If much of the physical gold which is above ground has been sold several times over with paper promises (and I certainly believe it has), that realization will completely change all the perceptions.

The desire, worldwide, will then be for physical. Some will still use GLD for trading profits, but people won't be under the illusion that they own gold; they will know they are trading on the price for dollars.

When the dollar starts going down the tube for real (which can happen with extreme suddenness at anytime) of what value will the GLD traded profits be? Everything gained from the gold price rise is lost to the declining value of the dollar. The smart ones have already positioned themselves for this occurrence.

The rest, who have not thought this far ahead, will be terrified of what they have to pay for real physical gold, if it can be had at all, and will begin a run into the mining sector that will take our breath away.

For right now "paper" still controls the market but things are changing very fast now.

P.