This from the latest BullionBuzz on the possible collapse of EFT's.

Authors Andrew Bogan, Brendan Connor, Elizabeth C. Bogan write…

Since their invention in 1993, ETFs have gone from obscurity to making up more than half of all the daily trading volume on US stock exchanges. They also made up 70% of all the canceled trades during the Flash Crash of May 6, despite representing just 11% of listed securities in the US, suggesting that ETFs are poorly understood by both investors and regulators.

They are popular with two very different groups: retail and institutional investors looking for low cost and highly liquid vehicles with which to buy whole indices in a single trade; and hedge funds and other traders looking for a simple way to mitigate broad-market risks with a single trade. Being able to short an entire market index or a whole sector with one transaction, instead of many separate stock shorts, makes ETFs widely used as hedging vehicles by short-sellers, and many new ETFs are being designed specifically for marketing to short-sellers.

These seemingly opposite interests in ETFs make for a large and lucrative market not just for ETF operators, but also for the authorized participants – institutions that can create or redeem large blocks of new shares in an ETF, and the brokers that profit by trading ETF shares. The mechanics of short selling ETFs raises some serious concerns; for a start, owners of ETF shares often far outnumber the actual ownership of the underlying index equities by the ETF operator. Read more here: Bullion Buzz

Gold is Money – Replay With Nick Barisheff, President and CEO, and Paul Desousa, Vice President of Business Development, Bullion Management Group Inc. Length: 1:03:12 In "Gold is Money" Webinar, author Nick Barisheff provides a penetrating look at the root causes behind the untenable state of our modern debt based economy—starting with the way we think about gold as money. For forty years, since President Nixon removed the US dollar from the international gold standard, the world has, for the first time in recorded history, experimented with a global debt based monetary system. At the root of this “con game” is the groundless perception that debt,  based on nothing but the government’s promise to pay,  is a viable economic foundation. The negative consequences of this faulty logic are now appearing everywhere. Some goals of this webinar are to show participants: How to voluntarily restructure their financial mindsets before they are involuntarily restructured for them through economic calamity The distinct difference between money and currency How they can regain individual economic sovereignty through changing the way they perceive money How they can confidently preserve wealth through the coming years of uncertainty

Go to Bullion Management for the webinar.

Catch the following seminar if you possibly can. It promises to be good….

LIVE WEBINAR Gold is Money Thursday June 17, 2010 11:15 am -12:15 pm ET With Nick Barisheff, President and CEO, and Paul Desousa, Vice President of Business Development, Bullion Management Group Inc. In "Gold is Money" Webinar, author Nick Barisheff provides a penetrating look at the root causes behind the untenable state of our modern debt based economy—starting with the way we think about gold as money. For forty years, since President Nixon removed the US dollar from the international gold standard, the world has, for the first time in recorded history, experimented with a global debt based monetary system. At the root of this “con game” is the groundless perception that debt,  based on nothing but the government’s promise to pay,  is a viable economic foundation. The negative consequences of this faulty logic are now appearing everywhere. Some goals of this webinar are to show participants: How to voluntarily restructure their financial mindsets before they are involuntarily restructured for them through economic calamity The distinct difference between money and currency How they can regain individual economic sovereignty through changing the way they perceive money How they can confidently preserve wealth through the coming years of uncertainty Don’t wait register now for this compelling one hour session that will enhance your investing knowledge. Includes live interactive Q&A, qualifies for one CE Credit Registration closes at 5pm June 16th, 2010 Nick Barisheff is President and CEO of Bullion Management Group Inc., a bullion investment company that provides investors with a cost-effective, convenient way to purchase and store physical bullion. Widely recognized in North America as a bullion expert, Barisheff is an author, speaker and financial commentator on bullion and current market trends. Paul Desousa is the Vice-President of Business Development at Bullion Management Group Inc. He works with the investment community, assisting in building and protecting client’s portfolios and thriving during changing market conditions.   Paul has studied complex topics like inflation, the monetary system and precious metals and is passionate in conveying these principles to the investment community. As a speaker, he has presented at conferences on why precious metals bullion it is important for real wealth preservation and true portfolio diversification.

This from Bloomberg Weekly:

By Glenys Sim and Gavin Evans

May 31 (Bloomberg) — Gold headed for a second monthly gain on speculation that Europe’s debt crisis will stall economic recovery and bolster demand for the metal as a haven. Palladium was poised for its first monthly drop since the end of 2008.

