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Polish gold EFT "amber gold" goes belly up

bronco2078bronco2078 Posts: 10,212 ✭✭✭✭✭
in Precious Metals

Turns out when investors wanted to take delivery they couldn't image

zerohedge

Is this the first gold EFT to go under ? this one might not affect anyone here but it looks to be a juicy scandal in the making , the company owned a low cost airline as well that went under and may have been using customers money to buy into the airline instead of buying the gold they were supposed to.


Comments

  • derrybderryb Posts: 36,790 ✭✭✭✭✭
    Not an ETF (Exchange Traded Fund), assuming you meant ETF. Amber Gold was a private gold investment fund in Poland run by what appears to be a small scale Bernie Madoff. Another example of fleecing modern gold rush customers,

    However, ETFs. like all paper investments, have counterparty risk. ETFs are regulated by the SEC who may or may not be asleep at the wheel. Some ETFs are actually backed by a physical asset (such as Sprott's silver ETF PHYS or GDXJ which is backed by actual mining shares) while other ETFs are nothing more than derivative bets on things that cannot be backed by a physical asset such as an index. Leveraged and Inverse ETFs (AGQ vs. ZSL) are derivatives that take bets on silver price movement (up or down).

    While derivatives are normally not regulated (thanks to Greenspan, Rubin, Summers and Clinton) if they are publicly traded they do fall under the jurisdiction of the SEC.

    to learn more about ETFs

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • bronco2078bronco2078 Posts: 10,212 ✭✭✭✭✭


    Yes I meant ETF , I was suffering from acronym dyslexiaimage.
  • tneigtneig Posts: 1,505 ✭✭✭
    derryb:
    Thanks for that great overview of ETFs. Really need to learn more about this and heading out to that link. (adding the link to my ref doc)

    Bronco:
    Good article. WTx? I mean those investors went to gold because they felt it was safer or a hedge or a better investment or just blind greed,
    -and that's what they did with it? Ya know what W. C. Fields would say.
    Likely did affect somebody here or their connected family. Its already Done. They took the money, and the hand slapping they'll get will be worth it. The pay-offs along the way kept the scam going for 3 years, and the final payoff would likely keep them outa jail or a minor punishment. It's actually a dam good scam, income, and business if you don't mind spending a year in jail now and then. And, just before it all goes to heck, just call the president the night before and you're good!

    Lots of folks local putting themselves in the same boat, whether it be PM or dollar related.

    COA
  • derrybderryb Posts: 36,790 ✭✭✭✭✭
    ETFs are a lot like mutual funds but much easier to trade. They have their own exchage symbol and trade just like stocks. A good vehicle for the investor looking to gamble, looking to hedge or looking for a good "basket."

    Leveraged ETFs (climb X2 or X3 as the underlying investment) are for the gambler. Inverse ETFs (go up when underlying investment goes down and vice versa) make shorting easy.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • Timbuk3Timbuk3 Posts: 11,658 ✭✭✭✭✭
    That's why I like to buy my gold
    from respectable dealers and
    take delivery on the spot !!!
    Timbuk3
  • pmcollectourpmcollectour Posts: 1,211 ✭


    << <i>That's why I like to buy my gold
    from respectable dealers and
    take delivery on the spot !!! >>




    image
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