11:11a ET Saturday, July 18, 2009
Dear Friend of GATA and Gold (and Silver):
In an essay posted this week at Seeking Alpha, J.S. Kim, proprietor of the SmartKnowledgeU investment advisory service (http://www.smartknowledgeu.com/ [1]), brilliantly skewers the gold and silver exchange-traded funds as likely frauds, perpetrators of a system of fractional-reserve gold and silver banking that is built on conflict of interest. Kim quotes the research of silver market analyst Ted Butler and GATA board member Adrian Douglas.
Kim writes:
"That physical gold held for the GLD may be held in unallocated gold accounts where gold is not segregated from the custodian's assets may mean that multiple entities have claims on the same gold bars. In theory, the gold held in the custodian's vaults may be used for delivery against shorts they hold in the futures markets if necessary even though GLD shareholders have a claim on this gold."
Kim's commentary is headlined "Are GLD and SLV Legitimate Investment Vehicles?" and you can find it at Seeking Alpha here:
http://seekingalpha.com/article/149209-are-gld-and-slv-legitimate-invest... [2]?
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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The Silver Summit 2009
Thursday-Friday, September 24-25, 2009
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