Gold

[STRAT]

there are doubts about how much gold some funds have in their vaults.

.

I suspect the truth there if it got out would be astounding. I will wager there are many such, shall we say " less than full " vaults about the world

[JBmurc]

Let me see if I've got this right JB.
There is an assertion that more gold ETF's have been sold than all the gold on earth.
If that is the case or even rumoured to be the case this would create a stampede as the punters rushed to sell their ETF's and get out.
In the mean time the ETF's would need to sell their store of gold, hundreds, maybe thousands of tonnes, that probably no one would want. Correct?

That's all it would need to send gold back to where it was a few years back.

-well if they haven't got it how will they sell it ?
-Probably no one will want it ? well if that was the case why has JP morgan got and has had for a long time Moz's Shorts of GOLD yet the price has hit new record high in the pound an euro of late esp. as It's well know theirs round a 100:1 leverage of paper gold/silver to the real thing with no limits on shorts but limits on longs It's well known to be a larger amount of shorts to longs

-the real stampede will be into real gold an silver bullion an out of paper contracts of so-called owership

So yes in the short term we could well see paper gold fall but real gold increase....time will tell

GOLD price -$1166usd Silver-$18.53





Gold ETFs - Introduction#
Gold backed Exchange Traded Funds (ETFs) are securities designed accurately to track the gold price.

BullionVault simply allows private individuals to buy gold bullion and own it directly as personal property - storing it in high security accredited vaults in London, Zurich or New York.

Both have been very successful at increasing gold bullion investment.

[Huang Chung]

Seems to me that, if the stories about not enough gold to back the bank's IOU's is correct, then PHYSICAL gold would skyrocked at people would want to take possession of what gold is out there.

[JBmurc]

Seems to me that, if the stories about not enough gold to back the bank's IOU's is correct, then PHYSICAL gold would skyrocked at people would want to take possession of what gold is out there.

Exactly----Add in the fact most of the worlds easy to mine large discoverys are in the past going forward it's going be a dog eat dog world for the best discoverys(Is why the likes of NCM is trying to takeover LGL rather than try an find a 40milloz It's far cheaper)

[Skol]

Any hint of a major scandal involving ETF's and the amount of gold they own will make gold as about as popular as the plague.

[JBmurc]

Any hint of a major scandal involving ETF's and the amount of gold they own will make gold as about as popular as the plague.

It will make ETF's as popular as the plague-Real Physical precious metals will soar in value

[tricha]

Any hint of a major scandal involving ETF's and the amount of gold they own will make gold as about as popular as the plague.

Hey Skol, wake up and stop your constant stirring, oil will hit $25 a barrel, it would have had the world entered Depression, which it still is sitting on the edge of.

Gold could be King, money is becoming not worth the paper it is printed on, a wise man would put 10% of his assets in gold for insurance, I'm not that wise.


No one knows what gold will do, all

[Huang Chung]

Any hint of a major scandal involving ETF's and the amount of gold they own will make gold as about as popular as the plague.

I'd agree with you if you were right, Skol, but you aren't, so I won't.

It would make EFTs as popular as the plague, but, unless you are going to paint tungsten bars with gold paint, physical gold will remain untarnished (no pun intended), and in fact, MORE desirable as it cannot be manipulated.

[hal]

Any hint of a major scandal involving ETF's and the amount of gold they own will make gold as about as popular as the plague.

I think it will make the suppliers of the ETF as popular as the plague. Could be a bit different to what you are saying. I also think you might mean 'paper gold' not physical

[Skol]

Here's a couple paragraphs from Yahoo Finance on the top investor scams:

Leveraged Exchange-Traded Funds (ETFs)

Leveraged exchange-traded funds (ETFs) are a relatively new financial product, which is why investors may not be aware of the risks they carry. The funds, which trade throughout the day like a stock, use exotic financial instruments, including options, other derivatives and promise the potential to generate better returns than the market return. Given their volatility, these funds typically are not suitable for most retail investors.

Gold Bullion and Currency Scams
With the high price of gold, investors should beware of gold bullion scams in which the seller offers to retain "purchased" gold in a "secure vault" and promises to sell the gold for the investor as it gains in value. In many instances the gold does not exist.




Owning physical gold is for the amateurs. I want to see what happens when the gold price crashes and all these losers queue up outside their local bullion shop, which will, probably, coincidentally, be closed for the day. LOL