Gold Breaks Records...Silver Breaks Banks
Gold has continued on its decade long bull run and although it has shattered all previous records it continues to be the asset of LAST choice by the majority of investors. For those of you who think gold is "in a bubble" I will challenge you to find 5 people you know who have ANY REAL GOLD that they hold as an investment. I do not mean paper shares of phantom ETF gold bars (like in GLD)…I mean the real thing. Physical ounces of gold in their safe deposit boxes or tucked away in shoe boxes in the back of their closets. Let me save you time… they are VERY hard to find!
If you want to take a chance on REAL wealth, invest in SILVER (read the article by Bix for more insight).
I don't need to do DD ... I don't have any reason to. I have done some DD on the SPDR website, and what I see is compelling evidence that the fund is on the up-and-up. You can have any last words ... after this I don't care to try to defend GLD as an honest fund.
When you buy a gold coin or gold bullion, what tests do you do? How do you eliminate the possibility of tungsten content? Overall, you might want to reconsider the entire sector, if everyone involved is dishonest theives.
Goldbumsnc: you buy routinely ... what do you do to test your coins?
no i was being extreme. the reason they're saying it is to give the banks an avenue to get rid of the tungsten bars. to the eye, these bars will appear to be solid gold of .999 fineness.
they do NOT test the bars (ie they don't split them to see what's in them). they don't test the fineness.
IF they see actual gold and not just paper books, they just look at the engraving for the fineness (no actual checking) and check to make sure it's yellowish. that's the extend of an audit. meaningless.
my point is, you obviously haven't done the DD, yet that doesn't stop you from speaking as tho you have.
And read the report from the auditor, and you will see that every bar checked was pure gold.
I just sold my DZZ. This message board is populated by gold investors, not GLD investors. I don't feel obliged to fully perform DD on GLD, as it is not critical to my investing.
I think the suspicion by the gold bugs is over-the-top. Read the audit and show me the lead. As I keep pointing out this fund has the odds in the house's favor. They don't need to cheat, and it might cost them the people willing to play the game. I think the "no guarantees of fineness" is not saying they can buy lead, and pass it off as gold. Again read the last audit. My recollection is that it was all 0.999 and higher fineness.
you clearly have not read the prospectus.
>>I think the overwhelming evidence is that GLD is a well-designed, audited, and honest ETF
again more ignorance from vm, big surprise. tell me vm, if gld is so well designed and honest, why to they go out of their way to tell people in the prospectus they could hold lead and there's not a damn thing you can do about it. go read it. the specifically state, they do NOT guarantee the fineness of the gold (that means it could by pyrite). they also specifically say they do NOT adhere to the London Good Delivery Standards.
"Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss."
" Neither the Trustee nor the Custodian independently confirms the fineness of the gold bars allocated to the Trust in connection with the creation of a Basket."
"The gold bars allocated to the Trust by the Custodian may be different from the reported fineness or weight required by the LBMA’s standards for gold bars delivered in settlement of a gold trade, or the London Good Delivery Standards, the standards required by the Trust."
those are just a few quote from the prospectus you have clearly not read.
I like talking to people with different opinions than mine. I don't like when a position is taken that GLD is a complete fraud. There is always a chance that it is, but I think the overwhelming evidence is that GLD is a well-designed, audited, and honest ETF.
If your argument is that gold is not in a bubble because GLD is the primary gold vehicle, and it has no gold, I find that a bit useless.
I shouldn't say that gold is in a bubble. A bubble is usually much more inflated than the current gold prices. I think that gold is overpriced right now. That is just not a very investable opinion, because there is ample evidence that demand is very strong.
I currently have some DZZ, from $10.70 that I will sell today. Yesterday was a $11.20 close, and I was hoping for a $11.50 opportunity (current price $11.11). Prior to this position I had a gold "long" position, and prior to that a DZZ position.
I think at some point gold will pullback to $1000, but it might go to $1300 next, who knows. I think when the economic recovery strengthens, gold will definitely lose its steam.
I think gold is in a bubble. It does not take universal participation for a bubble. It helps but is not necessary. For example quarterbacks could be at bubble prices in the NFL ... a very small, limited business group. A rare stamp can be in a bubble, although only a few collectors might appreciate it.
Further, the gold ETF's are real gold. You claim GLD is a fraud, but I don't see any evidence to back your claim. On the contrary, I see a website with the amounts and list of the gold assets, and twice a year auditing. I see a company which sells new shares in the ETF, and only has one obligation: to buy gold at the proper ratio to back it.
Everyone here claiming that GLD lends its gold is incorrect.
Here is the current accounting:
On this page, you can get a PDF of the list of gold bars:
Further there are other ETF's which own gold. Pretending that all the gold is non-existent, does allow you to claim no one owns gold, but that is an unbelievable argument.
For the most part, I agree with you that GLD is most likely not a scam, but I do worry that thier maybe an equivelent of CDO's or Swaps sold against the funds holdings. The fund is a finacial tool against real gold. Thier is enough gold in the world to fill demand by this ETF. The ETF can have delivery filled from any gold market in the world, it may take a few days to ship but the futures markets still seem liquid and able to meet demand. I posted an article yesterday from China where Vollume was about 700 plus tons in May. I post the London's trading volume was about 24,000,000 ozs a day in May. There is gold out there to be bought! It appears we still have supply and demand!
Forget about hiding your gold and silver... and forget about the paper gold and silver(GLD SLV). imo with the gold/xau ratio of 7( a strong buy area)just invest in SLW and RGLD. Please do your homework though. The miner's, imo are very undervalued but with these two companies they do not do the mining but get the royalties.
all the chinese and east indians i know have gold, indian usually 22k and the chinese 24k in terms of jewlery. that's why they usually hire off duty police officers at their weddings. they unlike americans have learn first hand that government currency are not to be trusted.