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 Deutsche Bank's Gold-backed ETF Gone Bad?

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nevermind

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PostSubject: Deutsche Bank's Gold-backed ETF Gone Bad?    Fri Sep 02, 2016 9:56 am

MarketSlant.com wrote:
First Lets Identify the Players

   Xetra-Gold is a Bullion backed ETF created and branded by Xetra. Not unlike the Dow-Jones brand of indices
   Deutsche Borse Exchange (DBE) is the commodities exchange on which this ETF trades
   Deutsche Bank (DB) is the ETF's sponsor
   GodMode Trading/ Oliver Baron is the shareholder who was rebuffed in his attempt to take delivery

Play by Play

1. GodMode claims that Deutsche Bank, the ETF sponsor and guarantor of the Gold backed ETF was unable to deliver the Gold        Godmode sought delivery of.
         - The Xetra-Gold Prospectus clearly states that shares are convertible into physical Gold at any time and brag about the             amount distributed

   2. Deutsche Borse today released a statement saying: "Deliveries are made by a committee designated by investor branch of a bank requirement is that the office offers this service because the delivery can take place only through the depository bank of the investor".
         - Essentially, Deutsche Borse can make delivery at any bank branch willing to execute.
         - And that means the banks can all refuse to do so.

   3. Why would a bank refuse ot handle the transaction other than too small or too inconvenient?
         - Counterparty Risk: In the case of a non DB branch, They are not comfortable with the counterparty on the other side of the transaction, in this case Deutsche Bank ultimately. They do not want to lay out Gold on a promise to get it back from DB
         - A Deutsche Bank Branch: refusal by a DB branch is what happened here to GodMode. reasons?
             * that particular branch was unable to deliver, because it didn't have the Gold or a safe place to keep it- So which branch did they direct GodMode to?
             * If GodMode wasn't given a branch location where his execution could occur, then-Where is the Gold?

   4. GodMode then contacted Deutsche Borse Exchange seeking an alternate place to get their Gold
         - DBE was unwilling/unable to give GodMode a branch or any bank that could make delivery without logistic problems

Possible Explanations for what is in the least a technical violation of the prospectus contract  At worst it begs the question as to why DB took a delivery holiday and why was DBE complicit?    


Read more here:

http://www.marketslant.com/articles/update-xetradb-gold-delivery-story

http://www.marketslant.com/articles/update-deutsche-boerse-responds-xetra-gold-delivery-allegations

http://www.marketslant.com/articles/update-4-deutsche-bank-gold-no-delivered-reasons-business-policy
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Whacky Stacker

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PostSubject: Re: Deutsche Bank's Gold-backed ETF Gone Bad?    Fri Sep 02, 2016 10:19 am

So where's the gold? All on paper?
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nevermind

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PostSubject: Re: Deutsche Bank's Gold-backed ETF Gone Bad?    Fri Sep 02, 2016 3:29 pm

Whacky Stacker wrote:
So where's the gold?  All on paper?

That's what I'm betting. If you remember, a couple of years ago, the DB told the US that they wanted their gold back. The US was the repository of most of the world's gold from the thirties. (I think) The US told the DB that they could have it over the next 10 years, not all at once. It was speculated at that time that the US didn't have enough physical gold on hand to fulfill the DB request.
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Rwsutley

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PostSubject: Re: Deutsche Bank's Gold-backed ETF Gone Bad?    Sun Sep 04, 2016 8:31 am

Rumor of precious metal ETFs collapse have been around for many years. May well be there is only one ounce of gold or silver backing up one hundred ounces value in ETFs, but an individual or even a group of investors will not have the power to expose the scam because those who are running the scam are backed by big government. The only way to get full disclosure will be for a hostile government to buy a large enough share of ETFs in order to embarrass the fund backers. China or Russia could easily do so and will if they see an advantage.
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fl57caveman

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PostSubject: Re: Deutsche Bank's Gold-backed ETF Gone Bad?    Sun Sep 04, 2016 9:18 am

if you don't hold it, you don't own it..

ETF
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Rwsutley

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PostSubject: Re: Deutsche Bank's Gold-backed ETF Gone Bad?    Sun Sep 04, 2016 7:37 pm

fl57caveman wrote:
if you don't hold it, you don't own it..

ETF

The same can be said for fiat held in your bank account. It's all digital computer mumbojumbo that can easily vaporize in an instant.
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