GLD ETF full of fake gold?

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Submitted by Adebisi on November 23, 2009 - 9:53pm

Interesting story that if true means physical gold is way undervalued:

http://beforeitsnews.com/story/000000000...

The gist of the article is that there are between 1.3 million and 1.5 million in fake 400 OZ gold bars out there. The 'fake' part of the bars is actually tungsten. It's unclear from the article whether the GLD ETF tests the gold bars that they take delivery of, but they have a legal disclaimer that basically says there's no guarantee that the gold in the trust is actually real.

It will be interesting to see if this story has legs.

Submitted by peterb on November 26, 2009 - 11:55am.

Watch the Jr miners. As the big miners get hungry for new reserves, they'll pay big premiums for the little guys. There could be some very nice Positive-black-swans in this group.

Submitted by Nor-LA-SD-guy on November 26, 2009 - 1:36pm.

scaredycat wrote:
there is internet chat on the subject of yield for amateur gold miners. even in known gold places, the pickings are slim. you cannot earn a living, even at 3k an oz, but one occasionally gets lucky and finds a nugget. it will always be a hobby for the guy with the pan.

I guess it depends who you talk to, some say you can average about an oz or so a week if you are willing to learn and work diligently at it just using a pan and a metal detector screw driver and a small shovel,.

But at the same time I can't say I have ever tried it and it does sound like a lot of very hard work.

Submitted by Zeitgeist on July 3, 2010 - 9:05pm.

Fraud and market-manipulation ... takes place every day in the precious metals market.

http://www.bullionbullscanada.com/index....

Submitted by paramount on July 3, 2010 - 11:44pm.

Nor-LA-SD-guy wrote:
scaredycat wrote:
there is internet chat on the subject of yield for amateur gold miners. even in known gold places, the pickings are slim. you cannot earn a living, even at 3k an oz, but one occasionally gets lucky and finds a nugget. it will always be a hobby for the guy with the pan.

I guess it depends who you talk to, some say you can average about an oz or so a week if you are willing to learn and work diligently at it just using a pan and a metal detector screw driver and a small shovel,.

But at the same time I can't say I have ever tried it and it does sound like a lot of very hard work.

Sounds like history really does repeat...

Just remember, be the one selling the tools.

Submitted by sobmaz on July 4, 2010 - 3:46pm.

http://www.constitution.org/mon/greenspa...

Alan Greenspans thoughts on Gold back when he could say what he really thought.

Submitted by sobmaz on July 4, 2010 - 3:56pm.

"Gold pays no interest"

That is the stupidest thing I have ever heard. Gold does not need to pay interest, it retains its value over time.

A dollar in 1908 will buy you what 50.00 today will buy you. Dollars pay interest only to make up for the erosion of its value.

An ounce of gold in 1908 will buy about the same amount of goods of services as an ounce of Gold today.

GOld is a STORE of value, not an investment. An investment would be my first choice, not Gold. But.....Gold would be my first choice as a STORE OF VALUE if my second choice was a u.s. dollar.

Think about it....would you want to STORE your money in money that can be printed by the billions daily or in an ounce of Gold that takes a lot of resources to create?

Being that the u.s. has promised mountains of dollars to everyone and is already in debt, my first choice is my wealth in an investment that will weather the economic meltdown. On the other hand, any uninvested cash I have I would much rather store in gold than in dollars.

Submitted by SK in CV on July 4, 2010 - 4:14pm.

sobmaz wrote:

"Gold pays no interest"

That is the stupidest thing I have ever heard. Gold does not need to pay interest, it retains its value over time.

A dollar in 1908 will buy you what 50.00 today will buy you. Dollars pay interest only to make up for the erosion of its value.

I don't follow gold much. But that bolded sentence is much more absurd than the one you identified as stupid.

Submitted by patb on July 4, 2010 - 6:05pm.

peterb wrote:
Gold is tangible and has a long history as money and a store of value becuase it is very durable and not easy to find. Most commodities are consumables, gold isnt really consumed. Gold is an insurance policy against fiat unstability, fraud and govt's bad behavior.
Central banks and the IMF hold quite a bit of it. Why? Granted their not the best indictor of intellegence, but they do have a lot of power in this world. And they tend to control the quantity of "money" in the world.

until you find gold.

the spanish found aztec gold and went bankrupt...

Submitted by Colombo on July 4, 2010 - 11:17pm.

Spain made the mistake of confusing bullion with wealth.

Holland on the other hand, realized that trade and manufacturing were the twin routes to wealth. And staying out of war was the way to keep it.

So much so that they were able to buy their freedom from Spain and we all know the trajectory since.

Submitted by stockstradr on July 5, 2010 - 12:38am.

Only insomnia has driven me to post to this thread, which is filled with even more nonsense posts than the usual Pigg thread.

Gold ETF's filled with "fake" gold?

It is practically a moot point, because if you read the prospectus cover-to-cover, you'll identify so many other risks that the gold ETF's might as well hold fake gold.

http://www.spdrgoldshares.com/sites/us/p...

Because of these risks, when I take a position long gold, if I cannot buy bullion (such as when trading in a 401K or ROTH IRA) then I only buy the Central Gold Trust (GTU).

http://www.gold-trust.com/

I'm presently DOUBLE-SHORT gold, having first established that 10%-of-portfolio position two weeks ago. Yes, so far the gold market is definitely moving my direction.

I am pleased that so many people on this thread think gold is a good buy at this price. That tells me I'm on the right side (short side) of the gold market!

When gold falls to about $700 (likely within 24 months), I'll dump that short position and, as Hugh Hendry says (paraphrasing) "I'm gonna then back my truck up to the refinery and load my portfolio chock full of gold, then hold it for a good 10+ years, long enough for the dollar to collapse and send gold soaring above $6000/ounce!" (And that might just happen A LOT sooner than 10 years)

http://en.wikipedia.org/wiki/Hugh_Hendry

Submitted by cyphire on July 5, 2010 - 10:35am.

AHHHHH I'm scared now!!!

I was also wondering about how much gold GLD actually carries, and when I read that they were "buying gold" to bolster their reserves, that made me nervous. The rest of these comments made me real nervous! I put 5% of my portfolio into GLD, and it went up and back down to where I bought it at, so I think I will dump it. I bought it as a hedge against a MAJOR panic / market meltdown (along with an even larger position in the double shorts on DOW and Russell), so i may move the gold money into the double shorts....

Should there be a TRUE crisis, who knows, the GLD might be worth a fraction of its value if they don't actually hold an equivalent amount of the stuff!

Submitted by cyphire on July 5, 2010 - 10:35am.

AHHHHH I'm scared now!!!

I was also wondering about how much gold GLD actually carries, and when I read that they were "buying gold" to bolster their reserves, that made me nervous. The rest of these comments made me real nervous! I put 5% of my portfolio into GLD, and it went up and back down to where I bought it at, so I think I will dump it. I bought it as a hedge against a MAJOR panic / market meltdown (along with an even larger position in the double shorts on DOW and Russell), so i may move the gold money into the double shorts....

Should there be a TRUE crisis, who knows, the GLD might be worth a fraction of its value if they don't actually hold an equivalent amount of the stuff!

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