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Degussa Market Report/Dr. Thorsten Polleit/2-13-2020
“To cut a long story short: In a period of a real crisis, in case of massive market turmoil, the investor would indeed be served best if and when he has direct access to physical gold. Purchasing physical gold is fairly easy, and storage facilities can be obtained at reasonable costs. It may well be that Gold-ETFs meet institutional investors’ preferences and match their regulatory requirements. For all other investors, however, there is no compelling reason why Gold-ETFs should trump holding physical gold.”
USAGOLD note: Dr. Polleit makes a point similar to the one we have made here on numerous occasions: Holding gold in the form of an ETF is not the equivalent to holding gold in the forms of coins and bullion. The first is a safe haven commitment. The second is a speculative bet on the price. We should mention that USAGOLD offers independent storage of gold and silver and that the costs are comparable to maintenance fees at most ETFs. At the same time, you can take delivery of your coin or bullion holdings whenever you wish. (Please call for details.)
Image courtesy of Degussa Goldhandel