# Four Reasons to Buy GOLD



## VJ99 (Apr 24, 2012)

I give four good reasons to buy gold in my just-published column in the National Post.

I was also on BNN's Market Call yesterday answering various questions on ETFs and offering my tops picks,

BTW - I send out an email every other week with links to my columns and appearances. 
Click here to see the latest one. 
If you would like to subscribe to it, send me a an email, Subject: Subscribe.

Thanks, 
Vikash
www.archerETF.com


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## zylon (Oct 27, 2010)

*Good article Vikash*

Investors should beware or at least be aware of *GLD* risks.

No one likes studying fine print; in this 5 1/2 minute video, (about 3 minutes in) 
Lauren Lyster makes studying easier while highlighting segments of the GLD prospectus.


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## fatcat (Nov 11, 2009)

thanks for that column
the big question is how long will the gold run last ?
you cite seasonality which will pass and then central banks and the ease of investing all of which makes sense
i just wish i had a clearer sense of the "legs" for gold
i bought barrick before the recent rally and have thought about buying some goldcorp or argonaut to add to it
but as you know the equities are lagging
where are you at with gold in say 3 years and what do you think of equities ?


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## Eder (Feb 16, 2011)

It would not surprise me if a lot of the gold held in ETF's didn't actually exist,it is just too easy to screw around with it. ie: buying forward production of gold producers ,calling it the real thing so that more shares can be sold etc etc.


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## dogcom (May 23, 2009)

Massive debts and competitive currency devaluations around the world are the main reasons to own gold at this time.

Fatcat you will know when this bull market is over when people are lining up on the street to buy gold. On the gold equities as long as the company answers the phone then you invest in it.


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## bayview (Nov 6, 2011)

QE infinity justifies the need to have some allocation to gold and/ or other PMs. The Fed has now adopted the monetary economists recommendations of setting quantifiable targets which include keeping interest rates low to stimulate a recovery. This may still not boost business confidence. But it is devaluing its currency and igniting further inflationary pressures bode well for gold.


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## Rysto (Nov 22, 2010)

*yawn*

Gold advocates have been predicting terrible inflation for years. It hasn't happened yet and it won't happen until the economy stops stalling, at which point QE will no longer be necessary and monetary stimulus will be withdrawn.


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## andrewf (Mar 1, 2010)

After four years of zero interest rates and QE, Canada's inflation rate has spiked to.... 1.2%.


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## andrewf (Mar 1, 2010)

Eder said:


> It would not surprise me if a lot of the gold held in ETF's didn't actually exist,it is just too easy to screw around with it. ie: buying forward production of gold producers ,calling it the real thing so that more shares can be sold etc etc.


They have a list of bars with serial numbers. Sounds like you are using posterior extraction method.


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## fatcat (Nov 11, 2009)

andrewf said:


> They have a list of bars with serial numbers. Sounds like you are using posterior extraction method.


agree with andrew, one of the reasons the broader investment community derides and makes fun of gold bugs (and thus obscures it real potential value) is that paranoia is the breakfast cereal of that crowd ... the many websites devoted to gold and silver are so rife with conspiracy theories that it makes the serious investor want to run for hills ....


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## Eder (Feb 16, 2011)

Ya, I really should clam up about my reservations about owning part of a list with serial numbers on it. It is just too easy to screw around with a physical gold ETF, but if I don't like it I don't have to buy it I guess.

I do like reference to "posterior extraction". Makes me sound rather scholarly no?


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## zylon (Oct 27, 2010)

^^ Hahaha! ^^
Is that anything like a prostate digital extraction?
- no wait ... that's _examination_ 

Anyway, it's always good to question everything, even serial numbers ... and youtube clips. Remember Bob Pisanti?



> Bob Pisani recently visited the vault that holds the gold bars in the GLD trust. He ends up showing gold bars with serial numbers that do not exist in the trust. The Gold ETF GLD is probably a conduit to corall gold into one spot so it can be nationalized later on.


http://www.youtube.com/watch?v=5l7Wlo-UXuY


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## fatcat (Nov 11, 2009)

the there's this: 10 Tungsten-Filled Gold Bars Are Discovered In Manhattan

i just feel that we all need to take inventory of the level of our paranoia and buy accordingly or better yet have a variety of ways of holding gold, don't put it all into one form ...

i like collecting coins and a little silver bullion but if you read those sites and see stories about "explosion to the upside" and jpmorgan "manipulation" you start to really lose your bearings ... gold and silver to many is a pure undiluted cult in a every sense of the word, people organize their entire lives around the owning and possession of precious metals


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## VJ99 (Apr 24, 2012)

Some folks have questioned whether Gold ETFs...
- hold as much gold as they are supposed to
- hold fake gold bars that are actually gold-plated tungsten
- hold really heavy bars of Swiss chocolate wrapped in gold paper.

