Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: CaliforniaCon
I can see not wanting to put it into stocks. I recently ran into a group of ETF’s that are commodity based rather then stock.
An example is GLD, basically its a fund that owns gold, and you get to buy a chunk of it and can buy and sell during normal hours.
I have pulled cash out of the bank, got an ameritrade account, and purchased mainly GLD with the money.
I have done well with it, and expect it to continue doing well as long as the dollar continues to drop and central banks continue to purchase it.
Gold is traded almost around the clock, so I have had to wake up to a drop in value.
This is not advice, mearly what I have done to keep my spare change around.
51 posted on 11/25/2009 1:07:58 PM PST by Colvin (Harry Reid is a sap sucking idiot.)
[ Post Reply | Private Reply | To 46 | View Replies ]


To: Colvin
Yes, and the number of shares issued for GLD and other gold etfs far exceeds the amount of actual physical gold reserves held by COMEX, so the entire PM etf thing is just another Wall Street, three card Monty screw job. Trade PM etfs all you want, but WTSHTF, don't think you'll be able to redeem them or use them to demand delivery of physical gold; you'll be left holding worthless paper.

Google: Comex. gold price manipulation.

http://www.fgmr.com/where-is-the-etfs-gold.html

Long read, but here's the money quote:

"People who might have otherwise bought physical gold coins or bars, but wanted the same thing with more convenience, could be misled into thinking that they are buying physical gold by investing in the shares of GLD. But given GLD's loose custodial controls, there is no certainty that the investor is actually buying gold bullion in the form of an exchange-traded security. They mayinstead only be buying paper (i.e., a promise to deliver physical metal, rather than the metal itself) because there is no possibility by independent auditing or other means to substantiate that the gold supposedly owned by GLD and stored in the BoE and other vaults (other than HSBC's vault) really exists. This mechanism thus provides the central banks managing gold's price with a tool to divert into paper promises the money coming from investors who otherwise think they are buying physical metal, thereby enabling these central banks to relieve the upward pressure we have been seeing on the gold price. Therefore, if you are intending to buy physical gold bullion, do not buy GLD.
57 posted on 11/25/2009 2:22:30 PM PST by Mister Muggles (Seattle: a city full of liberal men with vaginas.)
[ Post Reply | Private Reply | To 51 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson