So bullion banks were raiding the GLD ETF for gold and pocketing up to $50 on the spread, just for shipping it to Asia.  Eric Sprott has talked about this in his report.  That's a hell of a good business for these bullion banks.  But that is why a tremendous amount of tonnage was moving out of GLD.  It was because of massive demand for physical gold, not people selling it. There is still a significant premium in Shanghai and Vietnam right now, so the drain out of GLD will continue.  For all I know, that's the reason for the $32 takedown today, so the bullion banks can cover more shorts in the paper market and take advantage of an ever wider spread as they raid GLD and sell the gold into Asia at a massive premium.

Comments: Be the first to add a comment

add a comment | go to forum thread