Galbraiths Bezel seen flying over central Europe. Investing in Gold (even promises of physical gold) without actually holding it on your property or person is an inherently risky proposition considering all the available nodes of deception and theft.
The below is probably not typical, but any investor in the explosion of Gold and Gold-indexed securities issued during the past 6 years should examine very seriously what, precisely, they own...and wether or not a 20-50% decline in Gold prices would mean for their investment in both liquidity and return "of" capital terms.
WARSAW -- This week's collapse of a gold-derivatives business that Polish
regulators say was a Ponzi scheme has hit tens of thousands of customers,
shaken confidence in the effectiveness of the nation's financial regulation,
and is roiling national politics in the European Union's largest emerging
economy.
On Monday, the company, Amber Gold, Sp. z o.o., which sold a gold-indexed
investment of its own design and offered higher interest rates than banks, said
it was halting operations. It pledged eventually to repay about $24 million it
said it owed to roughly 50,000 clients in Poland.
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