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Trading Physical Gold As Easily As You Trade Stocks: Is Gold Becoming A Tradable Currency After All?
Reggie Middleton Interviews GBI: Gold Bullion International
I
interview a unique firm located on Wall Street that allows investors
(retail & institutional) to actually buy, sell, trade and store
physical gold in the investor's own name. This is part one of a four
part series. This is the introduction. Parts 2,3, and 4 (yet to be
posted) feature some very tough questions. BoomBustBlog interviews are
not pushovers or advertisements. You must be able to hold your own.
Enjoy!
This is a competitor to GBI: Gold Bullion International. Click the graphic to access site.
Click graphic to the left to enlarge!
| Click the graphic to the right to download the Sprott Physical Gold Trust Prospectus. Sprott is a BoomBustBlog client, but is not aware of this post (at least not yet) and there are no conflicts here. I may have him interviewed to enable him to counter assertions made in the interview above. |
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Anyone Free public versions that have
We feel the insurance industry may kick off events that cause volatility in the gold markets. See You Can Rest Assured That The Insurance Industries Are In For Guaranteed Losses … |
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JPM Public Excerpt of Forensic Analysis Subscription 2009-09-18 00:56:22 488.64 Kb
BNP Exposures - Free Public Download Version
Exposure of European insurers to PIIGS_051210The SPDRs GLD prospectus is available here. Highlights:
Gold exchange-traded product information sourced from Wikipedia, the free encyclopedia
Gold exchange-traded products are exchange-traded funds (ETFs), closed-end funds (CEFs) and exchange-traded notes (ETNs) that aim to track the price of gold. Gold exchange-traded products are traded on the major stock exchanges including Zurich, Mumbai, London, Paris and New York. As of 25 June 2010, physically backed funds held 2,062.6 tonnes of gold in total for private and institutional investors.[1] Each gold ETF, ETN, and CEF has a different structure outlined in its prospectus. Some such instruments do not necessarily hold physical gold. For example, gold ETNs generally track the price of gold using derivatives.
History
The
first gold exchange-traded product was Central Fund of Canada, a
closed-end fund founded in 1961. It later amended its articles of
incorporation in 1983 to provide investors with an exchange-tradable
product for ownership of gold and silver bullion. It has been listed on
the Toronto Stock Exchange since 1966 and the AMEX since 1986.[2]
The idea of a gold exchange-traded fund was first conceptualized by Benchmark Asset Management Company Private Ltd in India when they filed a proposal with the SEBI in May 2002. However it did not receive regulatory approval at first and was only launched later in March 2007.[3] The first gold ETF actually launched was Gold Bullion Securities, which listed 28 March 2003 on the Australian Stock Exchange. Graham Tuckwell, the founder and major shareholder of ETF Securities,
was behind the launch of this fund and enlisted N.M. Rothschild &
Sons (Australia) Ltd, Citibank and Deutsche Bank as market makers on the
ASX.[4]
Fees
Typically
a commission of 0.4% is charged for trading in gold ETFs and an annual
storage fee is charged. U.S. based transactions are a notable exception,
where most brokers charge only a small fraction of this commission
rate. The annual expenses of the fund such as storage, insurance, and
management fees are charged by selling a small amount of gold
represented by each share, so the amount of gold in each share will
gradually decline over time. In some countries, gold ETFs represent a
way to avoid the sales tax or the VAT which would apply to physical gold coins and bars.
In the United States, sales of a gold ETF are treated as sales of the underlying commodity and thus are taxed at the 28% capital gains rate for collectibles, rather than the rates applied to equity securities.[5]
Exchange-traded and closed-end funds
Central Fund of Canada and Central Gold Trust
The Central Fund of Canada (TSX: CEF.A, TSX: CEF.U, NYSE: CEF) and the Central Gold Trust (TSX: GTU.UN, TSX: GTU.U, NYSE: GTU) are closed-end funds headquartered in Calgary, Alberta, Canada,
mandated to keep the bulk of their net assets in precious metals, with a
small percentage of cash. The Central Fund of Canada holds primarily a
mix of gold and silver, while the Central Gold Trust holds primarily gold.
