Gold ETF or Physical Gold?

Discussion in 'Bullion Investing' started by fretboard, May 18, 2020.

  1. fretboard

    fretboard Defender of Old Coinage!

    This video was made sometime in 11/19 before the Corona virus changed everything known to most of us collectors and everyone else as well. Sure it was made to sell physical gold but you could easily find a video that would promote ETF's as well, if you wanted. I don't own any ETF's but I'm not against them at all, I just don't know how they work and I like being able to access my small pile as there's nothing like handling solid gold at all! :D I heard that many gold ETF accounts are being opened as we speak and the reasons are obvious as gold is in the position to reach new highs! Some are predicting crazy prices for gold, idk about all that but it's sure to go up!! So what is your preference?? :D

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  3. QuintupleSovereign

    QuintupleSovereign Well-Known Member

    Physical all the way. Part of the allure of having gold is having physical possession; no counterparty risk. Plus, if the world goes to you know what, I can pack it in a backpack and flee.
  4. Jeffjay

    Jeffjay Well-Known Member

    I don't trust anybody with my precious metals but me.
    GoldFinger1969 and fretboard like this.
  5. Collecting Nut

    Collecting Nut Borderline Hoarder

    I want it in my possession.
  6. Kentucky

    Kentucky Supporter! Supporter

    My Precious...
    QuintupleSovereign likes this.
  7. QuintupleSovereign

    QuintupleSovereign Well-Known Member

    Gollum was definitely onto something.
    Kentucky likes this.
  8. Santinidollar

    Santinidollar Supporter! Supporter

    I have physical gold AND an ETF. The thing to remember with an ETF is that you are buying a security backed by physical gold rather than the metal. In that regard an ETF’s closest cousin is a stock — and not the metal. It’s an important difference.
  9. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    Also the premium to buy/sell an ETF is what your broker charges and no 'shipping' so you are holding gold value until you sell it. If you are "convinced " that the price of gold is either , going up, going down ,or staying within a small amount of where it is, you can buy Options on the ETF to get almost any " I know it will...... by this date" scenario you can imagine. If you are right , you gain $$ , if you are wrong you lose most or all $$, but the premiums are lower when you do. :) Jim
  10. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Yes, but it's still a piece of paper and we just saw with oil futures that prices can trade weirdly under unusual circumstances.

    How would ETF holders feel if gold surged a few hundred dollars in a few weeks and their ETF was flat or went down for whatever reason ?

    You can't own but paper for a stock or bond...but there's no reason IMO to own anything but physical gold bullion and/or coins if you want "disaster insurance" which gold might (?) provide.

    Only paper I think would work as we just saw 2 months ago is U.S. Treasury Bonds.
  11. GoldFinger1969

    GoldFinger1969 Well-Known Member

    With zero $$$ commissions, and with the price of gold ETFs equal to NAV, there really isn't any premium or cost to worry about aside from the annual management fee.

    Last I checked, IAU was cheaper than GLD. Do your own DD. :D
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