I'd imagine what he means is that the ease of entry into the market by way of ETF (vs buying and holding real gold) has probably made the gold market somewhat easier to speculate against.
In that case, "real" demand is driven by the traditional motivations i.e. as a store of wealth, hedge against inflation etc.
The less "real" demand then would be people buying gold to make a quick buck on a rising market.
I thought maybe that was what the poster was driving at but I guess what confused me was the implication that this might be a bad thing?