'paper gold challenge, page-37

"How can big investors convert ETFs into physical if there is no physical backing the banksters gold?"


"DETERMINATION OF REDEMPTION DISTRIBUTION

"The redemption distribution from the Trust consists of a credit to the redeeming Authorized Participant’s Authorized Participant Unallocated Account representing the amount of the gold held by the Trust evidenced by the Shares being redeemed plus, or minus, the cash redemption amount. The cash redemption amount is equal to the value of all assets of the Trust other than gold less all estimated accrued expenses and other liabilities, divided by the number of Baskets outstanding and multiplied by the number of Baskets included in the Authorized Participant’s redemption order. The Sponsor anticipates that in the ordinary course of the Trust’s operations there will be no cash distributions made to Authorized Participants upon redemptions.
Fractions of a fine ounce of gold included in the redemption distribution smaller than 0.001 of a fine ounce are disregarded. Redemption distributions are subject to the deduction of any applicable tax or other governmental charges which may be due."

SPDR Prospectus Page 20
http://www.spdrgoldshares.com/media/GLD/file/SPDRGoldTrustProspectus2012.pdf