This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New Gold Fund Delivers the Goods

However, an investor may opt to arrange with Brinks or another armored car service to pick-up the gold and transfer it to another storage provider who will take and hold London Good Delivery bars. Currently this might cost $2500 per bar which isn't that costly given prevailing value of a bar at around $450,000. Or, if you're feeling strong enough, you can pick bars up yourself and toss them in the trunk of your mini. Um, bring your shotgun.

So what's the big deal about redemption and taking delivery anyway?

Because you can!

This brings peace of mind to those with more extreme views who question the validity of assets backing various ETFs currently so popular. For example the COMEX has recently changed physical delivery previously customary for most commodity contracts. They might issue a certificate for an ETF like GLD in lieu of delivery.

Other more extreme views prevail regarding this issue. Many, coin dealers and other vendors ("GOLD...Call Now!"), trash competitive products like current ETFs since they have coins to sell. They play to your fears of a financial Armageddon arguing you'll need to hold the metal in your hand to buy bread.

Also, given the financial roller-coaster infecting the global financial system, many fiduciaries are bound to insure clients and members that they have access to the "real deal".

Further, the cost of a 400 ounce bar is expensive, precluding delivery for most retail investors and making it an institutional investment.

What conditions would need to exist for investors to take delivery? A financial Armageddon where gold prices are soaring not falling. In that case, the cumbersome nature of the redemption process is a small inconvenience. Aside from taking comfort in the integrity of what you own, delivery is the ultimate attraction.

Won't all these gold issues affect gold prices? Not necessarily. However, supplies and new gold discoveries are lessening. There remains activity on both sides of the market. Many central banks, and the IMF recently, are selling while others (Russia, China and India) are buying.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
IAU $10.98 0.27%
PHYS $9.36 0.21%
GLD $108.82 0.11%
CEF $10.89 -1.09%
GTU $39.13 -0.22%

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs