Are the gold and silver ETFs safe?

[sam9657]

I heard there is a rumor that these ETFs will default, but aren't they supposed to be backed by physical gold. Also if these ETFs default will you get any of your initial investment back?

 

[future]

No just buy physical bullion !

 

[Dr.3D]

One if the hand is worth two in the bush.
If you can't hold it in your hands, then you may not have any at all.

 

[Bruno]

As said many times before, "If you don't hold it, you don't own it"

 

[eric_cartman]

no... etf's and futures contracts definitely not safe.

buying physical is the best.

or buy from the perth mint using europac

or goldmoney.com is good too.

 

[gonegolfin]

no... etf's and futures contracts definitely not safe.

buying physical is the best.

or buy from the perth mint using europac

or goldmoney.com is good too.

I do not trust the Perth Mint pooled storage programs. If you go allocated, you are fine.

I really like GoldMoney.

Brian

 

[Brian4Liberty]

I heard there is a rumor that these ETFs will default, but aren't they supposed to be backed by physical gold. Also if these ETFs default will you get any of your initial investment back?

Yep, the etfs are supposed to be some of the largest holders of bullion. They won't "default" like comex futures might.

Your risks:

Fraud (they really aren't holding gold)
Theft (their gold could be stolen)
Confiscation (the government might raid them)

 

[fj45lvr]

Does anyone know if there is some numbers posted as to know the amount of ETF vs Quantity of physical??

I have heard that this market is the equivalent of "fractional reserves" ...in the event of a "run on the 'bank' " many people are going to have ZERO, nothing but a slip of paper or electronic entry that is WORTHLESS. Up until the "wailing and gnashing of teeth" people might think its "fine and dandy" when it is only a CON-GAME of crooks.

 

[Brian4Liberty]

Does anyone know if there is some numbers posted as to know the amount of ETF vs Quantity of physical??

I have heard that this market is the equivalent of "fractional reserves" ...in the event of a "run on the 'bank' " many people are going to have ZERO, nothing but a slip of paper or electronic entry that is WORTHLESS. Up until the "wailing and gnashing of teeth" people might think its "fine and dandy" when it is only a CON-GAME of crooks.

That is the risk of fraud. Can't remember who it was (Lehman?) that claimed to be holding gold for investors, and was found to be lying.

 

[ItsTime]

Hold it in your hand

 

[Dr.3D]

That is the risk of fraud. Can't remember who it was (Lehman?) that claimed to be holding gold for investors, and was found to be lying.

I believe you are referring to the Morgan Stanley fraud.

The suit, filed in August 2005, alleged that Morgan Stanley told clients it was selling them precious metals that they would own in full and that the company would store.

But Morgan Stanley either made no investment specifically on behalf of those clients, or it made entirely different investments of lesser value and security, according to the complaint.
Full article here.

 

[Brian4Liberty]

I believe you are referring to the Morgan Stanley fraud.

Thanks, that's it. Couldn't google it for some reason. Didn't have the right keywords. There are some interesting things to be found when googling "gold fraud"...

 

[freelance]

I heard there is a rumor that these ETFs will default, but aren't they supposed to be backed by physical gold. Also if these ETFs default will you get any of your initial investment back?

The operative word is "supposed." No one has actually seen this gold, have they?

 

[Brian4Liberty]

The operative word is "supposed." No one has actually seen this gold, have they?

GLD is audited. The storage facilities and/or auditors would have to be in on a scam. After Enron, auditors are a little nervous about being involved in fraud. For some strange reason, auditors are held more accountable than any other white-collar criminal. (of course there is still very little risk of them being prosecuted)

 

[freelance]

GLD is audited. The storage facilities and/or auditors would have to be in on a scam. After Enron, auditors are a little nervous about being involved in fraud. For some strange reason, auditors are held more accountable than any other white-collar criminal. (of course there is still very little risk of them being prosecuted)

Anyone seen an actual audit report? Trust, but verify.