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2011 GOLD high $1,500.00, SILVER high $24.00
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<p>[QUOTE="medoraman, post: 1062775, member: 26302"]Desert knew where I was going with my last comment, but for everyone else be wary of ETF's trading in commodities of less valuable metals. Physical storage starts to be a larger and larger drag on profits versus market prices the cheaper the commodity is per pound. That is the problem with the oil ETF's right now. It can be sizable, oil is up as a commodity but down as an ETF because of this problem. Copper would have less ETF returns than gold or silver, (as a percent of market returns), but something like aluminum even less. ETF's are a decent investment vehicle, probably more efficient than physical possession, but are in no way perfect. This has always been the major problem in speculating in commodities, these inefficiencies. This is another reason gold is preferred over most other commodities, its high value minimizes these inefficiencies. </p><p><br /></p><p>Btw, pretty fun comparison JeffB. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" /></p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1062775, member: 26302"]Desert knew where I was going with my last comment, but for everyone else be wary of ETF's trading in commodities of less valuable metals. Physical storage starts to be a larger and larger drag on profits versus market prices the cheaper the commodity is per pound. That is the problem with the oil ETF's right now. It can be sizable, oil is up as a commodity but down as an ETF because of this problem. Copper would have less ETF returns than gold or silver, (as a percent of market returns), but something like aluminum even less. ETF's are a decent investment vehicle, probably more efficient than physical possession, but are in no way perfect. This has always been the major problem in speculating in commodities, these inefficiencies. This is another reason gold is preferred over most other commodities, its high value minimizes these inefficiencies. Btw, pretty fun comparison JeffB. :) Chris[/QUOTE]
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