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The GLD Trust Is Being Drained – You Were Warned About Counterparty Risk!

by David Kranzler
Investment Research Dynamics

It’s a matter of “trust.” How much do you trust GLD’s vault custodian, HSBC? Has HSBC given us any reason to place trust in both its financial reporting and the way it operates? HSBC has been already been nailed for rigging LIBOR and the LBMA gold fix.

[…] I wonder how many of those bars shown in the picture do not belong in the GLD segregated area but were moved there to give the illusion that the GLD account was filled with gold bars?

Another 9 tonnes of gold was removed from the GLD trust yesterday. This takes the “reported” amount down to 751 tonnes. The last time the reported amount of gold in the trust was at this level was November 18, 2008. The price of gold was $738.

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