Hello Hutch, I'm asking you the following question as I know your qualified to answer. I also know you don't beat around the bush and will give a honest critical answer, in your opinion.
Would it be possible to set up a company (to operate on the internet) to sell shares, with the cost of those shares related to the price of gold? The money from share sales used to purchase physical gold. This gold will be stored in a vault connected to an internet site (real time) allowing investors to view their holdings 24 hours a day, if desired.
The purpose of the company will be to appeal to the retail individual investor, who might be interested in purchasing a small amount of gold, but doesn't want the storage, transportation problems and costs. Instead, he can view his gold anytime through the internet camera located in the vault. If John Q. Public's imagination could be captured and the gold pile started to grow, it could catch on to quite a buying spree. The market available to the company would be investors worldwide.
While, with my very limited knowledge, I do think this would be possible, with no interest in having a little of their assets secured by physical gold ,demand would not be enough to cause a rise in gold price. This brings me to the area, I know you have expertise in.
I would like your opinion if it's theoretically possible to purchase some type of gold derivative (option?) to go along with each share (ounce) purchase. What I am thinking is the purchase of 2 options with each share.(ounce). One option would be returned to the investor as his dividend. One option retained by the company as there profit. THE ACTUAL GOLD PURCHASED WOULD BE REMOVED PERMANETLY FROM THE MARKET as written in the company charter. It would be used for some physical purpose.
Do you think that with enough public relations/media campaign, we could get gold to move up?
I know you don't care which way it goes, as long as it goes.
If we managed to change public sentiment and it caught on, would not the investor get his original investment returned (through the derivitive) and have a share in a very valuable company (the other derivitive) plus have the original gold, no matter what the form, be worth perhaps, at least double its original value.
If you take the time to read this ,I THANK YOU, if you wouldn't mind responding to any parts of merit or lack thereof, I would appreciate it. thankyou -mike
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