IN REPLY TO:
What prevents the DGS from leasing the gold bar allocated to your ETF?

MR COOPER SAYS:
Ed Note: DGS no longer legally owns the gold so of course it can not lease it out. I sat with their lawyer and went through the entire sale process and believe me this would be illegal. Why would officials with nothing to gain do this knowing it to be illegal? You have to come up with a pretty convincing conspiracy theory to make this charge.

Ed Note: Philosophy apart, yes in both the PMDS and DGS scheme you do own physical gold – what do you think you are holding? Plastic Bags? The issue here is security, and having gold in your at home is not secure – do you disagree? Perhaps you have Fort Knox in your basement – but that would be an even bigger security risk, would it not?

IVO CONTINUES:

Mr Cooper says:
The issue here is security, and having gold in your at home is not secure – do you disagree?

and said before:
Perth Mint Depository System in Australia from a AAA-rated, 100 per cent government owned institution

I, Ivo, disagree that guv’mint can provide security.
Guv’mint rests on taxation and the difference between taxation and theft is that the thief does not come back (return?) periodically nor does she pretend to be stealing in the public interest

AND IVO CONFIRMS

At the Dubai Gold SECURITIES exchange, one can only own securities.
At the Perth Mint Depository System, the metal is unallocated.
In both cases, you have only your paper. No metal whatsoever.
Is paper secure?
Yes, the banksters will tell you that having a claim to something means possessing the real thing.
It’s policies such as those Mr Cooper is advocating which have led to Fort Knox being empty now.

Since Aristotle, there is something like the principle of non-contradiction (PNC) which says that it is impossible to be and not to be at the same time and in the same respect.

This principle is only applicable to human thought, not, as many authors argue, to reality.(Fernand Van Steenberghen, (F-X De Guibert, éd.), “Philosophie fondamentale”, Longueuil, Québec, Editions du Préambule, 1989, p. 296 note)

On the hand, you are saying that the Dubai Gold SECURITIES exchange traded fund is the perfect local solution. On the other hand, you are saying that PHYSICAL gold can be stored at the Perth Mint Depository System.

The applicability of the PNC to thought only explains why you can still get away with this apparent contradiction.

Indeed, the contradiction (securities vs. physical gold) is only apparent. You are stressing that the gold which would be stored at the Perth Mint Depository System is UNALLOCATED.

Now, do you want your readers to invest in physical gold or in paper?

You conclude that the place to keep gold is in a vault and you urge your readers not to carry it around in their luggage.

Carry around what?

At the Dubai Gold Securities exchange, it is only paper. At the Perth Mint Depository System it is unallocated. In neither case do your readers own a physical ounce of gold.

How could your readers carry that no-gold around in their luggage?

Ivo Cerckel

We need to put this Peter J Cooper guy on his place!
His latest gold article actually bashes physical gold owners and advocated gold ETF’s. Please comment on the article to tell him your thougts!

http://arabianmoney.net/2009/11/11/dubai-gold-heist-highlights-value-of-etfs-and-vaults/

Best regards!

Jeroen