Taking a key point from the above article in the Wall Street Journal
"And many GLD investors aren't experienced in gold investing. Between 60% and 80% of GLD investors had never bought gold before, estimates Jason Toussaint, managing director of the council. No one knows how those newcomers might react in a sharp downturn.

If GLD shareholders get spooked by drops in the gold price and sell en masse, the fund would have to dump metal to meet redemptions, possibly accelerating declines by prompting others to sell even more. Because GLD trades on an exchange, any sell off would be immediately visible, unlike typically opaque bullion sales."

Do you think that this statement is valid, and if so what are your thoughts on the SLV?      Jeff--

Answer: Yes it is "valid" gold would be sold and what we would not know is how much is actually changing hands physically. It is my view that much of the selling would take place on paper between dealers. For silver the same situation exists, any selling whether on paper (GLD or SLV) could influence the price in a significant way if enough were sold. However, let's look at the other side of the coin so to speak, I did an interview with Trace Mayer (RuntoGold.com) pointing out how loosely the term "gold" is used in the GLD prospectus. Because of this fact some major players have sold GLD and bought the real gold instead. So, the answer really has two parts, if we are talking about can the selling of paper gold or silver still drop the price the answer at this point is still yes, but as more and more holders of GLD and SLV determine these proxies are NOT as good as GOLD but only represent price movement there might be a backlash as selling of GLD ( or SLV) is done and at the same time orders go into the bullion markets for the same amount. This would produce some very interesting results.

David Morgan