Replies to post #61973 on Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

Dan....

I don't know how many folks are ready just yet to take delivery of gold or silver. It has to be transported, stored, and insured, all at some expense to the buyer, and I have always looked at owning the physical metals as a poor investment. If gold continues to rise, obviously it is not a losing investment, but almost always the gold stocks will outperform the metal itself, especially when taking dividends into account which give you a positive cash flow rather than the negative cash flow of the physical metal.

My hopes are built on other scenarios, but I would take it if it happened.

mlsoft

[oeo2oo]

Dan,

While your looking up those ounces in storage, perhaps you could do a little digging about the mechanics of the proposed Gold Council's ETF for gold. As I understand it, this would be a paper certificate that will trade freely, and thus available to any institution, including those not normally allowed to own physical gold. I am presuming that this set-up would be similar to QQQs where an institution can create QQQs by depositing the underlying securities and then selling the QQQs.

If these come to pass, it would seem to me that demand for physical would skyrocket, and thus the price of gold. Your thoughts?


oeo2oo