PHYS vs GLD vs UGL
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.
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