The custodian of the precious metals assets of both funds is the main Calgary branch of CIBC. Both funds are considered especially safe because of their published codes of governance and ethics, the Central Fund's history of operation since 1961, and the funds' simple prospectuses
which equate shares of the closed-end funds with real units of
ownership in the trusts. As of October 2009, the Central Fund of Canada
held 42.6 tonnes of gold and 2129.7 tonnes of silver in storage, and the
Central Gold Trust held 13.6 tons of gold in storage.
Claymore Gold Bullion ETF
In May 2009 Canadian-based Claymore Investments launched Claymore Gold Bullion ETF (TSX: CGL). As of November 2010 the fund held 10.4 tonnes in gold assets.[6]
Exchange Traded Gold
Several associated gold ETF's are grouped under the name Exchange Traded Gold.[7] The Exchange Traded Gold funds are sponsored by the World Gold Council, and as of June 2009 held 1,315.95 tonnes of gold in storage.[7] Exchange Traded Gold securities are listed on multiple exchanges worldwide by various ETF providers, including:
SPDR Gold Shares
SPDR Gold Shares marketed by State Street Global Markets LLC, an affiliate of State Street Global Advisors,
accounts for over 80 percent of the gold within the Exchange Traded
Gold group. As of 2009, SPDR Gold Shares is the largest and most liquid gold ETF on the market, and the second-largest exchange-traded fund (ETF) in the world.[8][9]
Stock market listings:
The SPDR Gold Trust ETF (GLD) holds a proportion of its gold in allocated form in London at HSBC, where it is audited twice a year by the company Inspectorate. GLD has been criticized by Catherine Austin Fitts and Carolyn Betts for its extremely complex structure and prospectus, possible conflict of interest in its relationships with HSBC and JPMorgan Chase which are believed to have large short positions in gold, and overall lack of transparency.[10] GLD has been compared with mortgage-backed securities and collateralized debt obligations.[10]
These problems with SPDR Gold Trust are not necessarily unique to the
fund, however as the dominant gold ETF the fund has received the most
extensive analysis.
Gold Bullion Securities, ETFS Physical Gold and ETFS Physical Swiss Gold
ETF Securities "Gold Bullion Securities" (previously marketed by Lyxor Asset Management) listings:
- Australia (ASX: GOL), Belgium, France (Euronext: GBS), Germany (FWB: GG9B), Italy, Netherlands and United Kingdom (LSE: GBS and LSE: GBSS)
Similar to Gold Bullion Securities, ETF Securities’ ETFS Physical Gold (LSE: PHAU) and ETFS Physical Swiss Gold (LSE: SGBS) are also backed by allocated gold bullion. They later launched ETFS Physical Swiss Gold Shares (NYSE: SGOL) and ETFS Physical Asian Gold Shares (NYSE: AGOL) on the New York Stock Exchange for US investors seeking geographical and custodian diversification.
ETF
Securities’ physical gold ETCs — ETFS Physical Gold (PHAU), ETFS
Physical Swiss Gold (SGBS) and Gold Bullion Securities (GBS) — are all
backed by “allocated” gold bars – uniquely identifiable bars which carry
no bank credit risk. The precious metal bars are held in trust in
London by the Custodian HSBC Bank USA N.A., the world’s leading
Custodian for ETCs. The metal held with the Custodian must conform to
the rules for Good Delivery
of the London Bullion Market Association (LBMA). Securities are only
issued once metal is confirmed as being deposited into the Company’s
bullion account with the Custodian. Consistent with allocated gold, no
precious metal is borrowed, loaned out nor does it earn any income.[citation needed]
Dubai Gold Securities and NewGold
- Dubai Gold Securities (Sharia compliant) (NASDAQ Dubai:GOLD)
- ABSA "NewGold" debentures (JSE: NewGold)
Goldist ETF
Goldist ETF (ticker symbol: GLDTR) was launched by Finansbank in September 2006 on the Istanbul Stock Exchange.[11]
iShares Gold Trust
The iShares Gold Trust was launched by iShares on 21 January 2005 and is listed on the New York Stock Exchange (NYSE: IAU) and Toronto Stock Exchange (TSX: IGT). As of July 29, 2010, the fund claimed to hold 90.88 tonnes
of gold in storage. According the prospectus, trading in the fund may
be suspended if COMEX gold trading is restricted or gold delivery is not
possible. Some writers have expressed doubts that iShares has
sufficient gold inventory to back its existing warehouse receipts.[12]
One of the main differences between iShares and SPDR Gold Trusts is
that iShares creates roughly 100 shares from every ounce of gold, versus
the 10 shares per ounce created by SPDR. This makes iShares more
accessible for day traders or small investors to play the gold market.[13]
Julius Baer Physical Gold Fund
In October 2008 Swiss & Global Asset Management (formerly Julius Baer Asset Management) launched JB Physical Gold Fund (SIX: JBGOCA, JBGOEA, JBGOUA, JBGOGA)
which invests in physical 12.5 kg gold bars (around 400 ounces). The
ETF has four unit classes traded in different currencies: CHF, EUR, USD and GBP.[14]
Precious Metals Bullion Trust
On August 14, 2009 Brompton Funds Management Limited launched Precious Metals Bullion Trust (TSX: PBU.UN).
