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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: GLD what it really is..
I just ran (from the Investor villagePM MB) into what might be the best and easy to understand description of GLD - SLV I ever seen. Once this ponzi blows up the a lot of so call investors will be calling for murder and ask to get their money back. Good luck with that, from my point of view they will get what they deserve for being so lazy and stupid in trusting such a scam without haven undrtaken any basic due diligence. Here it goes:
GLD and SLV represent an unknown amount of physical gold / silver until you've got it allocated AND under your own direct control. GLD/ SLV's major weakness is:
- the physical is non-allocated
- the minimum amount of shares that can be redeemed for physical is 100,000 shares (GLD), ‘’a basket’’.
- you'll need to go through procedures and transfer via unallocated accounts with Bullion banks/ brokers before you can claim direct ownership of allocated gold.
So bottom-line you're holding paper until you get physical allocated.
In order to get physical allocated from GLD:
1. investor must pay-up cash for a 'basket' of 100,000 shares, i.e. spend over 18 mio US$ at current prices
2. It must be redeemed through an "Authorized Participant"; one must go to have a bullion banker create such basket for you.( essentially the bullion banker must allocate gold from its own unallocated pool to the basket )
3. Gold is then transferred from the GLD allocated account into your broker's unallocated account.
4. then you redeem your basked and
5. have your broker allocate the gold to you
As many here know, bullion banks are highly leveraging their physical ( fractional gold banking, up to 100:1 leverage is normal practice according to CME's Christian admitted during the CFTC hearings ),so once a scramble for physical breaks loose, those with GLD/ SLV shares paying up to get allocated gold /silver,will likely be too late & consequently become bagholders of worthless paper.
Worst of all, investors' money in GLD / SLV, may be used by bullionbanks for time-being ( say for up to 99% of it )to invest elsewhere, play the freakin derivatives market, finance their off balance investments, stopgap their debt etc. etc. without paying out a single cent of interest.
Those who believe they're buying ownership of a serious amount of physical gold when buying GLD shares,they're being scammed !
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