EFT Spot versus Physical

Discussion in 'General Precious Metals Discussion' started by wooferdog, Dec 21, 2010.

  1. wooferdog

    wooferdog New Member

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  2. projack

    projack Well-Known Member Silver Stacker

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    Please read the prospectus carefully before investing.
    Here are some of the highlights from the prospectus to be aware;

    Although Shares of the Trust may be bought and sold on the exchange through any brokerage account, they are not individually redeemable directly from the Trust.


    Gold Trust are not investment companies registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Trusts are not subject to the same regulatory requirements as mutual funds.

    Also, should the speculative community take a negative view towards bullion, it could cause a decline in world gold, silver, palladium and platinum prices, negatively impacting the price of the Shares. (Custodian JP Morgan Chase Bank).
    There is a risk that part or all of the Trust's gold, silver, palladium and platinum could be lost, damaged or stolen. Failure by the Custodian or Sub-Custodian to exercise due care in the safekeeping of the precious metal held by the Trusts could result in a loss to the Trusts.


    Shares in the Trusts are not FDIC insured, may lose value and have no bank guarantee.
     

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