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<p>[QUOTE=&quot;Cloudsweeper99, post: 635777, member: 3011&quot;]I would be careful with GLD and SLV.&nbsp; Read the prospectus.&nbsp; First of all, it isn&#039;t entirely clear that they hold the gold and silver implied.&nbsp; The prospectus indicates they are intended to &quot;track&quot; the price of gold and silver by making shares convertible to metal under certain circumstances.&nbsp; It doesn&#039;t say each share is 100% backed by metal.&nbsp; There is also the issue of short sales.&nbsp; Because of shorting, there are more shares owned by investors than have been issued.&nbsp; The rest are backed by promises to repurchase, not by metal.&nbsp; In a real financial crisis, this might become critically important.&nbsp; Another factor is the management expense deductions.&nbsp; Since both have been in existence for awhile now, there is less than 1/10 ounce of gold per GLD share and less than 1 ounce of gold per SLV share.&nbsp; They are wasting assets.&nbsp; Another little headache, assuming you want to stay within the law, is the tax treatment.&nbsp; Both are flow-through entities that require some tricky tax work if you hold them in taxable accounts and comply with the tax code.&nbsp; They are also treated as collectibles when sold.</p><p><br /></p><p>In short, it isn&#039;t a slam dunk sure thing that they are suitable for everyone who owns them&nbsp; You have to study them and conclude that the negatives represent an acceptable level of risk that is greater than owning a coin.[/QUOTE]</p><p><br /></p>

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