Paper gold does not reflect the actual physical amount of gold out there. Basically, it is selling more contracts for gold that is not there or more contracts on physical gold than it is actually out there. What does this come down to?
Basically, a scam. Think about it the big financial companies are selling ETF shares of gold, which does not exist. They have taken something let’s say 1 ounce of gold, and instead of creating 1 derivative ETF share for that 1 ounce, which is 1 to 1 relation, the criminal wall street groups have created 100 ETF contracts to that 1 ounce. So, that 1 ETF contract (paper gold) is somewhat worthless, so when you try to convert your contract for the physical it won’t be available.
Based on my research, the Canadian gold ETFs looks to be the more honest and ETF contract ratio of physical gold is more mathetically sound. The American gold ETFs on wall street though, is like gambling…you don’t know if the gold is there if you want to convert your contracts.
Max Keiser is warning against owning paper gold, and get into physical gold like what many of the countries outside the United States is doing. Those citizens in Russia, China and India are accumulating physical gold.
Watch the video.
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Tags: ETF, fiat currency, paper gold, physical gold
