gld lost 5 tons, page-6

hi mtl,

Firstly my premise is that the short side is in charge on the gold market.

If you want to short sell gold, you need to borrow from someone who has got some form of gold. You can't sell gold if there is no gold.

If they have 1 ton of real gold inn the system, then can create up to 100 tons of paper gold to be sold. (The 100:1 physical to pape gold ratio was from a Mr. Christian of CPM Group, a metals market dealer/market maker).

So more GLD gold = more supply of gold to be SOLD = bearish for POG.