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ChrisR13
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Gold Price Gives Back $10 Pop as Italy & Austria Votes Loom, Korean Won Rallies - Bullion Vault -

"With gold prices gaining $10 from $1183 yesterday only to give them back today, the giant SPDR Gold Trust (NYSEArca:GLD) ended Monday with the amount of gold bullion backing its shares unchanged from Friday, stemming 11 sessions of outflows from the major gold ETF investment vehicle, the longest stretch since gold's spring 2013 price crash."

How reliable are GLD's holding reports? GLD does not give retail investors the right to redeem for any of its mystery physical gold holdings. This fact alone ensures the GLD shares to be nothing more than paper at the end of the day. GLD also has a glaring audit loophole in their prospectus that states they have no right to audit subcustodial gold holdings. To this day, I have not heard of a single good reason for the existence of this backdoor to the fund. Some other red flags I've stumbled upon, verified and welcome everyone else to verify for themselves:

"Did anyone try calling the GLD hotline at 866▪320▪4053 in search of numerical details on GLD's insurance? The prospectus vaguely states "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." When I asked about how much of the gold was insured, the representative proceeded to act as if he didn't know and said they were just the "marketing agent" for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors."

"I remember there was a highly publicized visit by CNBC's Bob Pisani to GLD's gold vault. This visit was organized by GLD's management to prove the existence of GLD's gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this "GLD" bar was actually owned by ETF Securities."

Commented 2703 days ago

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Beginning of the headline :GOLD PRICES fell back to last Friday's 43-week closing low against the Dollar and most other major currencies in London trade Tuesday, dropping over 1% as European stock markets rose but government bond prices fell, nudging interest rates higher. Gold prices in Shanghai had edged lower overnight as the Yuan strengthened from 8.5-year lows on the FX market. But that clipped only $1 p... Read More

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