"Then as the SPX started selling off again a couple weeks ago, the GLD draws again slowed and then stopped entirely. We are seeing the same phenomenon that happened during the SPX's last pullback. The capital rotation out of GLD shares into general stocks looks far less attractive when the stock markets aren't levitating day after day after day. 2013's GLD mass exodus was driven by levitating stock markets!
NK, thanks for that. This has been my thesis too this year, a mini-run of what happened in the latter half of the 1990's. What has been sensational is the RATE of selling in 2013 by investors.
Nonetheless the market has coped very well, China is receiving its gold and equilibrium more or less maintained despite the shocks, if you read Bron Suchecki's blog over at the Perth Mint.
