*UPDATE: We have now confirmed that the ‘GLD’ bar marked ZJ6752 is listed in the bar list for the EFTSecurities fund, as stated by Ned Naylor-Leyland.
Screen shot of the EFTS bar list including bar ZJ6752 is included below.
We now have indisputable evidence that the gold bar held up by Bob Pisani as a ‘GLD’ gold bar is actually owned by ETF Securities!!
The Doc spoke with Cheviot Asset Management’s Ned Naylor-Leyland Sunday regarding the Euro-zone crisis and the €100 billion Spanish banking system bailout announced this weekend, extreme supply constraints in the physical bullion markets, the new allocated silver exchange launching in China this summer, and gold rehypothecation concerns.
Ned provided some explosive details regarding the infamous GLD gold bar presented by CNBC’s Bob Pisani which was quickly discovered NOT to be on the GLD’s bar list.
Ned reveals the ACTUAL OWNER of the gold bar shown on CNBC, who HAD NOT GIVEN PERMISSION to CNBC or to Bob Pisani to handle their bullion, and was shocked to see Pisani claim their bar as part of the holdings of the GLD!
In Ned Naylor-Leyland’s words, ‘this tells you EVERYTHING YOU NEED TO KNOW ABOUT ETF’S!!‘
First, for those who are not familiar with the CNBC story:
The story almost immediately went viral, but CNBC went silent on the issue over the actual ownership of the gold bar held by Pisani.
This is what Ned Naylor-Leyland had to say today, regarding the recent concerns that the GLD’s gold holdings are actually swaps from the LBMA, and whether investors will one day soon wake up to discover that the bullion they thought they owned is really rehypothecated paper:
I’ve been saying that to clients, to potential clients, and to my colleagues in London and in the investment world since 2003-4! Effectively, you MUST BE CAREFUL WHICH VEHICLE YOU USE!!
There’s no question that at some point this is going to be a HUGE problem!
You’ll remember that amazing video interview with Bob Pisani that CNBC ran where they went into GLD’s vaults in London- I’m sure you saw that Doc. You know they took his mobile off him and he ended up in the vaults and he held up this bar and he said ‘this is the kind of thing that GLD holds custody for you!’ And then immediately everyone jumped all over it and said ‘wait a minute, that bar isn’t on the bar list!’
Now I don’t know if you know this, but they never said anything about that- they basically went all quiet on that issue.
About three weeks after it happened, I happened to have ETFS (EFT Securities), which is another ETF product company come into see me at Cheviot. Quite why they wanted to pitch a gold ETF to me is anyone’s guess because they should have known that it wasn’t exactly going to be a success, but we had an interesting chat, and I brought up some problems with ETF’s, and I mentioned this video to them and I asked them whether they’d seen it. They said no, they hadn’t, but that sounded quite interesting, could I forward it on?
So I forwarded that to them and said ‘I’m very interested to have comment from you on what you think about this’.
I got an email back which stated ‘That was interesting, and what’s even more interesting is IT’S OUR BAR!’
So let’s clarify. He (Bob Pisani) was actually holding up a bar belonging to a separate ETF, WITH NO PERMISSION FROM THEM!! To me, that tells you everything you need to know!
We’ll let our readers take a moment to put 2 and 2 together:
Consider the fact that the gold bar held up by Bob Pisani who was supposedly standing in the GLD’s vault is ACTUALLY OWNED BY ANOTHER ETF, ETFSecurities, and the implications considering the GLD’s prospectus allows for gold swaps, and Harvey Organ’s research incidates the GLD’s gold is swapped/rehypothecated from the Bank of England!!
*Furthermore, bar# ZJ6752 has been confirmed as a bar on the EFTS’ gold bar list:
In XLS go to tab GBS Gold, then scroll to row 8706.
Can you say gold rehypothecation?
The Doc’s full interview with Cheviot’s Ned Naylor-Leyland covers the Spanish bank bailout (Ned states contagion is here), his outlook on gold and silver, and an update on the 1:1 allocated silver exchange he is working on with Andrew Maguire.