“Gold’s fortunes are fluctuating daily in accordance with waxing and waning investor sentiment with respect to the European debt crisis,” Gavin Wendt, senior resource analyst with Mine Life Pty Ltd. in Sydney, said in an e-mail. “This situation is unlikely to resolve itself any time soon.” More here: Bloomberg

Gold continues to be a hedge against the madness of countries that create more debt than they can handle. Do you have solid, safe bullion?

Bullion dealer Greg McCoach is interviewed in the Gold Report as reprinted in Commodity Online. He talks about gold, the stock market and what he believes is another impending major correction. He is also very much against gold ETF's. Here is and excerpt: "My mantra for the past 10 years is to get the leverage with the precious metals juniors and take profits when they are running hot to build a significant position in the precious metals. I recommend buying gold, silver, platinum, and palladium and taking delivery of those metals. Don't rely on ETFs, pooled accounts, or certificate programs to do this for you. In the end, I believe all of these products will be proven to be fraudulent. In other words, you won't be seeing the benefit in those investments as the gold prices rise because the gold doesn't exist the way they say it does. Those who want to protect themselves need to own the physical precious metals themselves and take delivery."  Read more here: Greg McCoach

GATA Chairman Bill Murphy was interviewed for five minutes today on the Business News Network in Canada about the rigging of the gold and silver markets, tomorrow's hearing of the U.S. Commodity Futures Trading Commission on futures trading in the precious metals, and GATA's hope to present "whistle blower" evidence at that hearing. You can watch the interview at the BNN Internet site here:

http://watch.bnn.ca/#clip280484

GATA is an important group in the battle against precious metals market manipulation. Find them here: http://www.gata.org/

Do you have real gold and silver bullion? Talk to me now and avoid heartache over a poor investment choice.

China's economic policy and tension with the US over currency is good for the price of gold. Here is an excerpt from a Business Week article: "The precious metal may also benefit from escalating tension between the U.S. and China, according to HSBC Securities analyst James Steel. Chinese Premier Wen Jiabao yesterday rebuffed calls for the yuan to appreciate." Read more here: Gold Advances

Investment guru Peter Schiff talks about gold and the economy in this piece in Contact.com. Here is an excerpt: "Schiff sees the U.S. economy unraveling. The debt is unsustainable, made tolerable for the moment only by interest rates kept artificially low by a meddling central bank, the Federal Reserve. He likens the government's fiscal and monetary policies to a Ponzi scheme, destined to collapse when when China and other foreign lenders finally cut off credit. "At some point, they are going to look at the U.S. and decide we can't pay it back," he said. The dollar will crash. Interest rates will rise, fueling inflation that could leave currency worthless. And that's where the gold comes in. "You have to have real money, gold and silver," Schiff said." Read more here: Bullion and Policics

This article from Wealth Bulletin quotes gold expert James Turk on gold and currencies. Here is an excerpt: "All too often, people look at the price of gold the wrong way, according to James Turk, founder of bullion dealer GoldMoney.com, talking to US journal Barron’s.

He said the price of gold rose by between 10% and 20% against the world’s mainstream currencies over the last ten years. The Swiss franc has held its ground the best, with an average loss of just 10% a year against gold. The Sri Lankan rupee has dropped in value by 20% a year. The US dollar and sterling have each lost 15% annually." Read more here: Gold & Currencies

Adrian Douglas writes a compelling article in Before it's News about the 'paper gold' that is being created globally, and in particular by the London Bullion Market Association (LBMA). Here is an excerpt: "I estimate that as much as 50,000 tonnes of gold has been sold that does not exist. That is equivalent to all the gold reserves in the world that are yet to be mined, or put another way, 25 years of gold production. That is the grand-daddy of all short positions! The fractional reserve operation of the LBMA is likely to be the next Madoff scandal, except multiplied by 100…a 5 trillion dollar fraud as opposed to a 50 billion dollar fraud."

Further he wirtes…"There is only one way to protect yourself and to profit. You should own physical bullion. Simply don’t trust intermediaries like the LBMA who purportedly sell you gold but label you an “unsecured creditor”. Anyone who thinks they hold gold on the LBMA should demand delivery. The major desirable and unique characteristic of gold is that it is no one else’s liability, unlike almost every other financial asset. If you own a credit risk, an I.O.U. gold, you have not achieved the principle objective of owning gold. Are you a “gold owner” or an “unsecured creditor”?…you can not be both!" Read the article here: LBMA

Do you own real gold?