The Fund invests in physical gold, silver and platinum bullion bars
which are stored on a fully allocated, insured and physically segregated
basis in Canada, in the treasury vaults of the Bank of Nova Scotia, a Canadian Schedule 1 bank. PBU.UN publishes its “Good Delivery” standard bar holdings on a monthly basis on its website[15]
and units can be redeemed quarterly at Net Asset Value for cash with no
limitations. As the physical bullion held by the Fund is entirely
unencumbered, unitholders may also choose to redeem quarterly for whole
bars of physical gold, silver and platinum bullion (subject to minimum
redemption amounts).
Sprott Physical Gold Trust
Sprott
Asset Management launched the Sprott Physical Gold Trust as a
closed-end fund on February 26, 2010. It is traded on the NYSE Arca (NYSE: PHYS) and the Toronto Stock Exchange (TSX: PHY.U). The fund holds physical gold, stored at the Royal Canadian Mint.
PHYS publishes its inventory of Good Delivery gold bars on the web, and
(uniquely among gold ETFs) allows shares to be redeemed for whole bars.
As LBMA bars weigh between 350 and 430 troy ounces, physical redemption
is limited to such increments. Regardless, the provision for physical
redemption lends credibility to the fund's claim of holding unencumbered
physical gold, especially as of 2010 when funds such as SPDR Gold
Shares with elaborately structured holdings are under scrutiny. As of
June 2010, the Sprott Physical Gold Trust held 582,417 ounces of gold,
plus about $9 million of other assets.[16]
ZKB Gold ETF
The ZKB Gold ETF (SIX: ZGLD, ZGLDEU, ZGLDUS, ZGLDGB) was launched on 15 March 2006 by Zürcher Kantonalbank.
The fund invests exclusively in physical 12.5 kg gold bars (around 400
ounces). The ETF has four unit classes traded in different currencies: CHF, EUR, USD and GBP.[17]
Exchange-traded certificates
Source Physical Gold P-ETC
Source,
the specialist provider of exchange traded products partnered with BofA
Merrill Lynch, Goldman Sachs, JP Morgan, Morgan Stanley and Nomura,
listed the Source Physical Gold P-ETC (SGLD) on the London Stock Exchange in June 2009.[18] The product has also been cross-listed on the SIX Swiss Exchange (SIX)in November 2010.[19]
SGLD trades in US dollars and has raised over US$1.1 billion in assets to date.[20]
Each
Gold P-ETC is a certificate which is secured by gold bullion held in
J.P. Morgan Chase Bank’s London vaults. The vast majority of gold
bullion is held in allocated gold bars. Any residual value that cannot
be split into standard gold bars will be put into unallocated gold. This
is placed in a segregated account with J.P. Morgan Chase Bank acting as
Custodian and Deutsche Bank as Trustee. The investment return is
achieved by holding gold bullion which is valued daily at the London PM
fixing price.[21]
One
of the main advantages of this product is the annual management fee,
which at 0.29% is considerably lower than comparable competing products.
SGLD has achieved UK reporting status, which provides for preferential
tax treatment in the United Kingdom.[22]
db Physical Gold ETC
db Physical Gold ETC (SIX: XGLD, LSE: XGLD, FWB: XAD5) was launched by Deutsche Bank in July 2010.[23]
Nomura Gold-Price-Linked ETF
On 10 August 2007, Nomura Asset Management launched the Gold-Price-Linked ETF (code "1328") on the Osaka Securities Exchange, Japan. Shares are sold in 1 gram gold units, with a minimum purchase of ten units. The fund is not backed by physical gold but by bonds traded in London which are linked to the price of gold.
