PM End of Month Market Commentary – August 2019
By the time this bull market is over, $48 silver will look like a bargain.
I’d love to think so, but the road so far has been paved with so many dead-of-night price slapdowns that I’m loathe to hold my breath that things will change for a while. Especially if central banks do saddle up for more QE, or if the shorts aren’t yet ready to run to the hills.
Keep stacking [popcorn] – I think it’s going to be a long ride.
Still, in the meantime this sure is a perty picture from just a minute ago….
“The GLD ETF tonnage on hand rose +54.89 tons, with 878 tons in inventory.”
How reliable are GLD’s holding reports? GLD does not give retail investors the right to redeem for any of its mystery physical gold holdings. This fact alone ensures the GLD shares to be nothing more than paper at the end of the day. GLD also has a glaring audit loophole in their prospectus that states they have no right to audit subcustodial gold holdings. To this day, I have not heard of a single good reason for the existence of this backdoor to the fund. Some other red flags I’ve stumbled upon, verified and welcome everyone else to verify for themselves:
“Did anyone try calling the GLD hotline at 866 320 4053 in search of numerical details on GLD’s insurance? The prospectus vaguely states “The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody.” When I asked about how much of the gold was insured, the representative proceeded to act as if he didn’t know and said they were just the “marketing agent” for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.”
“I remember there was a highly publicized visit by CNBC’s Bob Pisani to GLD’s gold vault. This visit was organized by GLD’s management to prove the existence of GLD’s gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this “GLD” bar was actually owned by ETF Securities.”