For anyone not aware of the pitfalls of GLD, here is an excerpt
from Sprott's Thoughts by Miles Franklin’s President, Andy
Schectman.
As an industry participant for 27 years, Mr. Schectman shares
words of caution and food for thought for all participants in the
space.
“If you own GLD,”he noted,
“I implore you to read pages 6 through 12 of the prospectus
entitled ‘Risk Factors’. Sit down with a cup of coffee. Read it
[and], read it again. And read it a third time slowly because the
things that are embedded in that prospectus are just absolutely
terrible.”
Fraught with risk indeed. If one day I opt to invest in
the metal (vs the miners), I'll buy gold direct (preferably coins),
rather than buy shares in a trust that passively invests in the
metal, incurs expenses and might be subject to manipulation.
Read any prospectus for that matter. If you're worried about
physical vs paper, go with the allocated Canadian fund instead.
Just don't do it in an IRA.
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GLD
Posted by wowten on 12th of Jul 2016 at 02:16 pm
For anyone not aware of the pitfalls of GLD, here is an excerpt from Sprott's Thoughts by Miles Franklin’s President, Andy Schectman.
As an industry participant for 27 years, Mr. Schectman shares words of caution and food for thought for all participants in the space.
“If you own GLD,”he noted, “I implore you to read pages 6 through 12 of the prospectus entitled ‘Risk Factors’. Sit down with a cup of coffee. Read it [and], read it again. And read it a third time slowly because the things that are embedded in that prospectus are just absolutely terrible.”
Just read through it...
Posted by RichieD on 12th of Jul 2016 at 04:23 pm
Fraught with risk indeed. If one day I opt to invest in the metal (vs the miners), I'll buy gold direct (preferably coins), rather than buy shares in a trust that passively invests in the metal, incurs expenses and might be subject to manipulation.
Why does any of that matter, as long as the GLD price tracks physical gold, and they don't default?
Posted by disciple33 on 12th of Jul 2016 at 04:34 pm
Read any prospectus for that
Posted by a_l_ on 12th of Jul 2016 at 04:44 pm
Read any prospectus for that matter. If you're worried about physical vs paper, go with the allocated Canadian fund instead. Just don't do it in an IRA.