Gold ETF’s back in the fray

We have well documented the huge outflows of gold from the ETF’s last year as the speculators fled to shares to ride the QE boosted equities market.  The largest ETF, GLD, alone shed 557 tonne.  Well in the first month since December 2012 this February saw net additions, with 10 tonne added as investors strongly moved back into the ‘paper’ gold shares.  Add this to the unrelenting buy up of physical gold by China (and now India in the last 2 months is back to higher levels) and it puts more pressure again on a market with restricted supply.  Add a record low Comex inventory set off against still very high numbers of contracts that could demand delivery of gold that may not be there.