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kaskoosek (99.75)

Eventhough Gold and Silver are up

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September 20, 2009 – Comments (10) | RELATED TICKERS: GTU , CEF

It is a good time to buy GTU and CEF ETFs.

 

The premium over NAV is currently very low as speculators are now bearish on both gold and silver.

 

Eventhough the price of gold has increased from April till now, the GTU ETF has actually receded due to the reason I outlined above.

 

Interesting point: Even if the price of gold goes down, I suspect that the value of the ETF does not have to follow in a 1-1 relationship. This is due to the fact that speculators might turn bullish in the near future bidding the price over NAV again. If these ETFs issue new shares then all the crap I am talking about does not make a difference.

 

 

10 Comments – Post Your Own

#1) On September 20, 2009 at 12:52 PM, kaskoosek (99.75) wrote:

Only the retarded buy either GLD or SLV, because in fact you are holding no real assets. This would be speculation and not an investment.

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#2) On September 20, 2009 at 1:03 PM, kdakota630 (99.95) wrote:

LOL!  I don't know if I'd go so far as to say they're retarded but you make a valid point.

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#3) On September 20, 2009 at 1:12 PM, kaskoosek (99.75) wrote:

kdakota630 

:D ... 

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#4) On September 20, 2009 at 4:13 PM, anchak (99.74) wrote:

Hey Kask....strong words there - but word of the wise.

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#5) On September 20, 2009 at 5:01 PM, AvianFlu (87.69) wrote:

Kask:

I thought  GLD and SLV were backed by actual bullion in storage. Please correct me if I'm wrong.

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#6) On September 20, 2009 at 9:12 PM, ChrisGraley (99.67) wrote:

No ETF's in this country are fully backed by bullion in storage!

 

That being said, I own all of the ETF's mentioned above except GLD in CAPS and none in real life.

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#7) On September 20, 2009 at 11:10 PM, TMFSinchiruna (98.05) wrote:

AvianFlu

This is a source of extensive discussion on the blogs. Be sure to dig deep before presuming that bullion in a vault is the same as unencumbered bullion in a vault. 

The SLV prospectus some couple of years back removed the word 'bullion' from the document ... which many of us found eerie. I wrote to the company inquiring about a rationale for the language chance, and received no response.

Some have pointed to the scale of purported bullion holdings as being itself a source of doubt ... since the metal prices did not behave as one would expect with that much physical supply being removed from the market.

One excellent analysis of the GLD list of serial numbers for the bullion bars claimed found several types of inconsistencies ... including repeated serial numbers. 

The fact that the financial insitutions serving as "custodians" for the bullion happen also to be the very same bullion banks that hold the largest short positions on the metals raises some compelling questions of its own.

What is known for certain is that gold and silver markets are very very very heavily manipulated markets. Study GATA's analysis spanning many years for more.

The identity of the custodians, the heavily leveraged short positions that outsize the entire physical market, the suspension of the uptick rule, and physical supplies from central banks to allocated vaults reportedly being encumbered by leases and derivatives, generates a significant level of skepticism among gold and silver investors that these ETFs indeed hold the fully stated quantity of unencumbered bullion.

 

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#8) On September 21, 2009 at 12:02 AM, AvianFlu (87.69) wrote:

Thanks for the unsettling news. I guess you really can't be 100% sure unless you own the actual physical metal.

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#9) On September 21, 2009 at 12:54 AM, ChrisGraley (99.67) wrote:

Avianflu, you just made a huge breakthrough!  The next step is understanding that once you own it, everyone is going to try to take it away from you.

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#10) On September 21, 2009 at 5:51 PM, AvianFlu (87.69) wrote:

...all the while saying it's "for the children".

 

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