And good value will lead to good buying. If we start to get bargain hunters taking this opportunity up, then at some point the traders will start having to close their short positions. This increases the price, and soon the traders could start a stampede as they all try to get out. This could lead to a big spike in the price, blowing up months' worth of profits in minutes. This will happen at some point, and gold stocks will go ballistic as they get back to where they should be. Closing this trade would also mean selling the gold ETF. It's amazing to think that the largest gold ETF in the world now holds more gold than most central banks. Or so they say... Apparently, the US Commodity Futures Trading Commission, with the Gold Anti-Trust Action Committee, reckon there is now one hundred times more gold in ETFs in the worldthan physically exists above ground. ETFs are convenient. They are the cheapest way to buy and sell precious metals and they have their role in the market. They let you buy and sell metal via Etrade or Commsec quicker than you can say 'Goldfinger'. At the other end of the spectrum, buying physical gold or silver metal is more expensive because dealers charge a premium. You then have the cost of delivery, storage and insurance. Dealers also take their cut when you sell. So why bother with bullion? For one reason to avoid 'counterparty risk'. This is the risk of trusting another party with your investment. When you buy an ETF, the metal you buy is generally not held by the ETF provider, but by a large global bank like HSBC or Morgan Stanley. Thankfully buying gold and silver yourself is easy in Australia. I took a look at how to do that in this month's Diggers and Drillers, so readers had a full list of ways to buy and store gold themselves. This included a few ways to get bullion that you may not have thought of. But you might be able to turn up with a bit of research. Hi can Stackers give me some thoughts on this statement in todays reckonining please.
The 100x volume is probably a mis-quote from that famous quote about there being 100x the amount sold each day than exists, which is technically possible as the same gold ounce could get sold 100x. Other than that, the article is fine. Very simple, not sure what part you want dissected
Apparently, the US Commodity Futures Trading Commission, with the Gold Anti-Trust Action Committee, reckon there is now one hundred times more gold in ETFs in the worldthan physically exists above ground. This says it all! Buy physical and put it under your bed - anything written on paper may soon not be worth more than the paper it is written on!
Not that I'm disputing the fact (physical = winner), but even in fiat currencies they do this. The trade volumes are larger than the existing stuff on the ground, take a look at the forex markets and you will see volumes which are heaps higher than the whole money supply. Reason being of course, what grinners said.
VANBAC, was this free or part of a paid subscription from DR? I'm just wondering if Dan Denning from Daily Reckoning is STILL trying to test the market for his blogg. I unsubscribed when he started pushing that and haven't been back since.
Hi Clawhammer , No just the daily reckoning which comes every day . Just a subscription not paid for. They are I believe going after some people who have used and passed on the paid subscription to other entities of the ''DIGGERS and DRILLERS"" Obviously dont like giving something for nothing. Still I can understand that. To you other guys No I was just interested in your thoughts as this is the first time I have seen the D/R actually recommending physical purchase to my knowledge above paper. cheers.
Hi VANGBAC, I get the DR email everyday as you do, and to my knowledge they have always recommended buying physical, as they've always warned that the fiat system is going down the tube.. They are always trying to sell you every subscription under the sun as well, but I kinda like em, good stuff about Aussie property and world markets in general..
Ive been reading for a few years now and it is good stuff. I do not think they are pushy or trying hard to sell anything at all. They mention their subscriptions sometimes but they are a business. Far from pushy. and the stuff from Bill Bonner is not pushy ever.
Clawhammer, I have been reading for a few months and subscribed to D&D. Not bad value for the advice given and you dont have to subscribe to anything if you dont want to. Why should anyone give away their hard earned knowledge for nothing! I think the problem is that everyone expects everything on the internet to be free, if you were to see a financial adviser I think it would cost you a lot more!
