Episode 79: Andy Duncan interviews Alasdair Macleod, Head of Research at GoldMoney. They talk about possible security issues with the big gold and silver ETFs GLD and SLV due to insufficient regulation, and also discuss western central banks’ gold leasing activities.
In his recent article published on the GATA website, Alasdair Macleod writes about how custody arrangements for the GLD and SLV exchange traded funds may be compromising shareholder security because they exist outside the regulatory regime of the UK’s Financial Services Authority, and instead solely rely upon the “good practices” of the LBMA.
As part of their discussion, they touch upon the merits and risks of gold investors using ETFs as investment vehicles, as opposed to holding physical gold outside of the banking system. They further discuss the general flow of gold from the West to Asia, and the leasing practices of western central banks. The leased out gold is fabricated and mainly sold to Asian customers – who still regard gold as money – perhaps never to return to the leasing originators.
As well as working for GoldMoney, Alasdair Macleod also publishes articles at his own website FinanceAndEconomics.org.
This podcast was recorded on 3 December 2012.