by Dan Norcini
WOW! This is a big deal.
Demand for gold has exceeded the issuance of new share creation in the iShares Gold Trust ETF, “IAU”.
The way I understand this process, the owner of the ETF, Blackrock Inc. looks to have UNDERESTIMATED the amazingly strong demand for gold and did not register with the SEC to obtain additional shares.
Based on what Dow Jones is saying, under the Securities Act of 1933, subscriptions for new shares in excess of those registered requires additional filings with the SEC.
There were so many buyers of IAU, that the ETF ran out of available shares before the fund could create more!