10:17 am - Market Report by Bill Wermine

Dear Traders,

Excuse me from being paranoid- but it is better to a bit mentally unbalanced than lose money.

Those who bought GLD ETF on my recommendation, time to sell and move on. I don't care if you have a profit or a loss


Please read this insightful article below. GLD ATF Fund could blow up in your face like Bernie Madoff.

They may not have the physical gold to back up their positions and because of the way JP Morgan/HSBC structured the fund they are able to avoid the SC and CFTC regulations and compliance. They will not even allow an audit of their gold holdings - I ask what are they trying to hide ?

In Contrast:

GDX or Am Precious metals are made up of legitimate gold mining companies that produce real gold/ real sales and real earnings that can be audited unlike GLD. As these are listed companies they are subject to SC audit.


This is just another example of how the mom and pop sheep investor gets the shaft by the vested interests. I think Obama would be happy to let this happen. He would shed crocodile tears as gold is not the friend of the politicians who debase our currency.

It may not happen for a few months or years but I see problems here and better sell before a rush to the exits. If we are offered a VSA short selling opportunity it could give us windfall profits

GDX or Am Precious Metals is OK because that consists of mining companies and come under SC regulations and offer investor protection unlike GLD.

My investing philosophy is examine the facts and act accordingly at any hint of danger. I would rather have a wrong opinion or be accused of being paranoid than lose money.

I have no trust in big American, UK and European institutions and investment banks who maintain a front of respectability but in the back room are nothing more than gangsters running a high pressure boiler room operation designed to cheat and swindle the innocent under the protection of the regulators and powerful politicians who arrogantly thumb their noses at the electorate.

Take heed
Bill