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Gold ETF Questions
Question:
After reading this article provided by Pascal (immensely informative, thank you Pascal):
http://www.scribd.com/doc/144050211/...nt-David-Evans
If every CB and bullion bank have an incentive to drive gold prices down, why has it risen in value up until 2013? Would it not have been held steady given the amount of power players like the Fed and JPM do?
In addition, I am under the impression that the price of GLD reflects the price of paper gold. However, if this is so, why would redemption by the bullion banks on GLD affect physical gold given the increase in demand by foreign investors?
Last edited by lulzasaur; 06-06-2013 at 08:20 PM.
Reason: Sorry to those that read before, I edited my post immensely from earlier after reading Pascal's article.
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