Gyroscopic Investing

When I started, I primarily held GLD, but then diversified into IAU as well.  After reading more about how GLD is managed by HSBC, JP Morgan in London and some of the interesting history of those companies between 2008-2011, I'm thinking of diversifying by splitting my paper gold holdings across several funds (IAU, SGOL, PHYS, GTU, others?) to reduce the "paper gold" risk.

Obviously its never as good as physical gold, but my thinking is that diversification across several custodians and storage locations will reduce risk.

Thoughts on doing this?

(PS: I understand the benefits of physical gold, and indeed had some physical gold, guns and ammunition before my horrible boating accident

It all depends on your comfort level. Just remember there is a fine line between prudence and paranoia. An awful lot of the negative stories about the custodians of GLD and IAU come from dubious sources (i.e. GATA and their fellow conspiracy theorists). That said, if having more than one fund makes you sleep better, then go for it. But if you have a half dozen, then maybe you just need to stick with physical since it sounds like you fundamentally don't trust the gold funds. More of something that you just don't trust is not going to help you sleep at night.