Insurance is just one of its weaknesses. I doubt that there is insurance on the gold stash for it would open a can of worms that State Street would want to avoid. The insurer, of course, would want to know about safety, access, audits, claims on it, etc to even come up with a premium for the insurance. Now, State Street would never accept such intrusion, in part because the gold stash is probably used for all kinds of shady purposes, including backing shorts.
Just read the part in GLD's prospectus where the custodian subcontracts to subcustodians but has no right to audit or visit the subcustodians' vaults. It then requires third-party audits. So we can have the custodian own or pay off the third-party auditor to give a clean audit, while knowing that the subcustodian leases out the gold into the market.
If GLD shareholders suspect so and ask custodian to prove otherwise, custodian can simply say "we have no right to check the subcustodians, see the prospectus, but here is a clean audit result" however laughably compromised. If GLD or State Street goes bust, no holder of GLD has any claim to any gold. GLD holders simply become unsecured creditors along with all other creditors, with no precedence in bankruptcy court.
Debt is not an issue. FCX can pay off its debt any time it wants. FCX is better off further capitalizing on its copper assets than selling it.
I wouldn't call this outperformance. GG has been dropping for a week now and looks to head lower today.
I wouldn't say FCX is solid as a rock considering their drop in earnings but FCX can hold their own. I do like FCX's diversification which proved its worth when gold was sinking heavily.
Have a thumbs up buddy. If all miners can maintain their current trend, it shouldn't be hard for GG to reach their high. Its getting closer and closer.
FCX was gutted by the agreement so its natural the market will react as such. In the bigger picture this doesn't mean much though. FCX can easily recover from this event.
Also take a look at the CNBC documentary on GLD that was set up by State Street to prove the existence of GLD's gold. Bob Pisani held up a gold bar, ZJ6752, that was actually owned by ETF securities. Very comical. GLD is being managed by your typical banker crooks.
How can Germany punish Putin when Russia is self sufficient and owns vast oil fields? As for Germany rearming against Russia.... that is more comical than anything else.
"If a nation breaks into Exxon-Mobil (XOM) or BP (BP) and figures out where they've discovered vast oil or natural gas reserves, it could beat them to the punch and start drilling first." This is not true and will depend heavily on who owns the oil fields.
The rally was unsustainable according to sentiment. The geopolitical factors pushing up gold is weakening in addition to a rising economy.
Which means you have to get in contact with any one of the authorized participants to redeem shares. It seems you're the only one around here that never called up 866-320-4053 asking about the redemption process. They have repeatedly said it is possible if you own 100,000 shares.
Goldman says a lot of things contrary to what they are actually doing. It is true in this case as they have been buying up gold.