Probable Cautions on SLV and GLD

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					Probable Cautions on SLV and GLD

                                  I haven’t had the time to read through this report on precious
metals ETFs. I send it out in advance because it will likely be a couple of days before I get to it.

I have warned on several occasions about the potential “Madoff” risk of these ETFs. I believe
this report should be read to enlighten holders as to this potential. It also seems to deal with
regulatory compliance and potential conflicts of interest.

One of the authors is Catherine Austin Fitts whose work is generally first rate. Here is the
Preface to the report:

This article was inspired by a conversation in January 2010 with fellow directors of the Gold
Anti-Trust Action Committee: Chairman Bill Murphy, Secretary/Treasurer Chris Powell, and
Directors Adrian Douglas and Ed Steer. In speaking about the growing role of the exchange
traded funds in the precious metals market, it was clear that the disclosure that the precious
metals ETFs described below were providing to investors was inadequate. However, was there a
material omission under securities law? I found the issues complex. Understanding the
commodities markets can seem daunting to someone like myself with a securities background.
Meanwhile, the securities markets and related legal and regulatory issues can be unfamiliar to
those with a background in commodities. I decided to ask my attorney to help me gather the
relevant information into one document to make it easier for GATA supporters and other
interested parties—whether from the commodities or securities markets—to examine these issues
and to better understand and price these securities.

- Catherine Austin Fitts

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