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To: Sirius Lee
ETFs no more hold physical gold than banks hold the physical cash of their depositors.

Investors in the Gold ETF - GLD liquidated 300 tons of the metal this year.

The above sentence was from the original post. As far as I know, GLD holds enough gold to redeem every share.

42 posted on 06/21/2013 8:56:02 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot
As far as I know, GLD holds enough gold to redeem every share.

It doesn't. Every share of GLD can be sold twice, long and short, so... twice as many shares as there is of the physical that is supposed to be backing it.

43 posted on 06/21/2013 1:20:24 PM PDT by Sirius Lee (All that is required for evil to advance is for government to do "something")
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