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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Salt'n'Peppa who wrote (32263)	11/13/2004 11:01:51 AM
From: Lhn5	Respond to of 39344

When an ETF goes public, is it different than an IPO when a company sells a set number of shares? If the ETF sells for example, 100 mil dollars worth of shares, then they will buy 100 mil dollars worth of gold. If the price of the ETF then rises, does that provide any additional funds to the ETF to buy more gold?

To: Salt'n'Peppa who wrote (32263)	11/13/2004 11:33:42 AM
From: Carlos Blanco	Respond to of 39344

New ETF could spark Gold rush Investors have long been denied a cost-efficient way to invest in gold bullion without actually buying the metal and stashing it away. At the same time, many institutional investors and mutual funds are barred from purchasing gold or other precious metals directly. i'm 100% convinced that--regardless of whether there occurs a "sell the news" effect in the near term upon launch--this will mark a major milestone in the gold bull market and will lead to a dramatic acceleration in the price of gold sometime in 2005. it's way way more important than the QQQ launch in march 1999. gold is a product like any other, and marketing & ease of use are everything. ease of use (i.e. ease of purchase) has been nonexistent for the average person used to viewing their brokerage account as the only doorway into investments and instantaneously getting their 100 shares of GOOG with a single button click. this opens up impulse gold purchases to millions of people and finally makes gold a viable alternative to cash parking inside brokerage accounts. the amount of money that is able to buy gold is increased by orders of magnitude. it's the key to breaking the comex cat-mouse game betwewen commercials and speculators...a potential torrent of unpredictable new funds which can dwarf and overwhelm the usual paper supply. certainly i'm putting my money where my mouth is...i intend to use this ETF to park every single penny of my uninvested cash. i have no interest in holding any other kind of money in the current "competitive devaluation" mindset.