As I feel this is still an outstanding issue of GLD, I will repost this here:
“Did anyone try calling the GLD hotline at 866-320-4053 and asking for any numerical details on GLD's insurance? I reached a State Street representative that told me to look at the prospectus but I am sure the prospectus doesn't give any numbers or percentages to how much of GLD's physical gold is insured. The prospectus only vaguely mentions HSBC holding some kind of insurance policy for GLD. This State Street representative proceeded to feign ignorance when informed of this and said they were just the "marketing agent" for GLD. What kind of marketing agent doesn't know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.
There are not many ways for the average investor to verify GLD's physical assets since most retail investors won't even have the right to redeem their shares for physical bullions. The prospectus is full of legal writing protecting GLD organizations from any liabilities but not a single clause to protect investors from bullion lending. On top of everything, the GLD manager - State Street, has been shown to be less than trustworthy (Carina CDO, multiple instances of forex fraud). Where is the credibility in GLD?"
No problem. I repost these threads because I suspect a good number of GLD investors have overlooked these issues. I don't exactly blame them either since the GLD marketing firm has done a good job keeping these issues out of sight.
"SPDR Gold Shares are intended to lower a large number of the barriers preventing investors from using gold as an asset allocation and trading tool. These barriers have included the logistics of buying, storing and insuring gold."
So much for that 'insuring' part - false advertisement from the people behind GLD. Of course GLD can't have an insurance company poking around what it doesn't own so no surprise here.