Ok - I'm kidding on the last one but really, its not much of a stretch.

As far as the SPDR Gold ETF (GLD) is concerned, the fact is this:
- the gold bars allocated to the fund are held in HSBC vaults in London
- are counted at the end of each day (click here for a count list)
- are verified by a third-party auditor twice a year (click here for their note)

As of 24 Sep 2012, 
Total Troy Ounces held for GLD: 42,658,192
Price per ounce USD: $1,761.06 at about 4:30pm on Sep 25
Total value of gold held: $75,144,538,118 
Total Market Cap of GLD at that time: $75,070,000,000 
The difference between the two is 10bps and likely attributable to timing. 

There are things you have to worry about in life but this is not one of those.


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## KaeJS (Sep 28, 2010)

Gold is a garbage investment.

It should only be purchased for speculation or short term trading purposes only.

Anyone who buys it for long term is a fool.


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## Young&Ambitious (Aug 11, 2010)

KaeJS said:


> Gold is a garbage investment.
> 
> It should only be purchased for speculation or short term trading purposes only.
> 
> Anyone who buys it for long term is a fool.


Kae is back  why do you think long term holding is foolish? Some investors like to hold it to hold up their portfolio in case of a recession, depression, market sell off etc etc as people turn to gold.


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## KaeJS (Sep 28, 2010)

Young&Ambitious said:


> Kae is back  why do you think long term holding is foolish? Some investors like to hold it to hold up their portfolio in case of a recession, depression, market sell off etc etc as people turn to gold.


Glad to see I was missed. :tongue:

Inflation eats Gold for breakfast.

In reading this thread, I remember in 2011 when GLD was about $180 USD/share. I just checked it now for laughs and giggles..... $170 USD.

If there is stimulus, or a depression, these are the speculative times to buy. When they announced stimulus a couple weeks ago, Gold ran up for a few days. That was the time to buy.

You will be a lot more successful trading gold companies.


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## Argonaut (Dec 7, 2010)

KaeJS said:


> Gold is a garbage investment.
> 
> It should only be purchased for speculation or short term trading purposes only.
> 
> Anyone who buys it for long term is a fool.


I guess I am a fool. Though one might be a fool to follow advice from someone who liquidated their entire portfolio in a panic.

Gold is the king of all investments. Nothing is more universal or eternal.


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## webber22 (Mar 6, 2011)

That's right, you can't compare GLD using a one year window, try looking up a 2+ year chart of GLD and things look very impressive


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## dogcom (May 23, 2009)

KaeJS said:


> Gold is a garbage investment.
> 
> It should only be purchased for speculation or short term trading purposes only.
> 
> Anyone who buys it for long term is a fool.




How many fiat currencies are still around over thousands of years? 

Gold will still be here long after the Canadian, US dollar, Euro and so on has long been sent to the dust bin.

Short term or over decades when the long run is thousands of years then one can do much better in the fiat system then gold I would think except in troubled times like we are in now.

The funny thing is so many people think they are right and are talking the long term buy and hold, bonds, modern portfolio theory, the best time to buy is now and all modern thought and so on but really they are the short term traders when you think of it.


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## Oldroe (Sep 18, 2009)

If our financial system fails how will you use gold to buy bread.

U.S. has the advantage skip investing in gold buy a firearm.


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## KaeJS (Sep 28, 2010)

Argonaut said:


> Though one might be a fool to follow advice from someone who liquidated their entire portfolio in a panic.


Who did this?


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## KaeJS (Sep 28, 2010)

dogcom said:


> How many fiat currencies are still around over thousands of years?
> 
> Gold will still be here long after the Canadian, US dollar, Euro and so on has long been sent to the dust bin.


You will be in the dust bin before the CAD disappears.

Gold moves way too slowly. You will never get wealthy by holding gold long term.


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## Jon_Snow (May 20, 2009)

KaeJS said:


> You will be in the dust bin before the CAD disappears.
> 
> Gold moves way too slowly. You will never get wealthy by holding gold long term.


I plead ignorance on Gold... but I am quickly becoming rich by holding GOLDCORP short term! YEE-HAH! :tongue-new:


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## Belguy (May 24, 2010)

Gold bugs rejoice!!

http://www.theglobeandmail.com/glob...o-seven-month-high-nears-1800/article4572190/

And, you ain't seen nothin' yet!!!


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