The Toronto and Wall Street investment community still loves this total dog of a stock, as collusion and kickbacks must be main features to prop the stock. Just look at its Board of Directors to detect vast syndicate presence. In fact, it has two Boards to provide extra service to the stockholders, more like one to the syndicate. So in conclusion, the cover of huge hedge books cost the big mining firms tens of billion$ in funds that otherwise would be devoted to mine projects and additional gold output. It did not happen, since mine industry funds went into the sewer of future gold price suppression. The most curious aspect of this factor is the lack of investor lawsuits for failed fiduciary responsibility.
When the billionaire sovereigns demand their gold to be returned home, no longer under custodial mismanagement, this does not represent new demand. The new demand comes from legitimate funds like those run by Paulson and Sprott, which have actual gold bullion behind their funds as stipulated in the prospectuses. The trust for the biggest Exchange Traded Funds is grossly misplaced in my view. No further slam criticism will be provided for the GLD & SLV funds. In my view, they will each become objects of criticism, lawsuits, and possible legal action at later dates. When the flack comes, their shares will probably trade at deep discounts to the gold & silver prices, maybe sooner than one might think. Little fanfare came when the decade closed in December, and the big winner among all investment classes was Gold. As the story of its performance is more fully recognized, when the facts sink in, expect investment demand to increase.
THE GOLD BASE AMIDST CONFUSION