Gold ETF (GLD)

[GoldNugget]

James Turk has written a new article called
The Paper Game, that looks at the popular Gold ETF investment vehicle.

If you are considering investing in a gold etf or silver etf you need to read this article and inform yourself of what it is you are investing in when you invest in a gold etf.

In conclusion, it is clear that with GLD you own exposure to the gold price. You don't actually own physical gold for several reasons:

1. GLD does not prove the gold exists with independent third party audits.

2. The same gold in GLD may be owned by two people because of short selling.

3. Even if GLD were in reality backed by gold, there are too many parties between you and the gold to claim that you really own it. So while you may have “access” to the gold price through GLD, you do not have access to any physical metal that it may be holding.

Physical gold is the bedrock asset in your portfolio. Do not take risks with it. Own it, and keep it safe, just in case there comes a day when you may need it.