http://www.shtfplan.com/precious-metals/buy-physical-gold-the-rest-is-just-paper_03092010There's a rumor going around that there is fractional reserve style fraud going around in the paper gold market. The paper gold market includes futures and ETFs that are traded on exchanges like the NYMEX.
If true, paper gold holders, of which I am one (500 shares in GLD), could lose value rapidly should this kind of fraud become exposed.
This rumor, again it true, further weakens confidence in the gold market on top of events like the central bank of Ethiopia being shown to have counterfeit gold bars.
Holding physical gold still seems to rule as far as purchase power protection.
