I agree. I gave my wife a US Gold Eagle for Christmas. That's all I could afford.
We used to have money like this, when paper money meant more:
Posted on 02/19/2009 6:27:00 PM PST by Publius
There may be many things to hope for in the oncoming Obama administration. Investing in the bullion ETF, GLD, is not one of them.
1. I'll start with the opening sentence of the gold ETF itself and work outwards to you. The opening sentence of the November 2004 gold ETF prospectus said, "This ETF is intended to track the performance of the price of gold." Note that it doesn't say it will own gold, or anything so prosaic. This Exchange Traded Fund that promises easy gold ownership for America is only going to track it. You know, like your cat tracking a crow in the back yard. And if GLD or your cat never quite gets there, well, it was an interesting exercise.
A careful reading of the first sentence should tell you that this is a document written by lawyers, and it is intended to be read by other lawyers who might be thinking of suing the guys represented by the first group of lawyers. The opening sentence is nothing if not defensible.
(Excerpt) Read more at seekingalpha.com ...
later
“The point here is that he thinks (among other things) that the gold ETF might not actually be holding any gold at all.”
+++++++++++
There is about one of these a week posted at Seeking Alpha. they really know very little about it.
He starts out saying that the documents have Lawyer Talk in them. Would you want them written by first graders? Who does he believe should have written the trust agreements?
Then he complains that the price of GLD does not now track physical gold exactly. It cannot. They have charged small fees for the several years since it was started. Gold generates no revenues to pay those fees so the asset must be “clipped” a bit every year to cover that cost.
It is not like a Madoff deal or hedge fund deal promising high returns, or any return at all actually. They don’t promise to make your gold multiply with interest. They just promise to hold it, for a fee, in the same way the cleaners store your winter clothes during the summer. They both make money doing that.
Then the guy recommends CEF. That is a closed end fund selling today at a premium of about 11%. You get 11% less asset than you pay for, instantly. CEF also charges a management fee.
It would not talk long around here to round everybody up. You cannot confide in neighbors they would rat you out for a share of your stash. And a Lone wolf dont survive long if he is found.
Not in my rural area. We're bristling with guns here. Our neighborhood watch could transform itself into a 24/7 armed force in hours if not minutes. Looters here had better be very stealthy.
The county sheriff's response time is probably close to thirty minutes. We would be dialing 9-1-1 AFTER arming ourselves, not before.
I can’t speak for others but I’ll die fighting before I’ll let this happen to me.
Are you sure you will be able to get out if the price goes down?
How do you know they’re not keeping their gold in Bernie Madoff’s imaginary vault?
the typical brown shirt would be an ignorant city dweller.
with more ideogly and guts than sense.
They would be easy targets to defend from since they would all be holding their pistols sideways gang banga style,
Remeber, The One wants them as well armed and trained as our military.
I agree. I gave my wife a US Gold Eagle for Christmas. That's all I could afford.
We used to have money like this, when paper money meant more:
On the good side for those who want real physical gold
I check APMEX from time to time and premiums on gold bulliuon coins is down and availability is up compared to six months ago
GOLD EAGLES now have about half the 10% premium of 6 months ago—
http://www.apmex.com/Category/290/Gold_Eagles___1_oz_2009__Prior.aspx
Plus were often unavailbale back then
That's what Olivia Newton John says too.
Remember her song "Let's Get Physical"
She was way ahead of her time
Agreed. Paper gold is no good.
A good summary.
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