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<p>[QUOTE=&quot;Cloudsweeper99, post: 686244, member: 3011&quot;]I think what you are missing is the distinction between the futures contracts that trade on the Comex exchange and the physical gold and silver in the warehouse for which warehouse receipts have been issued to the owners.&nbsp; The Comex warehouse receipts are most definitely pieces of paper backed in full by gold and silver.&nbsp; Of this there is no doubt.&nbsp; The futures contracts are just promises. Anybody can sell a futures contract without holding physical silver in the warehouse.&nbsp; Large traders who can disrupt the market must demonstrate to the regulators that they have access to silver held inside or outside of the warehouse.&nbsp; That&#039;s where China comes in.&nbsp; The rumor is that some large banks were shorting silver and relying on off-exchange contracts with China to supply the physical silver if needed.&nbsp; Now that this is in doubt, some futures contracts may default -- or so it is said.&nbsp; That&#039;s what Butler is saying.&nbsp; Chapman is asserting that there is no gold or silver in the Comex warehouses and that GLD doesn&#039;t own physical gold and only holds futures and derivatives contrary to what is stated in the prospectus -- but he offers no proof.&nbsp; </p><p><br /></p><p>Personally, I think Butler might turn out to be correct and the contracts will default -- or more likely be settled in cash.&nbsp; But Chapman has a high probability of being wrong.&nbsp; The two men are most definitely talking about two different things.&nbsp; Comex warehouse receipts for gold and silver are completely safe; safer than a safe deposit box or anyplace in your home no matter how well secured.&nbsp; It is irresponsible for Chapman to encourage people to remove it.&nbsp; GLD has problems, but faking their gold holdings probably isn&#039;t one of them.[/QUOTE]</p><p><br /></p>

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