Gold And Silver ETFs
Tuesday, February 23rd, 2010Gold and silver ETFs (Exchange Traded Funds) are popular among many “jet set” types of investors, as these electronic shares of gold and silver bullion can be quickly and easily obtained over the Internet, with the assistance of an all-too-eager ETF broker. These investments generally trade at prices that are higher than the cost of the physical gold and silver, which hovers slightly above the current gold and silver spot prices. No actual metal ever reaches the hands of the ETF buyer however, so these investments cannot be used as liquid assets in the event of a market, or banking collapse. Experienced precious metals investors know this, and naturally disregard the option of investing in gold and silver ETFs, by purchasing physical bullion bars and/or coins.
One of the strongest caveats to prospective investors in gold and silver ETFs is that nobody really knows if there is enough physical metal to represent all of the electronic bullion shares that are being sold. Until a proper audit of these ETF companies’
actual gold and silver holdings is conducted, there’s no way to be sure. In the meantime, this web-blogger recommends researching the benefits of owning physical gold and silver bullion for either potential short-term gains, or for opening a government-approved, precious metal IRA.
As always, investors are encouraged to complete their research, and then to contact one of our friendly specialists, who offer institutional discounts on gold and silver bullion to household investors like you.
Shannon King
