23 February 2013

Gold and silver ETF’s support price suppression


We have always advised against buying silver and/or gold ETF’s. An ETF is an exchange traded fund that you trade through a brokerage account. These ETF’s buy and hold physical gold and silver – so the says the prospect. But the ETF’s do not allow you to take physical possession of your metal.

The following GATA article leads to a detailed presentation of Hinde Capital. It explains how ETF’s work – which is well explained. Obviously they like to sell their product and that is okay, however we like to remember that the direct and allocated possession of gold and silver is the only way to go.
http://www.gata.org/node/8913

This article, published on 26th  October last year addresses accurately the conflict between the largest silver short seller JP Morgan being the custodian of the biggest silver ETF iShares.



Watch here a short CNBC report on how it is impossible to have your silver being held in an ETF delivered:
http://www.youtube.com/watch?v=pt1wNi4SZ68&feature=related


And last but not least a link to Max Keiser where he states that every $1 you own in physical silver puts a strain of $100 onto JP Morgans balance sheet:
http://maxkeiser.com/2012/05/19/thank-you-2/

Conclusion: The IOU (I owe you) situation in the ETF is well known but the story is starting to unravel bit by bit. It has been reported that the ETF GLD has been counting gold bars as part of their inventory that they have not had in possession.
(Find more information here: http://video.cnbc.com/gallery/?video=3000043030)

And of course as a gold and silver investor the last thing you want is your investment dollars lower than they otherwise would be.

Own physical gold and silver that’s the safest way.
 

Author: celticgold.eu

Older How to Store Gold and Silver - Options Newer Article Discussion Truth about gold