"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?"
Yes. Very much so. The interest of the shares would need to be held in common. You could use the share price to buy gold. You'd be best to equate the share in form of ounces of gold.
"Public's imagination could be captured and the gold pile started to grow, it could catch on to quite a buying spree."
Why, how would the price of the shares increase? They'd only climb if gold climbed.
"if it's theoretically possible to purchase some type of gold derivative (option?) to go along with each share (ounce) purchase."
Then you'd have to charge a premium to the POG relationship to the share price. Why not just create a neutral hedge on the futures of gold and follow it up and down, using interest from bonds to buy the future options.
"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."
Dividend, from what? You can't create the gold, you aren't investing the gold, you aren't even lending it out. So how can you pay a dividend, let alone the cost of housing what you do have?
What you are saying by this:
"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."
is a pyramid scheme. The first few investors which would have to pay a premium over gold, would draw in the other investors. And thus when the top is reached, and the first investors wanted to sell, the pyramid would collapse. Gold is a none dividend investment unless you loan it out, like CB's do.
But some of these options are plausible, but need to be very tightly controlled. |
