Physical Gold and Silver or an ETF?

Physical Gold and Silver or an ETF?


Physical Gold and Silver or an ETF? I’ll get into a conversation with someone and they’ll find out that I’m gold and silver dealer or someone might even call
on the phone and I’ll ask them do you have gold oh yeah I have gold they go
what kind of gold do you have and they go oh I’ve got gld an exchange-traded fund or
an ETF and I go really I go have you ever called them up and tried to get it
and they go no I I don’t know i’m sure i could and they can’t the thing about an
ETF like GLD or for silver SLV is that they’re nothing but a proxy for the
underlying instrument gold or silver they trade like a stock they really are
a stock people get into them and get out of them every day if they’re doing well
they’re in if they’re not doing so well they’re out and fundamentally they’re
nothing but a derivative of physical gold and silver and there’s enough in
the news about derivatives warren buffett had a lot to say about
derivatives if you carefully read the prospectus it’s riddled with holes and
filled with counterparty agreements where one party has to
perform in order for another party to perform and on and on and on for the
prior to be valid now don’t get me wrong there’s a place for them if it’s in a
trading account or in a brokerage account or sometimes even a retirement
account but they are not a substitute for physical metal the two are not the
same the people that want physical metal want to hold it tangibly have it stored
away somewhere have it in the case of emergency or whatever their motivation
the person who has one of the exchange traded funds really wants a
participation in a sector not unlike biomed or energy or any other
manufacturing or something else so that’s really the difference

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