Bank of Montreal warns against other banks in gold business
By GCRU Gold News on Tuesday, June 7 2016, 01:56 - Permalink
The prospectus provides a few interesting and even amusing details:
-- It cautions that the "official sector" is active in the gold market and can affect prices, an acknowledgment that will never make it into any reports by mainstream financial news organizations.
-- The fund will not insure its assets, trusting the Royal Canadian Mint to protect them.
-- The fund is structured separate from the Bank of Montreal so that its assets will not be vulnerable to claims by creditors against the bank.
-- And the fund seeks to eliminate "derivatives risk (i.e., the use of unallocated gold, gold certificates, exchange-traded products, derivatives, financial instruments, or any product that represents encumbered gold)," as well as "'empty vault risk' or gold bullion lending risk (i.e., the practice of the gold custodian lending, pledging, hypothecating, re-hypothecating, or otherwise encumbering any of the investors' underlying gold bullion)."