After reading this report about China’s biggest Gold fraud which says 4% of the Gold reserves may be fake, I am wondering how safe is Gold underneath these Gold ETFs, Gold Mutual Funds, and Digital Gold sold by every other Payment wallets?
@nithin Maybe a detailed post on Z-connect on this?
After pledging the gold bars .
When the time comes to unpledge after a few years .
If the gold bars happens to be the copper gold painted ; whom would u hold responsible ?
The fraud could have done by the pledgor or the fraud also could have been done by the pledgee !!!
On Friday evening, I attended a Zoom session organized by @Quantum_AMC where Chirag Mehta, the Fund Manager of Quantum Gold ETF answered many of our questions. While we await the AMC to upload the video on YouTube, I am sharing a few screenshots from the session.
@Bhuvan@nithin I had also attended another session by @Quantum_AMC about 2 weeks back, where veteran Investor Ajit Dayal interacted with us online. He made an interesting point about Sovereign Gold Bond and why he recommends Gold ETFs and not SGB.
Watch it from 1:30 - 1:34 in the timeline.
He further says that SGB is not backed by real Gold. It is backed by a Promise, a guarantee by the Sovereign Govt for the price of Gold. And a promise may break. You can liquidate a Gold ETF into a Gold bar and get physical delivery of Gold. But not in case of a SGB.
He is basically saying that by taking SGB we are not de-risking ourselves because the backing is not physical gold. System is the correct word rather than Govt. Of course, the system values Gold today. Someday it may ever happen in the future that the system starts devaluing Gold and something else takes that place. Or it may never happen.
I watched it in parts. Let me know the timings of that webinar. Will block my time accordingly.