Gold: Physical vs “Paper”

Paper Certificate

Many people choose to invest in mining stocks, Gold certificates, or Gold ETF’s instead of physical gold. These investments don’t offer the same benefits as physical Precious Metals.

ETF’s are trusts that own Gold and the assets are handled by a trustee such as a bank. The trust isn’t liable for any loss, damage, fraud or theft that would affect the shares. These shares can’t even be used to redeem physical gold. ETF’s are NOT physical metals.

Physical Gold

Mining stocks tend to reflect the broader movements of the market more than the movements in the Precious Metals arena. Thus, they are affected by a company’s infrastructure, debt loads, and foreign governments.

There is not enough registered Gold to back Gold certificates that currently are being sold and traded on the market. There were a record 252 claims on every one ounce of Gold available. 

Physical gold doesn’t carry any of these issues. Once bought, it is 100% yours. It can be stored anywhere, can be used as currency and can be liquidated with ease. Arguable the best benefit.