Forums General Discussion Paper gold vs. physical gold??


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  • Are CeeAre C Newbie
    Post count: 2

    I want to hold some gold in my portfolio. I know I’m not supposed to do this as a Boglehead! But I’m going to use some “gambling money” to bet that gold will rise substantially in the next few years.

    Has anyone done a deep dive into if the criticism’s of paper gold (etf’s) are correct? I guess the main critique of gold etf’s is that you have “counter party” risk with etf’s and are exposed to the “banking system”, as the custodians and sub-custodians of the etf are big banks.

    Most know GLD and IAU etf’s. But there are also other etf’s which allow you to redeem your shares in gold at any time and some that have different structures that are apparently safer than GLD and IAU. Some etf’s I started researching:

    -VanEck Merk gold trust (OUNZ) (can redeem shares for physical gold as small as 1 ounce)
    -Sprotts ETF (PHYS) (can redeem shares for gold)
    -Aberdeen standard physcial swiss gold shares (SGOL) (I guess the only thing different with this one vs. GLD/IAU is stored in Swiss vaults)
    -Granite Shares Gold Trust (BARS)
    -Perth Mint Physcial Gold (AAAU) (can redeem shares for physical gold, stored in vaults in Australia, etf is guaranteed by the gov’t of Western Aus.)

    Then you also have places like Bullion Vault that appear to be a one stop shop to buy, store, insure physical gold.

    Any one done a deep dive on all this and can give me their thoughts?

    Tim DTim D Newbie
    Post count: 1

    You can register / provide id and get an account at the Perth Mint in Australia. You can own gold in their online depository program which is effectively ‘paper gold’. I did a year ago and just checked today. Its up 17% and thus very happy with my investment. All gold purchased is guaranteed by the western australian state govt. The perth mint even guarantees to buy it back from you at market price when you want to sell.

    hope that helps

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    Are CeeAre C Newbie
    Post count: 2