Gold ETF's = Physical Gold - According to MSM

[gunDriller]

Just imagine if all that money that goes into Gold & Silver ETF's went into real physical precious metals instead.

since the ratio of paper to physical is roughly 100:1, and price increases tend to attract additional buying, it's hard not to conclude that the loss of trust in Paper PM's would send the price of physical out of sight.

But, as long as we have articles like this, where the "safe-haven trade" is portrayed as investors buying Gold ETF's ... God Help Us.

http://finance.yahoo.com/news/gold-etfs-eurozone-debt-crisis-120007794.html

"Investors are already hedging for the worst ahead of the European summit held this Thursday and Friday. Interestingly, gold exchange traded funds are getting back some of their luster as physical gold attracts another round of safe-haven plays.

On Monday, gold ETFs like the SPDR Gold Shares Fund (GLD - News) and the iShares Gold Trust (IAU - News) were both slightly higher after Cyprus became the fifth E.U. member to ask for a bailout due to Greek debt exposure, Spain officially asked for a bailout as a result of bad debt and Germany spoke against E.U. bonds, writes Christian Magoon at GoldETFs.com."

SPDR is not the Sprott Physical Gold Trust. Sprott Gold = 'PHYS'.

http://finance.yahoo.com/q?s=PHYS&ql=1


I wonder how many of the investors who buy the precious metal ETF's actually think they're getting physical metal. I think most of them know that they're just buying an index which is tied to the paper price, without knowing a whole lot about the activities of the Cartel.

Did a memo go out to the financial media telling them to portray Gold ETF's as physical metal ?

Why doesn't some diligent reporter call up Hannes Tulving if they want to really want to know about "physical gold" ?

I wonder how many newb investors read articles like this and think, "Safe haven, yeah, got to buy some GLD" ?

[chad]

my uncle is a doctor of 38 years and a smart guy. that being said, he bought slv and is ABSOLUTELY convinced (via his financial advisor) that he has serial numbered bars with his name on them somewhere in a vault.

i showed him the slv prospectus where it flat out says they can pay you in whatever, not silver, and he refused to believe me.

the power of financial advisors is strong.

[gunDriller]

another 'expert' sharing their 'expertise' on Au ~

"Gold is on the brink of a "violent downturn" and could even fall as low as $700 an ounce as the risk of deflation in developed economies grows and technical pointers turn bearish, one expert tells CNBC.

"Technical levels show us when the trouble is coming. Gold struggled at $1,700 and then at $1,600. If it breaks through the next key level of $1,500, which could be approaching soon, investors would start panicking and selling hard," Yoni Jacobs, Chief Investment Strategist at Chart Prophet Capital said on Thursday."


Yoni Jacobs - that a Jewish name ?

http://finance.yahoo.com/news/gold-edge-violent-downturn-110821349.html

""It appears that the market has decided on gold's fate. And it's not looking pretty. It looks like gold is about to see prices collapse and is on its way to $700," Jacobs added.

The two main triggers for a large selloff in the precious metal could be a further slowdown in global economic growth - which would likely result in deflation - or inaction by leading central banks such as the Federal Reserve or the European Central Bank. (Related: Largest Holders of Gold)

"Gold is a commodity, just like everything else, and if the world economy goes into a recession or if we see slowdown, gold is not safe from a commodities slowdown," Jacobs said."


why does CNBC pay "experts" who are too stupid to mention that the commodity they are slamming was bought at a rate, last year, that is double annual production ?

maybe it has something to do with that Scottrade commercial on the home page of CNBC ...

[madfranks]

I wonder how many of the investors who buy the precious metal ETF's actually think they're getting physical metal.


A colleague of mine once thought his gold ETFs were physical, until I told him they weren't. He did the research and came back to me surprised that I was right. Apparently it's pretty common for small time investors to think they're actually buying real gold with their ETFs.

[gunDriller]

A colleague of mine once thought his gold ETFs were physical, until I told him they weren't. He did the research and came back to me surprised that I was right. Apparently it's pretty common for small time investors to think they're actually buying real gold with their ETFs.

if they have $160,000 in a gold ETF, or $135,000 in a silver ETF, they have enough to try & take delivery.

and to find out that they'll be getting US $ instead.


maybe we should have an Index that is tied to the Google stock price, but is not Google stock. let people invest in the Google Index. maybe then they'll understand how that takes revenue inflows away from the targeted 'commodity'.

i do not entirely understand why people buy the paper shares. are they afraid of holding physical ?


my brother is an exec with a publicly held real estate company. he has moved around a lot. i could understand it's a hassle to move $1 million in silver bars, yes.

but those are the kind of problems you want to have, no ?

when he moves, there's no investments to move - it's all stocks etc. i guess that's easier for him.

his way of getting exposure to Gold price - buying Barrick.

his way of obtaining food security - buying Monsanto ?!

[Skirnir_]

A friend of mine purchased a silver ETF and did not want to hold physical. Even from the perspective of overall rate of return, physical is preferable just because one could liquidate it for cash or through barter.