asleep"; AND traders will move below the ruling price to drive a trade through. Actually the GLD is not too bad - but the instalments - NED's in particular are a shocker - the market maker behaves like a civil servant.
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striker
Super Contributor
- Simon -I have noticed the market maker for SBAS1 is inclined to soften it's offer price during the day, even while the silver price is moving up. Another thing, why is there no trading allowed at 4.50pm when final closing bids are in ?
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SimonPB
Valued Contributor
I don;t watch it, but remember they price off futures not spot .. orders after 4.50pm, they should be placable ?? Issue is no market maker after 4.50, but that should prevent one from trading (well you can;t do @market after 4.50, but limit be fine?).
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