Possible Fraud in Silver ETFs

by James & Miel on July 29, 2009 · 0 comments

Hi All,

Since we’ve blogged about owning silver before, it’s only responsible that be mentioned.

Evidently there have been accounting anomalies with iShares SLV and London-based ETF Securities (SLVR) exchange traded funds.

These anomalies were identified by an investigative team working with Zerohedge.com. After catching wind that there were possible problems with these funds, Zerohedge obtained the inventory lists of these ETFs and subjected them to a statistical analysis. The results of Zerohedges’ analysis indicated the number of duplicate entries in the inventory lists of these funds was statistically far more than what would expect due to chance alone. Their conclusion is that two factors were possibly operating: fraud or poor bookkeeping. Either way, avoid these funds if you want to create wealth.

In either case, investors in these funds should be forewarned.

Here is the paper. Get it while its hot. Controversial documents like this have a habit of being quickly taken down.

Best,

James



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