One of the biggest ponzi schemes in the equity markets are commodity based Exchange Traded Funds (ETF's) that brokers sell to clients promising them that their paper positions are fully backed by a physical commodity. For years, the lack of real gold held in reserve for each share sold in both the GLD and SLV has been a great deception to investors as many chose to buy into paper gold rather than accumulate the physical based on the belief that they owned the gold they had recorded on their paper stock certificates. And sadly, the growth of these ETF's allowed banks to leverage far beyond the actual amount of metals they had on deposit, and has been a primary catalyst in their manipulating and controlling the market price of gold and silver.
So it is almost comical when a commodities expert and consultant guest from CNBC announces on Feb. 12 that he is going to create a new set of gold ETF's, only that they will not be backed by physical gold, but instead backed by a basket of currencies in the amount of their value in relation to gold.
In short, this new investment will be a gold backed ETF that is more a Forex platform than a commodities based equity.
We are excited to announce the launch of a series of exchange traded funds sponsored by AdvisorShares, the Gartman Gold/Yen (GYEN), Gartman Gold/Euro (GEUR), and Gartman Gold/British Pound (GGBP) ETFs. Treesdale Partners, LLC, a New York based registered investment advisors, will serve as the portfolio manager for the three ETFs. Treesdale will also sub-advise AdvisorShares International Gold ETF (GLDE), an ETF with a balanced allocation to the three previously mentioned ETFs as well as additional exposure to gold in US dollars.
These funds will provide investors with an opportunity to buy gold financed in foreign currencies.
GYEN $12.80 Gold in Yen terms
GEUR $12.80 Gold in EUR terms
GGBP $12.80 Gold in Sterling terms
GLDE $12.80 Gold; 25% each in terms of US$; - Dennis Gartman via Zerohedge
Like the quadrillion dollar behemoth that is the Derivatives market, nearly all investments outside of Real Estate and physical metals are simply paper products backed by nothing. At this point in time, every currency in the world is completely fiat, and subject to inflation, devaluation, and manipulation by governments and central banks the world over. And when you add the fact that Gartman's new Gold ETF is going to be a purely paper asset trading vehicle to use to purchase other paper assets which then give you a claim to own an even different paper asset, is it any wonder why foreign nations like China and Russia are pushing hard towards the implementation of a new global financial system based on the use of a gold trade note?
Sadly for investors, trusting in nearly everyone who is an employee or consultant for CNBC for investment advice is a risky proposition. If you had followed Jim Cramer's stock picks in 2011 and 2012, you would have lost more than 54% of the time, and had you invested in Dennis Gartman's last ETF (ONN and OFF), you would have found yourself caught up in an ETF death spiral that had few buyers interested in the investment.
The world is quickly rejecting paper assets that are backed by nothing, and even more, nations themselves are debasing their currencies in a war of devaluation. Which is why this new ETF being brought to the market by Dennis Gartman, which is labeled a Gold ETF, but is not backed by gold and trades in currencies, seems like an insane attempt to keep the quadrillion dollar paper markets flowing, and keeping investors away from tangible, physical assets.