I've noted before that, while GLD frequently inhales gold bullion, it rarely sells; and when it does sell, it’s usually a sign of capitulation.
Why does the GLD rarely sell bullion? Contrary to what you might hear in the media about the gold “trade” being “crowded” -- or about “hot money" -- the truth is that gold is hugely under-owned. In fact, according to the World Gold Council, if global pension funds decided to increase their exposure to gold by just 1.2%, it would require more than 44,000 tonnes -- or roughly 27% of all the gold that's ever come out of the ground. (more)
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