Ben Bernanke's new blog: interest rates, page-20

I think the problem is a little more tangible than that.

The COMEX locals are net long, and have been for a couple of years.

How do I know that?
- The depressed price action; (the PoG has one foot nailed to $1,180)
- The WGC demand and supply reports; (ETF 2013 divestments have no offsetting investment)
- Experience of wholesale flow trading. (The bullion banks buying gold from the ETFs over the last couple of years lay off almost all the price risk on their physical holdings into COMEX. This is common practise and confirmed in their risk disclosures.)

For the gold market, a nasty problem in the hand is worth two conspiracy theories in the bush (and change).