So whilst the West is dumping paper gold, the East is buying physical. And this is exactly what happened last week. Gold fell almost $100 on selling of massive amounts of paper gold. But something very different happened in the physical market. Mutual Funds and ETFs bought over 30 tons of physical gold last week. In total these funds have increased their holdings this year by over 46% or 900 tons to 2,840 tons. As we can see in the chart below, the buying by these funds has been strong all year. When gold corrected by $100 in May, their gold holdings continued to increase.