RBS Physical Gold ETC
Royal Bank of Scotland N.V. launched RBS Physical Gold ETC (FWB: XOB1) in April 2010.[24]
Xetra-Gold
Xetra-Gold (FWB: 4GLD) was launched by Deutsche Börse Commodities in December 2007.[25]
Hybrid products
Hybrid
products hold mostly physical gold, but also hold other financial
instruments such as gold futures, bonds or money market funds.
Benchmark Gold BeES
On 19 March 2007 Benchmark Asset Management Company Private Ltd, a Mumbai-based mutual fund house, launched Gold BeES (NSE: GOLDBEES) on the National Stock Exchange of India.
The name is short for "Gold Benchmark Exchange-traded Scheme." Shares
are sold in approximately 1 gram gold units. The scheme's assets are
90-100% physical gold, and up to 10% money market instruments, securitised debts (up to 5%), and bonds.[26]
UTI Gold Exchange Traded Fund
On 17 April 2007 UTI Mutual Fund listed Gold Exchange Traded Fund (NSE: GOLDSHARE) on the National Stock Exchange of India.
The fund states that its objective is "to provide investment returns
that, before expenses, closely correspond to the performance and yield
of the gold prices or gold related instruments."[27]
Every unit of UTI Gold Exchange Traded Fund approximately represents
one gram of pure gold. Units allotted under the scheme will be credited
to investors’ demat accounts.[28]
Index-tracking products
ETFS Gold
In September 2006 ETF Securities launched ETFS Gold (LSE: BULL) which tracks the DJ-AIG Gold Sub-Index.
IDBI Gold ETF
IDBI
Mutual Fund has launched IDBI Gold Exchange Traded Fund, an open ended
Gold Exchange Traded Scheme. The investment objective of the scheme is
invest in physical Gold and Gold related instruments with the objective
to replicate the performance of Gold in domestic prices. The ETF will
adopt a passive investment strategy and will seek to achieve the
investment objective by minimizing the tracking error between the Fund
and the underlying asset . The New Fund Offer (NFO) open for
subscription from October 19 and close on November 2, 2011. The New Fund
Offer price is Rs 100 for cash at a premium equivalent to the
difference between the allotment price and face value of 100/- each.
Allotment price would be approximately equal to the price of 1 gram of
Gold. The Scheme does not offer any Plans for investment. The minimum
investment amount is 10,000 and in multiples of Rs. 1 thereafter. Entry
and exit load charge will be nil for the scheme. The scheme will invest
95% to 100% of assets in gold and gold related instruments and upto 5%
of assets in debt and money market instruments. The Benchmark Index will
be domestic price of physical Gold
PowerShares DB Gold ETF and ETNs (PowerShares/Deutsche Bank)
Tracks the performance of certain index moves inside the Deutsche Bank Liquid Commodity Index - Optimum Yield Gold [1]. ETNs are exchange-traded notes, which differ from exchange-traded funds (ETFs).
»
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FYI-
Chris Martenson recommends Bullion Vault.
This is you a few years from now, after the money changers have destroyed everything. Imagine how your feeling now that you've sold all your gold to 1-800-cash for gold.....
http://www.youtube.com/watch?v=7ubJp6rmUYM
Note that one guy filtering his specs of gold in a worthless 50,000 dollar folded bill. What would a 1oz. gold eagle be worth and how could you exchange it without being murdered ? One reason you might be better to hold 10- 1/10th oz. maples.. perhaps less likely to be slaughtered that way.
PB
The other precious metal
Something of a gold rush happening in Alabama, it seems, I have not read Reggies article yet but knew a few ZHers would want to be alerted to this possible gold source.
http://wheredagoldat.com/
The problem with "trading" physical gold is that you must have a belief that the gold you receive is real gold, and not filled with slugs. so unless you are willing to melt and assay each transaction, you might get shorted. It is like the old miners that would sell a mine after salting it by shooting gold into the walls with a shotgun.
Non destructive Gold testing is now available. It tests the density and conductivity of the metal. This works for Gold in 1 gram coins all the way up to 400 oz bricks.
