GDL ETF Outflows to Continue

Unlike some news sites and other blogs saying that Friday's 20 December GLD inflow for the first time in six weeks is surprising. I say it's just an anomaly in an ever decreasing GLD ETF.

Indeed, the GLD ETF added some tonnage on 20 December...

19-Dec-13	808.72
20-Dec-13	814.12
23-Dec-13	805.72

...just to lose it all immediately a business day later on 23 December.

The reason why I say this is that the gold price is much too low at this stage for the Chinese not to buy the physical gold.

Just look at the latest high premiums in Shanghai of 1.5%. So yes, the GLD ETF will continue to get drained unless the gold price goes much higher.