Someone smart told me always buy the metal not the paper when it comes to precious metals.
And when you think about it that makes a heap of sense.
The risk seems huge when you give a business your money and in return you get a piece of paper stating that you have part ownership in a chunk of metal.
So I buy some ‘shares’ in a chunk of gold.
Well – where is the gold? Can I visit it? What happens to the gold when your business collapses? How do I know you are not selling the chunk of gold I own to someone else? Do you actually own the gold?
Silly questions? Hmm.. not really as every question is actually based on published events where the answer was not good for the investor.
Suff.co.nz provides a fantastic story of why I would never-ever get into precious metal trading => Bullion trader was coke addict
This is also why I like buying property (full ownership of course). You can see what you have brought.
Source-> http://www.marksinvestingblog.com/20...s-coke-addict/
Cheers
Marc
And when you think about it that makes a heap of sense.
The risk seems huge when you give a business your money and in return you get a piece of paper stating that you have part ownership in a chunk of metal.
So I buy some ‘shares’ in a chunk of gold.
Well – where is the gold? Can I visit it? What happens to the gold when your business collapses? How do I know you are not selling the chunk of gold I own to someone else? Do you actually own the gold?
Silly questions? Hmm.. not really as every question is actually based on published events where the answer was not good for the investor.
Suff.co.nz provides a fantastic story of why I would never-ever get into precious metal trading => Bullion trader was coke addict
This is also why I like buying property (full ownership of course). You can see what you have brought.
Source-> http://www.marksinvestingblog.com/20...s-coke-addict/
Cheers
Marc
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