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Sophisse
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Tom said: "As for GLD shares held by investors being redeemable into physical gold - they aren't."
Aug 25 18:34 pm
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All Comments by Sophisse »The Strange Case of Dr. GLD & Mr. Bullion [View article]
Tom - you are incorrect. Read the prospectus, specifically "creation and redemption" on page 3, here: www.spdrgoldshares.com...
Only "authorized participants" can do this, not the ordinary joe who buys some GLD with his schwab account. Authorized participants are professional investors like banks, brokers, hedge funds, etc. By buying GLD, you are trusting those participants to arbititrage any difference between GLD and actual gold, by creating or redeeming shares.
If you can't trust banks, brokers, and hedge funds to want to make money for themselves, then yes you better own your own gold - and keep it under your mattress, because you never know when your local bank - or the government - or the illuminati - will steal the contents of your safe deposit box.