> >It will be redeemable for real gold bars if you have at least 10000 ounces, > >100000 shares (too high for most, but it is redeemable and that's what > >matters) > >And this gold ETF has no storage costs. > ... > > Beware. Just as there ain't no such thing as a free lunch, there also > ain't no such thing as a "free" gold storage facility. Unlike JP, they do > not repeatedly-explain that they're doing this for marketing reasons, > they just say "no cost." Red-flags galore, IMO.
I don't know all the details but it will work very similar to the well know ETF (exchange traded funds) like QQQ and SPY. These funds also have costs for adjusting the portfolio, and so on, but they cover these costs by a small commission they have on the trading of the QQQ or SPY. If you have GLD (that will be the ticker), your shares will always trade at 1/10th of the price of an ounce of gold. You won't be asked to pay for storage. The people who run the fund (a consortium of gold mines) will cover their expenses by the commission they have on the trade. > > No way. I just don't believe 'em! Storing lots of gold involves things > like secure buildings and trusted employees - some of whom have > gun(s). These things are NOT free!! On top of that, I'm betting their > (probably slow...) exchange process will take MORE of your money > than paying the spread and buying e-gold. Slow exchange process??? It will trade like shares of IBM, GM, or whatever you like. Can hardly be quicker. And the costs? Same like an ordinary share order with any broker. Most online brokers charge something like $10 for an order these days, so that will be the costs no matter if you buy 100 shares (=10 ounces of gold) or 100000 shares (10000 ounces). That is far lower than the spread of e-gold if I am correct. BTW, QQQ is the most heavily traded stock, and the bid-ask spread is always very low on it. > I also wonder why they force those with 400 oz (a STANDARD size > of bar!) to get 10Koz (which means some non-standard segments!) > for redemptions. I guess they don't want to be busy with redemptions. > Finally, they're on stock exchange(s) which permit > (or at least have a hell-of-a lot of) front-running, rather than on the > DBourse, which so far has proven itself more-trustworthy IMO, but > I admit "so far" hasn't been too long...Let's just see which market > gets the next scandal, DBourse or one of the "established" ones. I > know where I'd put MY money if this were a bet... There is only one company listed on DBourse, so it will be a safe bet that the NYSE will probably have the next scandal. But if a same number of companies were listed on DBourse , it would be a very easy bet which exchange will have more scams /scandals. Danny --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
