globalHOBBIT

What's in Store for 2009? Gold, Metals and Other Markets

"Pick China as an example; frankly would China worry about not getting more dollars when it already has $1.5 trillion? "

While the $1.5 trillion is correct, figures released by The Chinese government place the dollar reserve total at around $489 billion. Your fine article infers that the entire $1.5 trillion is all dollar holdings and that is misleading and inaccurate.

The Problem with GLD and SLV ETFs

I find your analysis of these precious metal ETFs right on the mark. I have read the prospectuses of both these funds and find the disclaimers frightening. Why are independent spot inventory inspections limited, in the legalese of the prospectus, the managers don't have to show anyone they have what they say they have. Why is it that only a court order can compel the fund managers to open the vault(s) to verify the quantity and quality of these funds stated holdings? Anyone who argues with the authors findings probably has NOT read the prospectus fully for these funds. These funds do have a purpose as some of the other comments have stated and they are valid hedges and trading vehicles. However most people who buy these two funds in particular believe they are getting 100% 99.9999% fine gold or silver and that simply isn't the case. My point is read the prospectus fully before making the investment so you understand exactly what you're getting and what you're not getting and even what you might not get. Gold's periodic symbol is AU and when you buy GLD, gold's exchange traded ticker symbol your not getting identical twins, for that matter you may not even be getting fraternal twins but rather second or third cousins twice removed.