Germany is starting to move some of their gold back from New York. Not much impact on the paper gold price.
The paper gold price is determined by paper trading, and whoever has the biggest supply of such papers will have the ultimate say on the price of paper gold.
As a monetary metal, or a wealth store, gold's value is subjective. So different actors value gold differently.
I value gold higher than the quoted paper gold price, so I am a buyer.
If you value gold lower than the quoted paper gold price, or expect the POG to drop, then you are likely to be a seller.
Truth will reveal itself at crunch time: when paper collapses, demand for real gold shows itself, and supply of real gold shows itself. Then the market place will resolve the imbalances, if any, by moving the price, of the real thing, either up, if supply is bigger, or down, if demand is higher.
If you perceive no paper collapse, then the paper masters will always be masters, and the game goes on: paper is the King.
My view is that, one day, soonish, real gold will resume its role as the real king of currencies, and every other currency of substance will be valued in gold, in real gold ounces, not GLD units.
