Buying Gold Through An Exchange Traded Fund

by oakley711

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.

But the asset behind the GLD share is physical, allocated gold. You are not “part of a massive Ponzi scheme that has gold leveraged 100-1″ and the GLD prospectus doesn’t allow the trust to hold paper, or futures, or forwards, or gold covered chocolate bars.