ETF "gold fund" may not be all that it's cracked up to be.
roadrunner
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ETF Gold Fund analysis
Here is an interesting article from www.Kitco.com that sort of indicates there are some potential problems with this new gold fund.
As I mentioned a few days ago, anyone in our hobby should get physical possession of any gold they intend to be invested in. Forget paper ownership. The questions raised in the article suggest that the fund may not be able to guarantee that they have the gold.
Imagine when it's time to cash out and not enough gold is left. Similar to our current 1% fractional reserve banking system that was founded on the principle of a 10% fractional reserve.....NICE!
The ETF's stated purpose is to track the price of gold. That's it. Basically a futures contract or derivative. The author also hints at the suggestion that with the rapidity that this fund was brought to market that it just might be a trojan horse initiated by the COT or gold cartel interests (central bankers and company). What better way to help control the price of gold than manipulating another paper market, just as they have done with gold futures for the past decade. Maybe a last gasp by the COT to reign in the price of gold.
Interesting reading.
roadrunner
Here is an interesting article from www.Kitco.com that sort of indicates there are some potential problems with this new gold fund.
As I mentioned a few days ago, anyone in our hobby should get physical possession of any gold they intend to be invested in. Forget paper ownership. The questions raised in the article suggest that the fund may not be able to guarantee that they have the gold.
Imagine when it's time to cash out and not enough gold is left. Similar to our current 1% fractional reserve banking system that was founded on the principle of a 10% fractional reserve.....NICE!
The ETF's stated purpose is to track the price of gold. That's it. Basically a futures contract or derivative. The author also hints at the suggestion that with the rapidity that this fund was brought to market that it just might be a trojan horse initiated by the COT or gold cartel interests (central bankers and company). What better way to help control the price of gold than manipulating another paper market, just as they have done with gold futures for the past decade. Maybe a last gasp by the COT to reign in the price of gold.
Interesting reading.
roadrunner
0
Comments
For my money, if I were speculating on the short or intermediate term move of the price of bullion, I would probably do it with the ETF or MS-63/64 Saints. The ETF is the most convenient way, while the Saints give you some leverage. The issue of physical posession of gold, to me, is a longer term issue, with different risks, rewards, and implications.
I concur. Saints are just a good as being in a gold fund but you have physical possession and anonymity. The saints have far more leverage in the up move. But in the long term, up and down moves included, they should outperform such a fund.
I can still remember buying some 64 Saints in 1990 for $1000 after they seemed "reasonable" following a drop from the $1500-2000 range.
Kitco often runs anti-gold articles too on their site. Cliff Droke is one of the pro-stock crowd that is always trumpeting a stock market or dollar bull run just when things look the bleakest (like now). Contrarian web site views are always sobering.
roadrunner