Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Salt'n'Peppa who wrote (109531)	9/16/2008 3:55:51 PM
From: Wyätt Gwyön	1 Recommendation Respond to of 206215

SnP, gold ETFs on margin is not what i'm talking about when i talk about leveraged speculators. that's not "paper gold", because it is 100% backed by bullion, stored in vaults. considering physical bullion held in size also requires custody and insurance for security purposes--and these expenses are probably at least as high as the expenses of the ETFs--and also considering that ETFs let you make purchases in an IRA, and are extremely liquid, the ETFs are imo a very convenient way to get bullion exposure. when i talk about leveraged speculators, i'm talking about the futures market. leverage there is much higher, like 15x or more higher, than the leverage one can get through margin at a stock broker. also, the size and turnover of the futures market dwarf the ETF and physical purchasers.