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Degussa/Dr. Thorsten Polleit/9-24-2020
“[I]nvestors should be aware that the risk profile of holding physical gold (in the form of bars and coins) is rather different from investing in gold ETFs/ETCs. If you hold physical gold (in, say, a safe deposit box outside the banking system), you are not exposed to the risks that typically come with ETFs and ETCs – such as, for instance, counterparty risk, the risk of discrepancies between the physical gold price and an ETF/ETC share, risk that losses may occur from actively managed ETFs/ETCs, the risk that redemptions may be subject to postponements, etc. If the investor is interested in benefitting from gold price changes, and if they are not concerned by other risk factors, purchasing ETFs and ETCs are certainly a proper way to put this strategy into practice. If, however, the investor wishes to hedge against the conspicuous risks that come with today’s world-wide paper money system, holding physical gold should be given priority.”
USAGOLD note: For regular readers of this page, these words from Degussa’s Dr. Thorsten Polleit will carry the ring of familiarity. It is a position we have advocated consistently and for a very long time.
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