Why would you think that? Are you suggesting that the sellers are right and the buyers are wrong, or do you think its just sloshing around somewhere homeless without a buyer?
Hint: For every seller, there is a buyer.
This has always been a moot point, frankly, because the declining GLD inventory is nothing more than a sentiment read on those who currently hold GLD, not the rest of the market. Conversely, a rising inventory would indicate new retail buyers/hedge funds want to have exposure to gold. But the market has changed since GLD's inception, because the main buyers since 2009 have been central banks who want the physical material not some paper promise, and not retail buyers/hedge funds. To follow GLD inventories is to follow the herd, and not the underlying market dynamics.
