“Much of the gold sold of late has been a paper promise. If you don’t have the gold in hand, you may have nothing but an empty promise.”
EXACTLY!....the only way to own is physical gold/silver...why accept a piece of paper from some guy you never met saying gold you’ve never seen is ‘stored’ some place you’ve never been?
Gold and silver ETFs are big paper promises. I would only deal with them short term. You hear of John Paulson who made 4.3 billion betting on areal estate implosion. He got into gold in a big way via the gold ETF. Then he had second thoughts and said to that ETF, “I want my gold holdings in verifiable physical bars held in a segregated vault”
The ETF accommodated him because he is a big shot who brought them good publicity. Paulson has a few hundred million in gold probably more. Some may be his hedge fund holdings.
FROM MAY 2009——>>>
Paulson & Co., the hedge-fund firm run by billionaire John Paulson, increased its investment in gold and gold-mining shares in the first quarter, according to a regulatory filing.
As of the end of the first quarter, Paulson was the largest holder of SPDR Gold Trust, an investment fund that buys gold bullion. The New York-based firm owned 8.7 percent of the fund, valued at $2.8 billion as of March 31, according to a filing with the U.S. Securities and Exchange Commission.
That position was established as a hedge, the company said in a statement, because its funds have a share class that is denominated in gold rather than in dollars or euros.