Toro
Diamond Member
The ETFs are supposed to hold the physical metal, not engage in futures contracts. I have no doubt that they do hold metal. But I do have doubts about whether they have full backing for their outstanding issued shares. Much has been written about this (from several analysts) over the past couple of years. Many folks also claim that the custodians are using this metal to back short positions in the futures markets.
The 10K says that they are barred from holding futures.
And wouldn't the auditor want to see their inventory? They might not count each and every bar, but I thought an auditor would at least want to go into the vault to see if its not empty.