Physical Gold or Exchange Traded Fund
I’ve always said that ETFs are a great way to speculate on the price of gold… but without pointing the finger at any gold ETFs in particular, of course they are open to manipulation. It is hardly surprising that shares in a company don’t have the exact same price as the physical metal.
Even if all the physical gold is there to back the digital promises, what if there’s another 9/11… or just a tech glitch as happened on the London markets last year, and trading on the markets is suspended? Then how are you going to get your physical bullion?
The same applies to Perth Mint. If I need my gold in a hurry and air travel is suspended, I don’t want to be waiting for DHL to get my certificates to Australia to cash in.
The point for me of investing in gold is that it’s a hard asset. I don’t have to rely on brokerage accounts or Wall Street to cash it in. I’m happy to keep spare cash in the likes of GLD, but it’s pure speculation, like going to the casino. It is not a replacement for physical gold bullion.
Mother Lode gold nuggets
EBay Gold and Silver Arbitrage Central
silver - natural silver
I think the most telling bullion market is eBay. We can see millions of listings and free-market selling prices (not short-selling prices). I was buying rolls of old silver half dollars about a year ago and was paying no more than $110 a pop including shipping. This morning they are going for $145, likely $5 or so less than days prior. My point is that premiums are over 10%, while they were often zero and generally around 5% a year ago, when silver was shooting from $12 to $16. I was even able to buy a few piles of 35% silver WW2 nickels last year on eBay for about 30 cents a coin. Read more 
Should You Own Silver
silver dollar
Silver’s definitely one of the best precious metals to own at the moment. However, I’d caution anyone trying to go a quick buck and trying for the “Short Squeeze”. Never underestimate the Government’s ability to manipulate the market. They may not have infinite amounts of silver, but they can print up infinite amounts of silver certificates (or options, as the case may be).
Silver should be a store of value against inflation, but it shouldn’t be part of a get-rich-quick scheme.
Morgan Silver Dollars
Buying Gold Through An Exchange Traded Fund
crystalline gold nugget
GLD share owners own a fractional, undivided interest in the trust’s assets which are 100% physical gold, except for occasional small amounts of cash.
So, one could think of purchasing GLD the same as buying a share of Verizon……you don’t own a certain, allocated cell phone. Read more
Spot Gold Price Falls to 2 Week Low
Arizona gold nugget
Speculation that commodities demand will be curbed by regulations arising from the lawsuit against Goldman Sachs caused gold prices to fall this morning. This morning’s gold drop is a follow-up to the large decline seen in Friday’s trading.
Gold futures for June delivery fell $5.40, or 0.5 percent, to $1,131.50 an ounce at 8:20 a.m. on the Comex in New York. Prices earlier dropped to $1,124.30, the lowest level since April 6. Bullion for immediate delivery declined 0.6 percent to $1,131. Read more
