Trace Mayer

The Problem with GLD and SLV ETFs

Hendi_alex, you are broadening the issue outside the scope as asserted in the article. The risks you raise do exist. Although the article does not contain the reasoning because of space it is implied and important to draw the distinction between tangential risks (exchange rate risk, performance risk, etc.) which assets are subject to because of relative valuation, pricing, property law, etc. and inherent risks (counter-party risk, credit risk, payment risk, etc.) which gold is not subject to because of its attributes.

Top Gun, I doubt you understand the definition of counter-party risk and consequently do not distinguish it from performance risk. The key distinguishing element is the financial ability of the counter-party to perform. The other issues are addressed in hendi_alex's answer.