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I've noticed that the stocks and shares market gives investers the ability to invest in physical gold without having to have the physical gold, i.e. view EFT's such as LON:PHGP.
ETFS Physical Gold (PHGP) is designed to offer security holders a simple, cost-efficient and secure way to access the gold market by providing a return equivalent to the movements in the gold spot price less the applicable management fee.
PHGP is backed by physical allocated gold held by HSBC Bank USA (the custodian). Only metal that conforms with the London Bullion Market Association's (LBMA) rules for Good Delivery can be accepted by the custodian. Each physical bar is segregated, individually identified and allocated.
Sounds like when you buy a share of such an exchange-traded fund ETF, the gold is held for you in a bank, where the value of your ownership of your gold depends on the current market value of the gold.
So my question is, is such an investment halaal? I guess that I am really asking is, can anyone give me any reasons why such an investment might be haraam?
Sunni view preferred.