Safely unsecured.......................from Rico

In the wake of the Cyprus "bail-in" [read: theft of deposits] Western banking systems moved with great alacrity to assemble 'laws' establishing depositors as UNSECURED creditors of the bank, their money becoming the property of the bank upon deposit.

- Yet most people seem to 'think' that their money in the bank is safe and secure, still 'their' money (and not merely a claim check), and is 'insured'

.........haahahahahahaha!!!

Even less considered than being an unsecured creditor of a bank, is being an UNSECURED creditor of a Gold ETF like GLD.

- There are roughly 55-57 paper claims on each ounce of bullion Gold said to be held by GLD.

- If you read the prospectus of GLD, it's clear that investors who 'think' they own Gold are merely unsecured creditors of the banks who are custodians and subcustodians of any physical bullion holdings...and these banks are fully indemnified and protected from any claims.

But it gets even BETTER!

- GLD has just started treating their investors like Germany, telling them NO, they cannot redeem their Gold and refusing to exchange any physical Gold for their paper shares.

At the end of this, a LOT of people who 'thought' they owned Gold won't be getting any of it.