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Humm, shift from ETFs to Physical?

tneigtneig Posts: 1,505 ✭✭✭
in Precious Metals
What ya think, derryB?
Funds and investors shifting from ETF's to physical gold..

Article Linky
COA

Comments

  • derrybderryb Posts: 36,790 ✭✭✭✭✭
    The song is getting closer to the end in the game of musical chairs - investors are circling the chairs. We all know that a lot more paper has been sold than there is metal. The fear of being one of the many without a chair when the music stops is growing, especially in the wake of MF Global type episodes where the individual has no friends in the courts or in the regulatory agencies. Paper is a gamble, but pays generously for those that know when to bail. I'm still in. learned a lot from the last time I didn't bail when my gut told me I should.

    counterparty risk is a valid concern with any type paper, especially paper metal.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • NumbersUsacomNumbersUsacom Posts: 1,457 ✭
    Good article glad you posted it with a link.

    Is there a place/source that provides credible information regarding this shift. ie. confirmed data compiled by a credible organization ?

    DerryB, RoadRunner,Tneig, Cohodk, ProofCollection, Jmski52, PerryHall and all others, anyone know of a source?
    NumbersUsa, FairUs, Alipac, CapsWeb, and TeamAmericaPac
  • derrybderryb Posts: 36,790 ✭✭✭✭✭
    ETFs SLV and GLD are probably the largest paper metal ETFs. As long as they end the day up in price there really is no shift because anybody vacating positions is having other ETF buyers take the position. Ultimately price direction of the ETF indicates what traders are doing with the ETF. Are all of those leaving the ETF buying physical? Most likely not, many are taking profits.

    The only true indicator I can think of for a massive shift would be increased premiums on physical while at the same time the ETFs experienced a stampede for the door. These two ETFs are now large enough to have a very notable affect on metal prices. Adding (or removing) a large postion from them for reasons other than fundamental reasons (i.e. Buffet needs cash for another venture) could easily result in a major positive (or negative) affect on metal prices without the fundamentals having changed at all.

    Question is: Are SLV and GLD the new Hunt Brothers. image

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • Timbuk3Timbuk3 Posts: 11,658 ✭✭✭✭✭
    I've always purchased physical
    gold and silver !!!
    Timbuk3
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    I have stayed with physical.... just do not understand the intricacies of the paper market. Cheers, RickO
  • Yukoncornelius1Yukoncornelius1 Posts: 654 ✭
    I will never buy metals in paper form, I like to be able to touch what I invest in and know I have it under my control.
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