They make Madoff looks like a boy scout!
There are so many smart people providing so many smart explanations to justify the thieves.
The only explanation missing is the one calling the whole thing for what it really is: a shameful robbery by financial goodafellas, selling 500 tons of phantom gold on the stop-bids and watching the blood-bath of margin-called longs the next day.
See the link above for the details.
Gold and silver are the only markets in the world where this is possible: -20/-30% in a few trading HOURS, with a few financial entities allowed to sell naked a quarter of the yearly world production in a single shot.
Then you have to listen to all these smart people…..
I’m sure they will also explain us once again why do we need the CFTC (LOL, they are such a joke!). Of course, they “got to look at it” and will say after a few months that everything was fine. Because they are there to serve and protect, just not you.
This robbery is not the first and will not be the last!
If you are there (COMEX) on margin, you are getting exactly what you deserve.
Buy the physical, but forget the current paper price: you’ll not get it buying hard metal instead of paper (but PHYS is discounted now).
And forget also all the rest, including these smart, oh so smart!, people.
HOUSE OF MAEDHROS 
April 16, 2013 at 12:31 pm |
Sorry, not sure I understood your last statement. Would you recommend buying PHYS, then? If not what other Funds buying physical would you recommend? Interested in buying physical but cannot and do not want to store it in a bank myself.
April 16, 2013 at 1:36 pm |
The Trust’s physical gold is fully allocated and stored at a secure LBMA-approved third party storage location in Canada. The physical bullion is subject to a physical count periodically on a spot inspection basis and subject to audit procedures by the Trusts’ external auditors on at least an annual basis.
Unlike most traditional exchange-traded precious metals funds, the Trust hold its bullion assets in custody at a Federal Crown Corporation of the Government of Canada. There is no levered financial institution between the unitholders and the Trusts’ physical bullion and no risk of financial loss in the event of a bankruptcy or nationalization of the financial institution.
The Trust exclusively invest in physical bullion. At any given time, the Manager intends to hold 97% of the total net assets of the Trusts in physical bullion in London Good Delivery bar form. The Trust do not invest in precious metals certificates or other financial instruments that represent gold or that may be exchanged for gold.
The Trust’s bullion holdings are fully allocated. Unlike other bullion funds, the Trusts do not have an unallocated account that is used to facilitate transfers of bullion between financial institutions that act as authorized participants. Without exception, all of the bullion owned by the Trusts is held in the Trusts’ allocated accounts in physical form.
In short, buying PHYS you are buying real gold pro quota, around 8.2 ounces every 1,000 shares, at spot price in this moment (usually it trades at premium).