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Frontrunning: May 24
- Most European markets, ex UK, closed for Whit Monday
- LIBOR/OIS: Dollar spread widens again (Market News)
- Gold rising as euro weakens spurs more speculation (Bloomberg)
- "Seriously, GLD is not a scam. But PHYS might be" (Index Universe) - Seriously, if anyone can explain to us what this article is complaining about we would be grateful (h/t Robert)
- Defaults on apartment-building loans set record for US banks (Bloomberg)
- Kunstler: Something Happened: (Clusterfuck Nation)
- European fear crisis threatens liberal benefits (NYT)
- CajaSur seizure marks change for Spain's ailing banks (Bloomberg)
- China's Hu repeats pledge to reform Yuan, in other words nothing will ever happen (WSJ)
- How Israel offered to sell South Africa nuclear weapons in 1975 (Guardian)
- Roubini's up close and personal on Bill Maher (HBO)
- British Airways crews begin strike after talks fail (Bloomberg)
- China says US claims on copyright piracy "groundless" (Reuters)
- And your daily dose of fun via Clarke and Dawes:
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Can you get actual Gold from GLD ,when you cash out?
If you can then their legit, if not, their a scam.
Simple as it get's to be.If they have a disclaimer, saying they CAN reimburse you in cash, not metals.Then their a scam in this regard.
People need to KNOW if the Phys, and GLD WILL reimburse in PHYSICAL if the owners wish.
If they have the option, of NOT doing so, it's a scam, and they DO not have the metals to back up the investments.
Simple as it gets to be.
How far do you think the spot price can drop between when you request your redemption from PHYS and when you receive your ~$480k minimum physical?
Occam's razor does not apply in finance.
Either they're both scams...or they're both just investments.
You want gold? Buy physical yourself! (while you can still find it)
I don't believe you understand the concept of a scam that is getting promised something that ain't so.
GLD doesn't advertise conversion as one of its features. If you hold a lot of GLD, you should be able to convert it because on a large enough scale banks can make a fee from providing you that service.
Personally, I'm suspicious of any gold fund, thus I don't touch it, but rather trade gold miners as there is something tangible. Putting my disagreement on blindly trusting 'independent auditors' with the author aside, I have to say that she does make a good point that you have to weight the convenience of having an exchange traded security that forces you to buy something ABOVE NAV and then paying extra for redemption vs buying gold in spot outright. She says that most likely that closed-end mutual fund is not a good deal EVEN if it promises physical delivery. In fact, I would say that the reason that fund was setup is to rip-off (or arb the stupidity) of people who cannot understand that tradeoff. She also points out that the fund doesn't track the price of gold well - so clearly someone is getting ripped off.
I suspect that's too much for average ZH to understand, and people will be angry.
they are??
I would double check that if I were you
http://www.euronext.com/editorial/documentation/wide/documents-1690-EN.html
where are the damn peasants? we worked the media all weekend about a rebound.....we pushed the futures all night...
where the hell are they??? its time for the hand off. Seriously.
I guess those rabbit-ears don't work as well in a bunker.
um....we need the peasants to show up en masse, PDQ. this is NOT the way things are supposed to go. don't these people know the rules? the computers are NOT supposed to get stuck with the stock in the end, the peasantry is....
and we are supposed to be able to short the hell out of their "long holdings" all the way into the ground.
they buy at the top and hold.
we sell to them, and short to the bottom.
that's the way it is supposed to be.
so CNBC better damn well ratchet up the "buying opportunity" volume PDQ
and who told the peasantry to buy gold/silver stocks? what the hell is going on???????????????????????????
we have option expiry tomorrow in gold and have every intention of getting gold down into the 1150s.......what is going on?
how DARE they go into gold stocks? how DARE they?
If there is a scam in PHYS I think it is more likely it relates to the tax treatment rather than whether they actually have allocated, audited physical bars. Whatever tax loophole they figured out to escape the "collectible" capital gains tax will be closed before too long (government does not want to make owning gold easy). Once the loophole is closed that will immediately give it a 15% haircut because the tax advantage seems to be priced into the stock right now.
PHYS is just tracking the physical market if it has a 15% premium. Try buying real gold out there, Lady. There are storage fees because its not in your house. Physical gold market is an underground market that doesn't track the CRIMEX price. Try getting physical delivery from futures. It takes like 3 months, armored cars, major fees etc. I have no idea why a 15% premium on the Sprott fund is a bug deal. Plus it appreciates as a closed end fund because the underlying asset is worth more. Like owning a share in the Green Bay packers. Its not there to appreciate much-its there because its owned,OWNED,OWNED by you.
"Seriously, GLD is not a scam. But PHYS might be" (Index Universe) - Seriously, if anyone can explain to us what this article is complaining about we would be grateful (h/t Robert)
This is a great article if you feel the need to deeply immerse yourself in WTF.