James Turk: The fractional reserve aspects of gold ETFsSubmitted by cpowell on Thu, 2009-12-17 16:57. Section: Daily Dispatches
12:01p ET Thursday, December 17, 2009
Dear Friend of GATA and Gold:
GATA did not originally call your attention to Adam Hamilton's most recent essay, "GLD Conspiracy Theories" (http://www.321gold.com/editorials/hamilton/hamilton121409.html), a defense of the foremost gold exchange-traded fund, because of its brazen lack of seriousness. Hamilton wrote:
"Conspiracy theorists always ask how I know that GLD really holds physical gold bullion as advertised. I don't know, and neither do they. Nothing is certain in the financial markets, and the anti-GLD crowd hypocritically tries to hold GLD to a standard that no other investment is held to. All markets are based on trust, and as investors we can never be certain whether anything is legitimate."
But apparently in response to Hamilton's essay, GoldMoney founder, Free Gold Money Report editor, and GATA consultant James Turk once again has soberly outlined the unanswered concerns about gold exchange-traded funds. Turk's essay is headlined "The Fractional Reserve Aspects of Gold ETFs" and you can find it at the FGMR Internet site here:CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.