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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (17589)	2/13/2009 11:18:30 AM
From: aknahow	Respond to of 29622

Nice post. In addition here is a statistic that should demonstrate that 40 tons of gold are certainly available. "Gold ounces transferred dropped from a daily average of 24.0 to 18.3 million, a fall of 23.6%." This is from the London Metals exchange. Also, the concept of allowing shareholders to redeem physical gold would destroy the low margin and ability to track gold. GLD was never designed to provide holders the ability to some sort of access to the gold represented by shares. This issue is raised to scare people. Monty today raises the taxation issue. but if followed to its' logical conclusion is that one should not buy coins or bullion as they are collectables also, but only mining stocks.

To: Tommaso who wrote (17589)	2/14/2009 9:04:37 PM
From: carranza2	Respond to of 29622

I have gone over the IAU prospectus with a fine tooth comb. Unless the administrator - Bank of Nova Scotia - is in cahoots with a seller to accept gold painted lead bars in place of bullion, there is little to worry about. I suspect the same is true of GLD. IAU is prohibited from participating in the gold futures market. I suspect that GLD has a similar prohibition. It seems silly to buy CEF, or any other similar fund, at a substantial premium over NAV [currently about 10%] when holding IAU seems to entail essentially the same level or risk.