GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Monday, September 24, 2012

Investing in Physical Gold rather than ETF

Reducing the Risks of Investing in Physical Gold : Gold Bullion International CEO Savneet Singh on the benefits of investing in physical gold rather than an ETF.

ETF or Exchange-Traded Fund. By attracting those looking to invest in nontraditional assets and sectors, the global ETF market has inflated to more than a trillion dollars in assets over the past few years...some put that number now at about 2 trillion dollars. "Gold held in the Trust's unallocated gold account and any Authorized Participant's unallocated gold account will not be segregated from the Custodian's assets. If the Custodian becomes insolvent, its assets may not be adequate to satisfy a claim by the Trust or any Authorized Participant." So if the custodian runs into trouble, it may not be able to make good on your claim. If anything, it should reinforce the idea that you should buy physical gold/silver bullion or trade with an ETF that trades only in fully-allocated, good-delivery gold/silver. I would recommend buying physical and knowing exactly where you can sell it in in your area for fair price when the time comes to cash out.

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