SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Ride the Tiger with CD
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Claude Cormier who wrote (21101)11/21/2004 7:13:17 PM
From: Taikun  Read Replies (1) of 313018
 
Claude,

I agree. I read the prospectus and saw a number of red flags.

I respect James Turk based on what I have read about him. James Turk confirmed my suspicions about this ETF.

A bulletproof ETF would have insured gold held directly by the fund in auditable secure premises. There should be zero need for shorting, or the use of any options.

GLD is uninsured gold held by third parties and their counterparties at sites where the manager, Streettracks has no right of inspection. The ETF will use other instruments such as options, further adding to the risk.

This raises the question, is the 1.8m ounces of gold they hold physical or paper?

streettracksgoldshares.com

Until a third party has verified the physical gold and ensured it is unencumbered, I will have my doubts. I wil not touch this instrument and none of the investors I know are interested in it either.

This paper gold ETF is not a substitute for physical gold. It is a risky asset with all the downside of other paper assets in a financial crisis. Reading the prospectus, one finds our that the financial authorities have been hard at work to create this false impression of a secure asset. Perhaps, in a financial crisis, the failure of this instrument will drive investors away from gold, and that could be their intention.

David
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News