Country Boy,
A lot of people are waiting for the gold-backed ETF, which I understand will be 100% gold bullion backed, not a mutual fund full of miners. However! The WGC that is putting out the ETF has stipulated that all gold bought for this fund will come directly from gold miners, so this should be good for the miners.
I don't know why they have taken so long to put it out. I can only guess the SEC has stalled progress as they are afraid of what the demand for gold would mean for an economy based on paper debt. Gold is very durable. Given the geopolitical problems and fears of the day, people might prefer to feel safe in gold, especially if they can get a lot of it priced so low. Gold could easily suck the wind out of a pretentious paper market. Maybe they want the POG to be in the high 500's before they allow Americans the opportunity to buy it via their institutional/retirement funds.
Apparently there is a shortfall in the gold supply, something like 700 tons short, after production, recycling, and cb supply are all taken into account. And the POG has been too low-priced to encourage very much exploration, so, unless things change, I think we'll be seeing worse shortages in the next few years.
That's the thing I like about investing in gold. Gold is gold. You either have it or you don't.
E |
