bodily Gold and Silver Vs high-priced Metals change Traded Funds ...

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What do we say about investing in physical gold vs. Investing in a gold Etf? We say ?Ain?t nothin? like the real thing, man!? Of the four ways to invest in costly metals today, the one that, to us, genuinely makes the most sense is investing directly in the physical asset. This can be achieved by purchasing physical gold bullion coins and bars or rare gold coins and junk silver bags.

There are three other primary ways to get complex with costly metals, the first is a silver or gold Etf (exchange traded fund), the second is to invest in shares of stock in costly metals mining companies, and the third is to invest in costly metals futures contracts. We?ll be brief and clear on two of these three choices. First, we don?t advise futures investing to whatever who has not already proven themselves a scholar futures investor?and that applies to most people. Futures contracts can give amazingly high returns in an astonishingly short duration of time, but the risks of loss are equally high. Avoid gold futures. Second, if you invest in a mining company stock, you are not investing in physical gold and silver?you are still investing in paper. You may assume that gold and silver will be rising so much that the companies? stocks will inevitably rise with it, but despite the very sharp rise in the prices of gold and silver over the last decade, many of the gains in mining company stocks have underperformed the physical asset. With stocks, not only are you investing in a mining company, but also the company?s management, equipment, mine assets, and so forth. The lowest line is that it?s not physical gold, nor physical silver.

But with a gold Etf, aren?t you investing in physical gold? No, you?re still not.

A gold Etf is an venture in a derivative of the value of an ounce of gold. Quite typically, a share in a gold Etf equals the store value of 1/10th of one ounce of physical gold. The fund is underpinned by real gold bullion-but that?s not what you are buying. And for you as an individual investor (as opposed to, say, an institutional money manager), that?s not genuinely that good. And here?s why: Take a gander at this quote within the 10-K filing by the World Gold Council for the Gld Etf. It says ?Each superior Share will record a proportional interest in the gold held by the Trust. As the Trust will not generate any wage and as the Trust will commonly sell gold over time to pay for its ongoing expenses, the whole of gold represented by each Share will moderately decline over time. This is true even if additional Shares are issued in change for additional deposits of gold into the Trust, as the whole of gold required to generate Shares will proportionately reflect the whole of gold represented by the Shares superior at the time of creation. Assuming a constant gold price, the trading price of the Shares is expected to moderately decline relative to the price of gold as the whole of gold represented by the Shares moderately declines??

You see?physical gold and silver always have intrinsic, real value. But a gold Etf will likely lose money unless the store value for gold goes up and up and up. It may be expected to do that right now, but can you predict the exact timeline? When will be the right time to redeem your shares? If you buy physical gold and silver coins, you?ll never need to worry about that, because the costly metals themselves will always have great value relative to how healthy all other financial venture instruments are at any time: stocks; bonds, futures contracts, and any given currency.

So once again, the lowest line is: own physical gold and silver. Everything else is, to one degree or another, mere speculation. And while venture can make you even more money than owning costly metals coins, it can also cause you to lose your shirt. You can?t lose with physical costly metals.

Tags: bodily, bodily Metals, change, change Traded, highpriced, Metals, Silver, Traded

Source: http://www.ruk-yim.com/bodily-gold-and-silver-vs-high-priced-metals-change-traded-funds-etf

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