Can we trust the silver EFT?

[Ardent Listener]

Link posted for your information only. I present no opinion on the subject.

Ardent Listener

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http://www.dollarcollapse.com/iNP/view.asp?ID=52

[Lowell]

The only good I can see that has resulted from the EFT is that it has driven the price of silver up. It still has a long way to go before it reaches its actual value. Only when the true shortages of physical silver come to light will the real value become evident. Silver's industrial uses are the engine behind it true value. I don't see how an EFT can be paid off in CASH. If that is the case then the EFT itself is not worth the paper it is written on.

That was a good read, thanks for the article.

[Prospector]

But like any other financial instrument, a bullion ETF requires a degree of trust. Most investors (including me) buy these funds on the assumption that their accounting is honest and that the metal they say they have really is sitting in their vault. Hardly anyone actually goes through an ETF's prospectus or 10-K line-by-line to see if this is an iron-clad guarantee.
(emphasis added)
You are talking about buying promises in a business that is famous for broken promises. They call the current condition a "subprime crisis", but it isn't; it's a systemic disease throughout the entire business. You can't even store physical metal at your bank and trust them to let you have it when you want it. As long as there is no problem there is no problem. But guess what? When there is a problem, you are just another schnook creditor standing in line with your claim while the assets (if any) and reserves (if any) are sold to somebody else.

These are thieves. It is not wise to do business with thieves.