Rumor tells us something we’ve expected for a long time that GLD is leasing gold, or using sub-custodians to outright sell their bullion. We understand GLD has been asked to provide 3rd party audited and visual proof that the gold they say they have is really in their vaults.
After seeing how the SEC covered up the Madoff scandal for 10 years that we know of, we suspect even more so now that there could be things going on with the ETF’s GLD and SLV that should not be going on. As we have sited over and over for years, the SEC and CFTC exist to protect the old boy network. Both are arms of Wall Street not the investor.
Could it be that both GLD and SLV are not playing by the rules? Perhaps but we just do not know. We saw 45 tons of gold supposedly purchased by GLD last month. That is a lot of gold. How were they able to purchase this gold or did they go into the derivative market to do so? If the gold had come from Comex it would have been very easy to spot. In fact if it came from any exchange it would have been obvious.
So, if it didn’t come off exchanges where did it come from? Perhaps the World Gold Council can tell us?
How does one buy 45 tons of gold in a physical market where there is so little supply that coin minting is closed down by five major mints? That said, and seeing what has transpired with Madoff, and watching the CFTC refuse to find any wrongdoing on obvious market concentration and manipulation, we find it hard to believe the gold bullion was purchased and that derivatives were used in its stead. If that is correct than GLD holders only have part of the gold they are paying for and the rules have been broken. Thus, we call for an investigation by Congress, not the SEC, because they are part of the elitist crime family. At least in Congress we can get the problem into the open and find out if we are right or wrong.
If we are correct these acts destroy the value of GLD. Investors buy GLD because it holds gold bullion and that is what the prospectus says, not questionable derivatives. Do we have another elaborate scam or a Ponzi scheme? Let’s ask Congress to find out.