I wonder if they do that at Fort Knox??
There is nothing to test in Ft KNox. Nothing to see here. Move along, move along.
reggie! howd you get barry white to do the interview!? in all seriousness, thank you for the (and previous) post.
If you wish to trade why not trade GLD, DGP (2x) or UGLD (3x and tracks accurately but very low volume)? Not to mention their inverse brethren.
Unless the entire shithouse blows up overnight, those instruments are readily available and you get in & out in a few keystrokes while seated in your bathrobe.
This thread is more than a little tin-hattish.
Excellent summary, BTW. I'll have to gove it some thought since devaluation of paper seems liekly to continue for 10-15 years or longer.
Wave of the Future. People in India already do it all the time...silver and gold as savings, wealth preservation, trading, collateral, etc. Look at the Swiss and Germany...guard their gold like Bulldogs.
DoChenRollingBearing
have a good time in peru
David Ganz is no lightweight in the coin biz, so his words are worth a look:
http://www.usagold.com/gildedopinion/gold-confiscation-ganz.html
The Royal Canadian Mint launched a very succesful IPO of exchange-traded receipts:
http://www.financialpost.com/opinion/columnists/Newly+Minted+product/5730124/story.html
You can redeem as frequently as once a month, with a min. redemption of 200K. You can redeem all the way down to coins.
no sales tax in buying bullion local in most places .
but what the hay .. just grab it and go . whats all the yabber about a tax .. a tax at 5.00 silver is long forgotten a tax at 30 bucks will be history . and ditto 40..
so trade in and out tax at short term 35% lol
many will not buy real because they like to hit knats with sludge hammers
and are like a reed in the wind .
so stack the stuff at home .. and 10,000 oz of sillver at 100 buxks is a million $
a 1000 oz of gold at 4500 is 4.5 million.
so get a truss to support the back.
and all the experts in gold and silver yapper .. what were you doing at 4.50 silver and 325 gold .
probably the same thing now ,, looking at the painted charts to run a couple dimes .
Brah dumpster, good seeing you again about these parts!
I could not agree more about buying gold for the upside, even with paying a sales tax. True, most states do not make you pay sales tax.
1000 oz of gold? MUCHO! Let´s look at a FOFOA scenario (where you would need to buy less). If a ¨FOFOA¨ happens, well here´s my math:
100 oz gold, bought at (say) an average price of $1000 = $100,000 cost of gold
100 oz gold, revalued after paper gold crashes and burns and hyperinflation happens, at $60,000 equals...
$6 million! (non-hyperinflated dollars) And that´s just 100 oz.
Gold is still one of the best bargains available on Planet Earth right now. There is another FABULOUS bargain available right here in Peru (where I am on visit now), but I will have to keep that one secret! Sorry!
Pan flutes!
Let's not overlook the obvious: www.dgcmagazine.com
Like Bitcoin, but GOLD. :)
Buying from local dealers = sales tax?
I've only bought online, and not paid sales tax..
I have bought gold in two states, from coin shops for decades. No sales tax in either one, although I hear that some states DO impose sales tax on gold.
Obviously, everyone´s mileage may vary.
And it's stranger than that: it could depend on the amount you buy at one time.
For example, Texas imposes sales tax unless the total price is >= $1000.
So, it pays to buy local if the cost over spot is comparable to online and you're dropping more than $1k.
Reggie,
This is BEST Interview I have seen in a LONGGGGGGGGGGGG Time!
You should do MORE INTERVIEWS! You ask ALL! the Right Questions and in the Right Way!
God Bless You and Yours Reggie!
Please do more Interviews! Bring Us More!!
and it wouldnt kill you to do an inside look at Occupy Wall Street post the park raid, jus sayin Bra!
I think Tyler and You (Reggie) should go out and ask the hard questions and bring us Great / Fantastic Offerings!
Ask the Hard Questions!
Get the Answers to the Hard Questions!
and POW! knock it outa the park!
You guy has been on Bloomberg or other as well.. he showed well then too.
My Best to You and Yours Reggie as always (except for when you piss me off), JW
I would suggest NOT buying gold in any other manner than paying for it and taking physical delivery of it. And then hiding it well... My preference (as flattrader wrote just above) is to pay cash (no paper trail, or at least a minimal one) and not buy it from the APMEXes and Tulvings (unless you buy MORE than your local coin shop(s) can handle).
