You aren’t using your head. All that eats into your profit. Buy paper and there’s nothing to eat into your profit.
Yes, but you must trust in the paper...and that defeats the entire idea of buying precious metals.
I've been wanting to buy physical gold and silver for some time. But from whom? What dealers? How do you know what they're selling you is even real?
Plus there's the transaction cost. I'm not talking about today's transaction cost, but if you're buying physical to protect yourself against a dollar collapse, and TSHTF, can you imagine the black-market transaction cost after Fedzilla confiscates precious metals and outlaws their ownership, as in the 1930s?
How much to convert my illicit silver coins into the 15,000 Bernankes I'll need to buy a loaf of bread at Safeway? And what kind of neighborhoods will I have to go to to convert my coins into Bernankes? And how many armed friends will have to accompany me to get safely into and out of those neighborhoods?
What's the little guy to do? Buy paper shares? Like I said before, the next scandal will probably be like "The Producers" movie -- SLV is oversubscribed by some 30,000%. "Oops! We're awfully sorry about that! We'll send someone to jail and make it all right."
They supposedly audit those London vaults twice a year, but Enron had auditors, too.
All this just because we have a central bank run by lunatics....