| From Indiatimes.com: Gold exchange-traded funds (ETFs) are feeling the pinch due to the shortage in physical supply of the bullion. Gold ETFs are open-ended mutual fund schemes that are backed by units of physical gold (0.995 purity). The recent drop in gold price has led to a flurry of demand, which bullion banks were unprepared for. This has caused a shortage in supply.
As a result, the demand for paper gold has risen and ETFs are trading at a premium of between 35% and 5% to the spot price of gold in the last few weeks..... Full Article: Source
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