My you are a conspiracy theorist, DC! They say they are backed...

My you are a conspiracy theorist, DC! They say they are backed by 100% gold so unless I see credible information to the contrary, I am inclined to believe them, like other holders.

But, let's say hypothetically that they are in fact screwing all of us. Let's postulate that they have no gold (0%, as you suggest). Do you really think that in this scenario I could email the address above and their sales manager will come back to me and say "Yes, Butcher Boy, you are right - we have no gold - we are just screwing everyone. Sorry about that! Hope you don't mind. I'm off to Barbados."

By the way, the FAQ on their web site says:

"18. Can I take physical delivery of my bullion?

For the physically backed ETCs you can arrange for physical delivery of the bullion."

http://www.etfsecurities.com/au/faqs/etfs_faqs.asp


It also seems the gold bullion was also audited on Dec 31st 2008. (Not sure I would want to spend my New Year's eve counting gold... hmmm... on the other hand...) It is apparently audited twice annually.

http://www.etfsecurities.com/au/document/downloads/gold_count_090209_au.pdf


However, I see your point that maybe, just maybe, the gold backing the ETF is leased from elsewhere so I will send another email off and ask that very question.

Stay tuned...