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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (56533)	10/15/2009 11:56:01 PM
From: carranza2	Read Replies (1) \| Respond to of 218005

I suppose it is possible for a custodian to wink/nod at shenanigans, get paid off, etc. Don't own paper gold in GLD. But the IAU prospectus describes the risk in stark, clear language - and I thought I had looked into the issue deeply. I guess not. The procedures agreed to with the custodian contemplate that the custodian must undertake certain tasks in connection with the inspection of gold delivered by Authorized Participants in exchange for Baskets of iShares. The Custodian’s inspection includes review of the corresponding bar list to ensure that it accurately describes the weight, fineness, refiner marks and bar numbers appearing on the gold bars, but does not include any chemical or other tests designed to verify that the gold received does, in fact, meet the purity requirements referred to in the Trust Agreement. Accordingly, such inspection procedures may not prevent the deposit of gold that fails to meet these purity standards. Each person that deposits gold in the trust is liable to the trust if that gold does not meet the requirements of the Trust Agreement. To the extent that Baskets of iShares are issued in exchange for gold of inferior quality and the trust is not able to recover damages from the person that deposited that gold, the total value of the assets of the trust will be adversely affected and, with it, the NAV. In these circumstances, it is reasonable to expect that the value at which the iShares trade on NYSE Arca will also be adversely affected.. In other words, we are wide open to scams because we don't test and we rely exclusively on a bar list. But I think everything must be OK, vbg, inasmuch as NYMEX seems to have since 2005 accepted ETF shares in exchange for settlement of physical delivery: cmegroup.com

To: TobagoJack who wrote (56533)	10/16/2009 2:37:15 AM
From: elmatador	Read Replies (1) \| Respond to of 218005

Imports are slowing dramatically, refiners are closing, and we are currently at $78-80 crude. Unwinding is well, unwinding. Gas Guzzlers invade Angola! see this site. viaturas.us No wonder refineries are closing! Streets packed! the whole city looks like a parking lot filled with Gargantuan-sized cars.