asx code gold , page-8

PA, You trust the auditors more than I do. If the allocated gold backing GOLD is encumbered to multiple parties you'll just be in the list of creditors if the game blows up.

Most futures exchange contracts are settled for cash. Most GOLD redemptions are for cash. It would be mighty tempting to use the gold in the vault since it is just sitting around. So tempting, in fact, that I'd assume anything not specifically proscribed by the prospectus to be fair play in the eyes of the GOLD fund managers. Don't big mutual funds loan out shares for a fee to short sellers? Hmmm....