Thos who like to trade, well, OK, then the GLDs and these vault services are OK. But, it is not really YOUR GOLD unless it is under YOUR control and close at hand.
The only exception I could understand is if you live in an unsecure place and have nowhere good to hide it. But, be creative, there are lots of places to hide gold, even in an apartment! (eg, in the frozen spaghetti sauce)
---
Mu guess is that confiscation will not happen. I also believe I recall that when FDR confiscated the gold in 1933, that only about 10% was actually turned in.
---
Oh, and please do be careful about all those boating accidents that happen when gold owners take it along while fishing! Many of my BLOG readers have told me tales of woe of losing their gold! Interested in taking a look at my blog? Send me a gmail at my name, promise to behave, and I´ll send you the link. I can do this even here in Peru, LOL...
what's wrong with Tulving? Last time I bought from them the preminum to spot was like 39 cents per oz of silver on 100oz bars.
Update: the premium now is 59 cents on 1 oz silver rounds - they are out of those mentioned bars - they have 100oz bars for 69c above spot.
The tale about putting your PM in frozen spaghetti sauce is quite interesting, but consider some people here have millions of dollars and storing that silver requires a little more storage power than a can of spaghetti. Just for your information - 500 oz package of coins is aproximately 39 pounds brick. 2000 oz is so heavy - you can't lift it. 10,000 oz stacked up can break your floor if you put it in the safe unless you have concrete floor... and the value of that is just mere $320K.
@ spencer
Nothing wrong with Tulving, except that you leave a paper (electronic) trail. If that´s OK with you or anyone, I have no issue against that.
You are CORRECT in that he has the best prices in town.
But I (and many others) buy smaller amounts. Sure wish I DID have 500 oz (Au), LOL... Although I see that you wrote 500 oz of silver.
If anyone is fortunate enough to need to store more than, say, your 500 oz of gold, then almost by definition they can find a place somewhere in their MANSION, LOL...
Storing lots of silver is a problem, as you correctly identify. That´s why I have more $ value in gold.
they have already confisicated people,,,,,,its called "CASH FOR GOLD"....the wife went to a pocketbook party at someones house there were people buying pocketbooks with cash they used from selling their jewelry at the same party,,,,,,so they have the cash for gold people at peoples houses for these bullshit little house parties to sell tupperware etc........
A fool and his money (gold) are soon parted...
>>>Mu guess is that confiscation will not happen. I also believe I recall that when FDR confiscated the gold in 1933, that only about 10% was actually turned in.<<<
My issue is that should gold coinage be subject to confiscation, it's use as a medium of exchange declines dramatically in that form. Let's remember that private gold (coin) ownership was still illegal in the U.S. until the end of 1974...that was a long damn time.
This is worth reading to understand why the 1933 Confiscation was by and large NOT onerous at the time to most gold coin holding Americans.
http://news.goldseek.com/GoldSeek/1143389040.php
If anyone thinks that people were not owning trading gold coins between 1933 and 1974, they are nuts. As far as it being onerous... they buy your gold for $25 per oz. and then immediately up the value to $35? It would have pissed me off.
"I would suggest NOT buying gold in any other manner than paying for it and taking physical delivery of it. And then hiding it well... My preference (as flattrader wrote just above) is to pay cash (no paper trail, or at least a minimal one) and not buy it from the APMEXes and Tulvings (unless you buy MORE than your local coin shop(s) can handle).
Thos who like to trade, well, OK, then the GLDs and these vault services are OK. But, it is not really YOUR GOLD unless it is under YOUR control and close at hand."
I heartily endorse this method of owning PM's.
It wasn't that long ago when people were afraid they would lose their entire life savings because of yet another financial crisis when "rock solid financial institutions" started crumbling...lol.
And some people sat there...transfixed...shocked...helpless.
But not everyone ;-)
I agree with You!
But for trading in and out? this may be the best thing going..
once again for people playing the swings in price, not for a persons personal stash!
For traders, sure. I suppose. For many its "their daytime job", that and writing options. I have a different daytime job where I'm Taxed Enough Already...lol.
