"I cud not see how Skol was thinking the drain on the vaults was a weakening factor for gold."
So GLD is selling its gold, and emptying its vaults, so who bought the gold?
- If it has been purchased by another long term investor, then the impact on the price of gold in neutral.
- But if (as is more likely the case) it has been sold to short term trader (AKA a LBMA price maker) the gold is now for sale and its presence in the market will weigh on the price.
I don't think there is much doubt about who has been buying the GLD gold over the last three years....