Message:

<p>[QUOTE=&quot;InfleXion, post: 1577240, member: 29012&quot;]I personally am not comfortable holding these ETF&#039;s (except with my 401K since I can&#039;t cash it out while employed). They are an IOU based on something that isn&#039;t there except to the tune of about 2% backing of physical metal in the case of GLD and SLV. They may be safe enough right now, but the moment they become unsafe it will already be too late. </p><p><br /></p><p>All of these paper investment proxies also do a disservice to the investors in them, because had that money been put into physical metal the price would be impacted to a greater degree instead of going through these diversions that do not impact the actual supply. </p><p><br /></p><p>The other thing to consider is that all those leveraged ETF&#039;s are derivatives. They are not stocks in a particular company. They have many degrees of separation from anything of real value, and will be the first to go up in smoke if the financial system starts to falter. They have numerous clouded counter party risk chains, and it only takes one failure in the link to throw a wrench in every instance of rehypothecation. The leveraged ETF&#039;s do not have ANY physical backing. They are just a bunch of hocus pocus so that they track the price accordingly. If you want to hedge your metals then that&#039;s one way to do it, but if you are investing in these, beware.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in