This action is more commonly seen from short covering. GSS has one of the higher short ratios among the miners, and has likely been a running gift to shorters for a few years. It looks as if a number of players have concluded that bankruptcy (pps - $0) is not going to occur after all, and they are exiting (likely still at a very good profit).
This phase will be a back and forth between old shorts looking to buy, and new shorty arrivals selling to them, as most GSS longs won't be playing the in-and-out game. As the phase progresses, the mix of old-term shorts declines and new-term shorts increases; the new comers have a lot less tolerance for pps increases.
A future phase, assuming the pm bull is in fact stirring, will bring actual new long buyers, and a different kind of price rise. (IMHO, current action is enjoyable, but still early game action).
Pretty easy to show that regulation hasn't been working, therefore even more regulation isn't the answer.
How about a competing exchange, one where short selling is simply forbidden; can't sell what you don't own? Then the answer is simple competitive capitalism: company's can agree to have their shares listed/traded on exchanges where short selling is supported or on exchanges where it isn't.
Just a few tax rule reminders for the dreamers:
1. GGN produces distributions (not dividends) classified as Return Of Capital (ROC).
2. ROC reduces your cost basis (buy a share for $10, get $2 in ROC back over time, and your cost basis when you sell it will be $8).
3. You pay capital gains on any gain when you sell shares; either short term (your income tax rate) if held for less than a year, or 15% to 20% (depends upon your tax bracket) long term capital gains if the shares sold were owned longer than a year.
4. Should your investment end up producing ROC equal to the entirety of your invested dollars, the ROC begins to be treated as income (cost basis cannot go below $0), and is subject to your income tax bracket. Further, if you sell shares with a $0 cost basis, the entire proceeds are further subject to capital gains.
Although this fund is a closed end fund, its rules allow the managers to both buy (retire) and sell (issue) shares as they see fit. When silly premiums are present, a great deal of what keeps things going is new investors being sold shares at double the cost of actual underlying assets.
Look into the semi annual and annual reports, and you'll find that PGP has a constantly growing share count, and that the plot of shares outstanding over time has humps in it whenever there is a high premium.
Point being, a quick assessment of out-of-wack may be overlooking the underlying facts that the world at large is gasping for funds that pay, will pay double the cost of NAV, and the fund managers have found a fairly sustainable way to milk that into survival in an ongoing fashion.