be confiscated too, plus all the hassle of storing physical gold.
In almost all kinds of investment a certain risk exists and has to be retained. I think the machanisam of how GLD is constructed is able to handle gradual upward move of the gold price. However, if gold price moves up rapidly, something like the price going up $500 in three days, then the couter party risk might indeed become a risk. Not conincidentally, it can also be the final ascend of gold.
By the way, I do hold GLD in my IRA account.
