ZeroHedge speculates that we’ve entered a parabolic purchasing period for previous metal ETFs:
We have entered into a parabolic purchasing period for not just GLD, but for all other precious metal ETFs, which struggle to keep their NAV at 1. In fact, if those who claim that ETF are among the primary sources of gold demand currently, such reindexing is now creating a positive feedback loop, whereby daily record gold prices are forcing the ETFs to purchase more and more gold to retain a mandated NAV, which in turn is leading to even higher prices on the margin.
Interestingly, gold got smacked down pretty hard yesterday. But it still stands at $1,241, up over 34% over the past 12 months.