"With regard to the email answered by Eoin yesterday [Ed: Wednesday], re: How do we know SPDR actually holds the gold that it says it does - I understand that a fairly major UK fund manager decided to perform due diligence recently and asked for his physical holding to be delivered to his office, and this happened promptly. Sorry can't be more specific. Did anybody else in the collective read this story?"

David Fuller's view I did not see the story you mention but several high-profile managers have asked to see the gold bullion in funds which they hold, including Graham Birch before he retired from BlackRock's Gold and General Fund. Perhaps others should do this if they want first-hand reassurance.

When the tide for this secular bull market in gold eventually turns, probably due to considerably higher short-term interest rates, I would not be surprised if one or two of the instruments holding paper gold rather than bullion will be found wanting. Bull markets always attract a few scams.