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PHYS vs GLD vs UGL

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September 03, 2010 – Comments (7) | RELATED TICKERS: GLD , UGL

If youre here to throw the word gold bug around, then please don't.

For those gold investors, which of the three do you like most? I can't decide because:

1) PHYS- this makes the most sense, because you can actually redeem the gold.  However, why would you want to when it is so much more liquid to just keep the ETF? So you're better off going with GLD, plus you won't pay as high a premium.  But:

2) GLD- a lot easier to track, especially since youre not going to redeem it.  But since you wont redeem it, and it will never pay a dividend, all you have is a piece of paper that says you own gold.  But you dont own gold, you own paper.  You can never redeem the gold.  You could say the same about stock, but with stock 1) you have partial decisions on company events 2) you have dividends. However, the GLD has been making people money since people are willing to pay a lot of money for paper gold.  So:

3) UGL- Not fully backed by gold, uses leverage.  Yeah it loses a little bit in the rebalance, but if you think gold will go up nd feel strongly about it, why not UGL?  With GLD and UGL youre only getting paper gold, why not go with UGL?

 

I am interested in hearing some opinions on the matter.

7 Comments – Post Your Own

#1) On September 03, 2010 at 6:02 PM, jlmjlm77 (99.36) wrote:

I see Gold is a hedge primarily against a crisis and I don't want paper in a crisis, but no need to pay much of a premium.  Too many other alternatives.

Also consider PLTT and other rare metals. 

 

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#2) On September 03, 2010 at 8:44 PM, HarryCaraysGhost (99.70) wrote:

I like CEF since you also get silver expousure.

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#3) On September 03, 2010 at 8:51 PM, atarigod (< 20) wrote:

You could always open a futures account and take physical delivery if you choose to do so.

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#4) On September 03, 2010 at 10:25 PM, SockMarket (41.61) wrote:

Congrats on the ranking!!! 

I like GTU personally.They have a very solid track record. That said here is a chart comparing the performance:

http://finance.yahoo.com/echarts?s=PHYS+Interactive#chart1:symbol=phys;range=1y;compare=gld+ugl+gtu;indicator=dividend+split+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

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#5) On September 04, 2010 at 12:54 AM, Beorn10 (30.05) wrote:

CEF because of the gold and silver mix.  You pay a premium for PHYS, which I don't think is really needed, but if there was a run on PM, then CEF and PHYS investors would probably be OK.  The other gold ETFs may not be as safe.

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#6) On September 04, 2010 at 10:16 AM, Valyooo (99.54) wrote:

Thanks daniel! With my first two accounts, I just picked stocks without any thought, and I never closed picks...now I am actually paying attention haha.

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#7) On September 04, 2010 at 10:28 AM, Valyooo (99.54) wrote:

BTW nice chart.

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