Has more gold been sold than exists?
- Thread starter uscitizen
- Start date
Minister of Truth
Practically Perfect
If you have that ability to turn everything that you touch into gold, then go for it!
FUCK THE POLICE
911 EVERY DAY
What?
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The Almighty
Just wondering... but what prompted this question? Has something occured to make you think this is true?
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The Almighty
Please explain, where have you heard that from?
be careful. i also heard rumors on virtual gold.
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The Almighty
lol... I am asking, because I want to read up on it. I have a pretty good feeling on WHY people think this, but want to read where they are getting their information before I wade into this discussion.
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The Almighty
That is why I asked you why you posted this thread. The perception that more paper gold exists than the physical gold to support it is false. The reason is the 'virtual gold' ETF's that are out there.
The answer to the above is YES... the 'virtual' gold ETFs are designed to mimic the price of gold. They do not actually buy gold bullion.
Not all ETF's are virtual. Some, like GTU, raise money through share offerings and use that cash to actually buy bullion. So investors should be very cautious when buying ETF's. Know whether or not they buy the actual bullion or whether they are derivatives designed to ATTEMPT to mock the moves in the price of gold.
Personally, I would buy the ETFs like GTU (or the actual bullion as you did) and would stay away from the 'virtual' gold.
The actual mining stocks can provide better values at times with greater growth potential, but they are not always going to move in tandem with gold prices, so they are not to be used as the inflation hedge (at least not as good of a hedge) that gold bullion is.
DigitalDave
Sexy Beast!
Fuck, you're safer buying a company in bankruptcy proceedings than gold?
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The Almighty
I wouldn't say scammers for the most part. The vast majority of the ETFs are very clear as to whether they buy bullion directly or if they are a derivatives tool used to mimic the price of gold.
That said, as with anything, there are those that will try to scam people on gold. I would suggest sticking to buying bullion directly or buying an exchange traded fund. If it is exchange traded, then make sure you know which you are getting. Personally I use GTU/GLD for gold and CEF for a gold/silver bullion combo.
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The Almighty
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The Almighty
That is not accurate. GTU and GLD buy bullion and that bullion is audited on a regular basis to ensure they are holding the actual bullion. CEF does the same with its gold and silver.