It's about time goldbugs got off the 'paper gold' nonsense.
Paper gold amounts to real gold, GLD is suffering billions of dollars in redemptions, so are other ETF's. GLD's stockpile is down over 40% from its peak and dropped 8 tonnes in 4 days last week.
When GLD suffers redemptions, it has to sell the gold it owns to return money to punters who have quit the fund. What we are seeing is the ultimate margin call on gold resulting in cascading redemptions that send prices lower and lower causing more punters to cash up and more declines.
ETF's are very liquid, and large numbers of speculators cashing up may have some unintended consequences as they sell ETF's which subsequently sell more and more REAL gold.
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It's about time goldbugs got off the 'paper gold' nonsense.Paper...
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