Post by jeffolie on Jan 30, 2011 11:45:54 GMT -6
Draining GLD...ending up with paper only
Is there really physical gold in GLD on the magnitude and order indicated by the market prices or is there a scam?
Is GLD more of a paper gold ETF or a holder of the physical?
Proof is hard to find.
Draining of GLD by shareholders hints that at least some of the gold is physical.
The below piece raise more questions for me than it answers.
I have picked just a little of the below piece to present. Read the whole thing...it will be worth your time.
I continue to advocate holding physical possession of metals.
============================
Who is Draining GLD?
"....Did you even know that you could take physical delivery from GLD? Apparently many didn't....Someone is draining GLD of its gold. Someone is taking in millions of ounces and tonnes of physical gold at off-market prices while the paper bug cheerleaders call it "dumping" or "offloading" the gold. Again, one man's "outflow" is another man's pickup truck (or dump truck as the case may be) backed right up to the loading dock at the GLD depository.
"...And for those of you GLD fans that think you will simply hold onto your shares until the bitter end, I have a warning for you. These Giants don't need to over-bid your shares away from you. They can always buy them at the price of paper gold trading in London and New York. And there will come a point when you are watching the premium on physical coins jump from 5% over GLD to 50% on its way to 500% over the paper gold price. How long are you going to stubbornly hold onto your precious paper before you finally relinquish it to that last Giant's delivery "basket?" Remember, unless you've got $13 million, you've only got paper...."
Sincerely,
FOFOA
fofoa.blogspot.com/2011/01/who-is-draining-gld.html
Is there really physical gold in GLD on the magnitude and order indicated by the market prices or is there a scam?
Is GLD more of a paper gold ETF or a holder of the physical?
Proof is hard to find.
Draining of GLD by shareholders hints that at least some of the gold is physical.
The below piece raise more questions for me than it answers.
I have picked just a little of the below piece to present. Read the whole thing...it will be worth your time.
I continue to advocate holding physical possession of metals.
============================
Who is Draining GLD?
"....Did you even know that you could take physical delivery from GLD? Apparently many didn't....Someone is draining GLD of its gold. Someone is taking in millions of ounces and tonnes of physical gold at off-market prices while the paper bug cheerleaders call it "dumping" or "offloading" the gold. Again, one man's "outflow" is another man's pickup truck (or dump truck as the case may be) backed right up to the loading dock at the GLD depository.
"...And for those of you GLD fans that think you will simply hold onto your shares until the bitter end, I have a warning for you. These Giants don't need to over-bid your shares away from you. They can always buy them at the price of paper gold trading in London and New York. And there will come a point when you are watching the premium on physical coins jump from 5% over GLD to 50% on its way to 500% over the paper gold price. How long are you going to stubbornly hold onto your precious paper before you finally relinquish it to that last Giant's delivery "basket?" Remember, unless you've got $13 million, you've only got paper...."
Sincerely,
FOFOA
fofoa.blogspot.com/2011/01/who-is-draining-gld.html