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To: blam
For investors, the simplest way into the metals remains the two large exchange-traded funds (ETFs): The SPDR Gold Trust (NYSE: GLD) and the iShares Silver Trust (NYSE: SLV).

There is a modest amount of slippage between these ETFs and the metals themselves, so their prices are running about 2% behind the metals, but their convenience and liquidity make them the best choice for retail investors.

Certainly ETFs are the simplest way, but these are also much riskier than you yourself being in direct possession of the physical metal.

I doubt that GLD and SLV hold a dollar of gold or a dollar of silver, for each dollar invested.

Some knowledgable folks have suggested that the ratio of held metal to invested dollar is 1:100. If true, these funds are selling what they don't hold.

When the S finally HTF, I'd much rather be holding the physical than a piece of paper.

10 posted on 10/06/2011 1:43:57 PM PDT by bkopto (Obama is merely a symptom of a more profound, systemic disease in American body politic.)
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To: bkopto

“When the S finally HTF, I’d much rather be holding the physical than a piece of paper.”

I’d rather be holding a sandwich and heavy artillery.


12 posted on 10/06/2011 2:03:14 PM PDT by Magic Fingers
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