I was reading my morning dosage of blogs today and came across this nugget in an article from Financial Sense:
Look for some major stories soon about the raids to the GLD and SLV inventories by their custodians engaged in naked shorting.
I haven't owned GLD or SLV in a while precisely because I suspected there could be some funny business going on behind the scenes. Now it looks like there is more scrutiny on the subject, post-MFG blowup. Does anyone own GLD or SLV? The GLD website says they have just over 41 million ounces in the trust, but how much of that is imaginary?
From the GLD website:
All of the Trust’s gold is held by the Custodian, HSBC Bank (USA) NA ("HSBC"), in their London vault except when the gold has been allocated in the vault of a sub-custodian.
"Sub-custodian". Huh. I'm guessing that their London vault might be a little bit on the empty side.
Original article is here: http://www.financialsense.com/node/7199