Bought on the Dip

Thats rather arrogant and naive to say everything in a post is not true.
My statements are common knowledge among most precious metal investors and I thought I would share them with those looking to safely invest in Gold and Silver.

For those with an open mind visit the link below and make your own conclusions.

http://www.marketoracle.co.uk/Article9030.html

 

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It isn't arrogant or naive. None of it is sourced with even a tiny bit of evidence. You linked an article written by someone called Eric deCarbonnel who quotes someone called Michael Pennington who "believes" the ETFs are scams without providing one single shred of evidence. Do you even know who either of these people are? You should at least require someone to provide evidence or analysis to support their opinions before you choose to believe them. So it becomes a matter of whether you want to believe the major financial institutions and regulatory agencies, or some character named Michael Pennington. In the case of Eric deCarbonnel, this is the same guy who is looking for investors for his venture into Russian agriculture as protection against the next financial meltdown. If you think highly of him, you may want to send him your money. YOU can believe who you want. I just want others to know you posted complete garbage.

Edit: Here is the GLD gold bar inventory list in case you want to do some real analysis. http://www.spdrgoldshares.com/sites/us/gold_bar_list/ It also has the audit report which your source claims was not done.

 

OK.

Basic critical thinking: is it sourced? Is it relevant? Is it consistent with other information?

Sources are a mixed bag.

It's got prize non sequiturs like "GLD's gold is located in London, where most the world's gold leasing occurs. ".

It's inconsistent with other information, for example claiming that the gold has never been audited when Deloitte Touche audited the entire financial status, a fact available online in the 10-K.

Some points about storage and acquisition that I'll keep an eye out for more information about, but for which the quality of that article doesn't justify investing my time.

Nor does even that article support a flat statement that GLD is issuing shares representing 100 ounces of gold for every ounce they have in storage.

People selling scare stories should get the same skepticism and review as people selling gold investments. Your brain is more important than your safe: apply due diligence before putting things into it.

Now, refocus the attack to saying that GLD doesn't meet all the needs of the sort of people who store physical at home, and you're on solid ground. If the stock exchanges and/or the banking system is closed or collapsed, GLD shares won't help you. But that's not the same as an accusation of fraud based on so little foundation it wouldn't get an indictment.

(Better sources include Bron Suchecki at goldchat.blogspot.com, he lists his credentials and background.)

 

I'm way below that . My gold was aquired at about $400 and silver at about $4 in 98 and 99. Now you do have to account for the time value of money...

 

I never mentioned once GLD was dishonest,I have no doubt they have allocated gold to back up there funds.It's some of the other Gold ETF's which may not be the best way to invest in Gold.
To simplify The ETF Daily news can explain it better than I can.
The ETF is vulnerable and so are you.Because you are not actually investing in any tangible gold bars, the system is vulnerable to economic collapse. If a rough patch hits the economy, your ETF is likely to suffer. Since you do not have a tangible product, you will be left holding the economic damage and nothing else.
The Gold ETFs put you at a high risk of fraud.
Simply put, with no required bars of gold to invest in, you are putting your trust that any gold exists into accountants and other individuals whose solitary goal is to make a profit off of you. Some of these individuals might be worthy of your trust, but many are not.
Without any tangible product, it becomes very difficult to separate which of your associates trying to sell you Gold ETFs belong to the trustworthy category, and which belong to the fraudulent category.

 

Rush, you indicated that the ETFs only held 1 ounce of gold for every 100 they claimed. Then you cited an unreliable source speaking about GLD to back your claims. I don't really care what you believe. I just want to protect others who might have read your post. Every investor who has performed even a tiny amount of due diligence knows that GLD is not an investment in gold. It is an investment that is intended to track the price of gold. And in a true economic crisis where gold becomes highly desirable, GLD could just as easily sell at a premium to the NAV as it could sell at a discount because the owners of physical gold will be inclined to pull their bids. Anybody who can't get that far should not be handling their own investments.

 

So many people (including me) come to CoinTalk to learn.

I appreciate the efforts many make (Cloud for one) to protect those seeking knowledge from misleading, fake and made up data.

It is fun to talk conspiracy theories, secret pacts and empty vaults but these have to have a basis in reality or it is call "Young Adult Fiction".

The biggest danger of inaccurate/made up/regurgitated stories and people who just "KNOW:rolling:THINGS" with no basis in fact, is the damage it can do to those of us trying to get the facts.

Share your ideas and theories but be honest and say that they are "your ideas and theories". Heck, they could all be true but you don't need to inflate their credibility to make you seem smart.

Kiss your ignorance on the mouth.

 

For some buying a dip is not possible. You can only invest when you have funds. Cost average up and down over many years. Bullion is real money but some of the coins produced 2006-2009 made those that saw what was happening some nice sets to put away for the future.
I believe your need both bullion and collectible coin in your portfolio

Pep

 

So who in the financial markets are a reliable source?
Friehling and Horowitz accountants for Bernie Madoff?
or maybe Arthur Anderson the accountants for Enron.Yeah,we were all suppose to believe these liars and the frauds they worked for.
And John Paulson formerly involved with Goldman-Sachs,controlling 8% of GLD.I believe the ones who don't profit from there statements before I believe the ones profiting on the backs of naive investors.

 

There are few reliable sources. For the most part you have to do your own work. But when someone makes a living by blogging and/or selling advice and not by actively investing their own money with a public track record, you can safely assume their advice is worth what you pay for it. If your investment strategy is to wait for someone else to tell you what to do, you will be disappointed. You may well decide to avoid GLD and other gold ETFs, but it should NEVER be for the reason that some blogger wrote an interesting article about how the entire fund is a fraud without providing a shred of evidence, and it doesn't mean that all ETFs are fraudulent.