Do a search with 'India Gold Restrictions' and get an eye full of the natural law of unintended government action. India officials are so worried about their India current account deficit that they raise the levy on gold imports, now at 6%, and this has scared global gold traders to lower prices, but, wait a minute, lower prices has increased India's demand for physical gold! People in India are flocking to buy gold, double the normal amount! When most scared hands give up and finish selling their ETF positions then gold will resume another run back up. This is just another natural cycle, made worse by the ETF's.
I thought it was 7% but India is doing something else to correct the account deficit, they are trying to lay the ground work for an emerging gold mining industry in India. The minerals and mining bill is key legislation and since they only produce internally 1% of demand for gold it makes sense that they will correct the account deficit by mining more gold themselves instead of importing it.
At some point when the pain is so bad holders will go numb and just refuse to sell (seller exhaustion), as they would rather be buyers, of gold and Goldcorp at some low price. Are we there yet? The chances favor seller exhaustion here. I've reached that point. No way am I going to sell. I'm holding for the value of un-mined gold in the Goldcorp ground now. The 2% dividend is now a salve for the pain, that doesn't offer much support. Look a year out and what do you see?