China Gold Fraud - How safe are the Gold ETFs?

[rupeshmandal]

@RahulKhanna I read your latest post on Gold

Should you invest in gold?

Gold is one of those asset classes that evokes a lot of strong opinions among investors. Some investors consider it a must in any portfolio, while some think it is useless since it has no intrinsic value or cash flows (dividends etc), which some take the safe path and recommend a tiny 5-10% allocation. This question of whether you should have gold in your portfolio seems even more pertinent now given the doom and gloom economic scenario, which is when people say that gold performs the best. And …

I would like your comments on this thread i.e. about the recent Gold fraud in China and a related question - how safe and genuine are the gold beneath the Gold ETFs and Gold funds we invest in.