Episode 79: Andy Duncan interviews Alasdair Macleod, Head of Research at GoldMoney. They talk about possible security issues with the big gold and silver ETFs GLD and SLV due to insufficient regulation, and also discuss western central banks’ gold leasing activities.
In his recent article published on the GATA website, Alasdair Macleod writes about how custody arrangements for the GLD and SLV exchange traded funds may be compromising shareholder security because they exist outside the regulatory regime of the UK’s Financial Services Authority, and instead solely rely upon the “good practices” of the LBMA.
As part of their discussion, they touch upon the merits and risks of gold investors using ETFs as investment vehicles, as opposed to holding physical gold outside of the banking system. They further discuss the general flow of gold from the West to Asia, and the leasing practices of western central banks. The leased out gold is fabricated and mainly sold to Asian customers – who still regard gold as money – perhaps never to return to the leasing originators.
As well as working for GoldMoney, Alasdair Macleod also publishes articles at his own website FinanceAndEconomics.org.
Download audio file: Alasdair Macleod on safety issues with GLD and SLV
(31:23 min)
This podcast was recorded on 3 December 2012 and previously published at GoldMoney.com.
As with any commodity if someone says they own X amount of gold – they must be able to physically examine it (to test the quality and to check the physical amount).
If they can not physically examine the commodity (in this case gold) they do not really own it – they “own” promises (i.e. in the hard times that will soon be upon us – they own NOTHING).
As for the physical location of gold.
Both past history (gold confiscations) and present circumstances (the Obama regime) indicate that the United States is a terrible place to store gold in.
Private indivuals, organisations and national governments should (at once) physically remove all gold (and all other valuables) from the United States.