Thus, for example, when GLD adds a gold bar, there is no assurance that the gold bar really exists unless it is in the vault of the custodian, HSBC. But the prospectus discloses that HSBC uses subcustodians and even sub-subcustodians, and what's worse, "the Custodian is not liable for the acts or omissions of its subcustodians". In other words, if the subcustodian does not have the gold, GLD "Shareholders cannot be assured that the Trustee will be able to recover damages from subcustodians...for any losses relating to the safekeeping of gold by such subcustodian".
To be blunt, these disclosures mean that there is no certainty that the gold supposedly owned by GLD really exists.
Investing in the new ETF GLD WARNING
Started by
Rogerdodger
, Nov 22 2004 08:26 PM
1 reply to this topic
#1
Rogerdodger
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- TT Member*
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- 26,882 posts
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Posted 22 November 2004 - 08:26 PM
You must read this James Turk article. Where's the Gold?
"Nature's Failure to Function in a 'Predictable Way'... 500 years ago?"
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
#2
rono
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- Traders-Talk User
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Posted 24 November 2004 - 09:52 AM
Ahem,
The new gold ETF (GLD) carries absolutely NO assurances that they have any real gold. Their prospectus simply states that they will track the price of gold.
Much better ways to play this run - funds, stocks and even real bullion. For bullion, unless you're buying gobs, you can simply buy American Gold Eagles and get about $20-30K in a shoebox that you stash around the house. You do not have to go to the expense of storage and insurance. Best prices can be found in any copy of Coin World.
For those wanting more, take a look at the Permanent Portfolio fund PRPFX. It's basically a hedge against the dollar, but contains a gob of actual bullion in Eagles and Mapleleafs and has substantial positions with comex in gold and silver.
http://bigcharts.mar...2&lf2=16&lf3=32
I'm not sure how to post a chart, but the link is above to PRPFX.
best,
rono
The new gold ETF (GLD) carries absolutely NO assurances that they have any real gold. Their prospectus simply states that they will track the price of gold.
Much better ways to play this run - funds, stocks and even real bullion. For bullion, unless you're buying gobs, you can simply buy American Gold Eagles and get about $20-30K in a shoebox that you stash around the house. You do not have to go to the expense of storage and insurance. Best prices can be found in any copy of Coin World.
For those wanting more, take a look at the Permanent Portfolio fund PRPFX. It's basically a hedge against the dollar, but contains a gob of actual bullion in Eagles and Mapleleafs and has substantial positions with comex in gold and silver.
http://bigcharts.mar...2&lf2=16&lf3=32
I'm not sure how to post a chart, but the link is above to PRPFX.
best,
rono
You must read this James Turk article. Where's the Gold?
Thus, for example, when GLD adds a gold bar, there is no assurance that the gold bar really exists unless it is in the vault of the custodian, HSBC. But the prospectus discloses that HSBC uses subcustodians and even sub-subcustodians, and what's worse, "the Custodian is not liable for the acts or omissions of its subcustodians". In other words, if the subcustodian does not have the gold, GLD "Shareholders cannot be assured that the Trustee will be able to recover damages from subcustodians...for any losses relating to the safekeeping of gold by such subcustodian".
To be blunt, these disclosures mean that there is no certainty that the gold supposedly owned by GLD really exists.
