GLD ETF continues to lose ground against real, physical metal

In this post from August 2011 I pointed out that the price of physical gold has been rising relative to the GLD ETF.  The recent chart shows this trend to be continuing.  I suspect that at some point the trend will accelerate probably at some point go exponential.  At the end of the day, if you own GLD or some other

paper promise representing physical metal then you will be defaulted upon in whole or in part.  In fact, the gold vs. GLD chart shows the default is already happening in slow motion.

If you own GLD shares you own nothing but paper promises.  The value of gold metal is that it is no kind of promise at all, it is money, paid in full.  There are no other claims possible on it which could cause it to default.  With physical gold, nobody can ever go bankrupt someplace else resulting in you losing all your savings, Madoff style.  The pace of the collapse of paper promises for gold is still quite slow but as global economies go bankrupt, those who have stored value will want to put it into something that can be trusted.  No global fiat currency can ever claim that now given the level of globalization that has occurred over the past few decades.

Keep an eye on the gold metal to GLD ETF ratio.  It is one of my major indicators as to the real health level of the global debt Ponzi.