tag:blogger.com,1999:blog-19850588.post113694996687866668..comments2024-01-02T09:12:47.386-05:00Comments on Buy Gold: Gold ETFUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-19850588.post-47168954683178417222009-05-03T14:53:00.000-05:002009-05-03T14:53:00.000-05:00In this economic climate I think buying gold, whet...In this economic climate I think buying gold, whether bars or coins is safer rather than GLD. Have something in your hand the stuff that when you drop it on your toes it hurts!!!!! Be in control of your assets at this present time, until things settle down.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19850588.post-24936695997113080932008-09-17T21:53:00.000-05:002008-09-17T21:53:00.000-05:00ETF’s like GLD are good for short term speculation...ETF’s like GLD are good for short term speculation. And that’s about it. For example, Monday I purchased $10,000 of GLD. My broker told me I was an idiot and that “There is lots of gold and that it’s overrated.” Today I’m VERY happy; I wanted to call him all day and tell him what a loser he is…<BR/><BR/>But GLD isn’t good for the long term. For that, just get the real thing.b4freedomhttps://www.blogger.com/profile/16784583335553807946noreply@blogger.comtag:blogger.com,1999:blog-19850588.post-13390911428222166802007-09-30T17:55:00.000-05:002007-09-30T17:55:00.000-05:00This was posted at lemetropolecafe.com:I was told ...This was posted at lemetropolecafe.com:<BR/><BR/>I was told by a friend that he felt much better owning GLD than physical gold because there were no storage fees, it was more liquid than physical gold in his possession and he did not want it to be stolen. I then asked him WHY he held any gold at all and his answer was "I keep 5% in gold in case of catastrophic problems with the monetary system."<BR/><BR/>After I finished laughing I pointed out the following risks associated with investment in GLD and not physical Gold:<BR/><BR/>- GLD is held and controlled by banking institutions that will likely be insolvent in the event of a monetary system failure....RESULT: NO GOLD<BR/><BR/>- GLD can be liquidated (available cash only) if the Sponsor (World Gold Trust Services) resigns or is unable to perform its duties or becomes bankrupt or insolvent....RESULT: NO GOLD<BR/><BR/>- GLD can be liquidated (available cash only) if the Trustee (Bank of New York) resigns or is removed ...RESULT: NO GOLD<BR/><BR/>- GLD can be liquidated (available cash only) if DTC, the securities depository for the Shares, is unwilling or unable to perform its functions...RESULT: NO GOLD<BR/><BR/>- GLD can be liquidated (available cash only) if the Shares are de-listed from the NYSE ...RESULT: NO GOLD<BR/><BR/>- GLD can be liquidated (available cash only) if the NAV of the Trust remains less than $50 million for a period of 50 consecutive business days ...RESULT: NO GOLD<BR/><BR/>- GLD can be liquidated (available cash only) if the Custodian (HSBC) resigns ...RESULT: NO GOLD<BR/><BR/>- GLD can be liquidated (available cash only) if the authorized Participants (JPM, Goldman Sachs, Etc.) redeem the trusts assets ...RESULT: NO GOLD<BR/><BR/>- GLD can be liquidated (available cash only) if the Trust fails to qualify for treatment, or ceases to be treated, for US federal income tax purposes, as a grantor trust ...RESULT: NO GOLD<BR/><BR/>- GLD can be liquidated (available cash only) if the maximum period for which the Trust is allowed to exist under New York law ends ...RESULT: NO GOLD<BR/><BR/>- GLD shares are "supposedly" held by your broker so you take the brokers default credit risk....RESULT: NO GOLD<BR/><BR/>Add them all up and I'd say GLD is a VERY risky asset to own in the case of a monetary crisis.<BR/><BR/>He should just buy physical and hide it in a better place!<BR/><BR/>All the best.<BR/>Bix<BR/>PS - For SLV you can pile on about 10 more risk factors!Anonymousnoreply@blogger.com