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<p>[QUOTE=&quot;InfleXion, post: 1358008, member: 29012&quot;]rono, as much as I respect your opinion and have agreed with you often in the past, I feel I must warn people against mining stocks. Besides the inherent risk in any paper/electronic fund that does not carry intrinsic value in and of itself (we can argue that the intrinsic value of the company is inherent in the fund, but if the company didn&#039;t exist that would not be the case so I do not lump that in with the intrinsic value definition of precious metals), there is additional risk in mining companies being nationalized by the government where they reside and disappearing from the equation altogether. This is in addition to the risk of having your assets contained in something that isn&#039;t tangible, that has no practical value. Silver has practical value for electronics. We could argue gold&#039;s only value is as sound money, but that is still something. </p><p><br /></p><p>I completely agree with you in that I do not trust GLD or SLV, as they do not have the bullion to back up their paper contracts, and by their own prospectus the value of these funds is based on the amount of metal they have, not the price of the metal. Since they have to sell their physical metal to remain profitable, the value of these funds has an inherent price decay built in. Also, considering that the SLV specifically has the same broker watching their vaults as who is writing the paper contracts, it is a complete conflict of interest and any potential foul play or dishonesty in the numbers will remain hidden from view. </p><p><br /></p><p>Your analogy of blackjack at a casino is spot on. If you know the game is rigged, why contribute to it? Getting into physical metal is the only way out of this game. Sure the PM markets are controlled by paper contracts today, but that cannot last indefinitely. At some point there will be a rush into tangible assets, and there isn&#039;t enough metal in the world for all the intangible assets without intrinsic value to transfer over into PM&#039;s without much higher PM prices. </p><p><br /></p><p>Ironically I am almost exactly evenly spread between securities, real estate, and PM&#039;s, more so out of necessity than choice. I&#039;d rather have more silver <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie2" alt=";)" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>

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