I used to trade a little bit but I discovered the risk/reward didn't weigh out for me...and the paperwork at tax time was ridiculous. I never did better than 50/50 YOY so it seemed pointless after five years or so. It takes alot of time, effort and discipline to be good at it.
Glad we could finally agree on something ;-)
10-4 on that re trading! The Bearing has demonstrated to himself enough times that he a better STACKER than TRADER!
My ¨Day Job¨, if you will, is to (ultimately) turn pieces of 52100 bearing steel into gold! Alchemy!
Reggie, will you be interviewing Bullionvault and Goldmoney too?
Also, when recommending physical gold to American friends, I often hear that they don't know how to do so within their IRA, which is where they've stored most of their financial assets (and are reluctant to take them out off because of taxation). Maybe you could explore options for those people too?
www.goldmoney.com seems to be the only outfit that makes it easy to take delivery of your own metal. These GBI guys have a cool idea but it still takes the metal out of your hands and according to their website they discourage taking possession.
I believe in James Turk and his company as well. There is also Mike Maloney's site too.
Goldmoney allows people to store PMs out of country, in Austria, China, etc. for a small fee (I think I calculated that $10k for 1 year was $50 but it's easy enough to verify on your own).
With Catherine Austin fits they are also trying to create a "debit" card for gold and silver use I believe.
You of course can't take physical delivery of gold in an IRA. The CUSTODIAN holds your assets, just as with fiat currency or equities. Bummer. But YES you can hold both currency (CDs either in a sweep brokerage account or regular custodial CD) and physical gold in an IRA (SEP, Roth, Traditional). I agree not everyone realises this. Thanks Reggie.
That's good to hear, but how? From what I understand my friend can only buy through a broker, and so, is probably limited to exchange traded products (or is he?). Does that mean that GLD and other ETFs are his only option or is there something better out there -- something as close as possible to outright ownership of unencumbered physical gold? I think it would be useful for a large section of the American readership if Reggie would address this.
http://www.apmex.com/GoldinIRA/Default.aspx
Thanks!! Will pass it on to my friends.
>>>Anyone who considers gold the armageddon trade should also believe that our select financial sector research will lead to a windfall. Subscriber reports available to th right...<<<
I think anyone who is looking at gold as an armageddon trade better hold their physical and pay cash for it, consider something other than coin (which will be confiscated--remember the 30s?) and never ever discuss how much, what form it's in or where it is...
The boasting the goes on around here is un-freakin' believable.
Executive Order 6102 signed April 5th, 1933, was for "gold coin, gold bullion and gold certificates." It was not just coin.
Yes.
Gold certs were "paper".
Bullion was not widely held then or now by average Americans
Easily identified coinage (like US Eagles) seems to be the psyco-sexual fantasy of the ZH crowd...who expect to buy a house, farmland etc... with one gold coin and who still don't understand there's other forms of physical.
If 'they' decide to confiscate gold, they won't restrict it to coins.
I very much doubt they will confiscate it, though. For a start, back in 1933, gold was money, so the only way to devalue the dollar was to confiscate everyone's gold before changing the dollar/oz price.
Furthermore, back then, everyone had gold (see above). Now it's just a few mad goldbugs :-) and the financial elites. The former will just bury it in the local woods, and the latter will dump it in a trust, and lobby against confiscating it in the first place, so there's not a lot of point in the government attempting to confiscate it. Though, if Jim Rickards is right, they might very well confiscate any other countries' holdings, tonnes of which are in the NY Fed.
Rapaciously taxing any capital gains made by exchanging fiat for gold and then later back into fiat, once the dollar has been crushed? Believe it.
+1 And most of the gold at that time was in bank vaults and owned by the bank so the required turn in was relatively easy. Plus individuals were allowed to keep $100 (just under 5 ounces) in addition to numsimatic coins.
Not true, with the many bank failures after 1929, a lot of Americans did not trust banks and hid their valuables on their own property.
I remember a scam back in the 70's that a friend invested in called the International Gold Bullion Exchange. He tried to get me to buy also. I kept asking him about the fact that he would not actually take physical delivery of his purchase because the company stored it in a vault in Utah somewhere. I didn't think it sounded right. He lost all his money.
scams abound, goto 47th st. books can be a great investment also.
http://expose2.wordpress.com
It is really important to deal with a top-name mail order firm when buying gold through the mail. Far better to pick it up directly.