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To: Taikun who wrote (18732)	12/9/2004 11:51:07 PM
From: NOW	Respond to of 108610

good post

To: Taikun who wrote (18732)	12/10/2004 12:25:51 AM
From: The Vet	Read Replies (2) \| Respond to of 108610

Taikun, yes I did read the prospectus. The custodians and the sub-custodians are all members of the LBMA. The LBMA currently trades over 14 million ounces of physical gold every trading day and has been doing so with the system of custodians and sub-custodians maintaining custody of the actual gold bars. Only a small portion of the traded gold is actually physically moved (after all 14 million ounces is well over 400 tons of metal). Ownership changes are by book entry of the allocated gold moving from one ownership entry to another. For all his present talk, just read James Turk views on the LBMA in an earlier interview about Goldmoney. Seems that the LBMA is good enough for Goldmoney, but a terrible risk for GLD! Turk: We do even better than that. All of the gold within GoldMoney meets the standards of the London Bullion Market Association. The LBMA has a rigorous control procedure. So in addition to conducting periodic assay checks of all bullion within the LBMA chain of integrity, LBMA rules require its members to make good on any bar that does not meet the weight or purity measures stamped on to the bar. It is widely accepted within the gold industry that the LBMA is the premier standard for physical gold worldwide. TGE: Along those same lines, what are the terms of the London Bullion Market Association's chain of integrity? If one of the GoldMoney bars were found to be counterfeit, who is legally and fiscally responsible for the loss? Turk: I don't think there has ever been a counterfeit bar in the history of the LBMA. But if an underweight bar were detected, LBMA rules require the LBMA member who refined the bar to stand behind it and make good on it, and we are talking here about the largest gold refiners in the world. But if for any reason they didn't perform, we would make good on the bar. But given the LBMA's history and high standards, you have to keep in mind the extremely small possibility of there being an underweight bar, which highlights an important reason we use LBMA bars – they offer real consumer protection. Consumers are at far greater risk with non-LBMA bars, which makes periodic assaying of non-LBMA not only a good policy, but essential. But what happens if one of those non-LBMA bars is underweight or counterfeit? I don't know whether the other operators have policy to make good on those bars, or whether their users are at risk. goldmoney.com Your statement #3 is simply wrong. All gold held in trust for GLD is allocated gold it cannot be used for other purposes. As far as your statement #4, well it seems James Turk answered that already (see above).