We’ve seen this warning from the World Gold Council on paper gold before, but it bears repeating …
There is approximately 78 times more “paper- gold” being held by investors than physical gold in existence on this planet that has ever been mined, according to the World Gold Council.
As this clearly implies that un- backed “paper-gold” accounts may be subject to the risk of default, investors should stay clear of buying paper-metal accounts from banks and make sure that any precious metal investment vehicle used does actually store the metals in a fully unencumbered, “un-leased” and physical form.
XX Sean’s take — paper gold is great for a trade, but for long-term investments, I prefer to get physical — physical gold and silver.
More on this topic
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Gold - Long Term Thoughts
(Gold Versus Paper, 9/20/09)
The No. 1 Way to Profit When Silver Upstages Gold
(Money Morning, 9/28/09)
7 Reasons Gold Will Surpass $2,500 - And Inflation Isn’t One of Them
(Money Morning, 10/21/09)
Gold’s Two-Faced Disappointment
(Investment U, 9/21/09)
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{ 15 comments… read them below or add one }
Can you give some examples of “paper gold” to those of us who may be unfamiliar? Does GLD fall into this category?
Thanks for writing. Yes, GLD is paper gold. It’s fine for a short-term trade. I am hearing more worrisome things about it for the longer term, but you never know if rumors are just rumors or if they are based on facts.
I acquired gold certificates through my bank. Are those certificates considered paper gold?
To survive this massive loss of value in the US dollar, should we be cashing in a significant portion of our dollars for other more stable economies?
To survive this massive loss of value in the US dollar, should we be cashing in a significant portion of our dollars for other more stable currencies?
How do you recommend storing physical gold?
SHERI; IF YOU ARE GOING TO INVEST IN A CURRENCY DO SO IN THE OLDEST ,STRONGEST - MOST RELIABLE +GOLD!. MARY MARSTON; STORING YOUR METAL . SAFTEY DEPOSIT BOX AT A WELL KEPT BANK SHOULD DO IT, BUT REMMEMBER THEY ARE NOT INSURED,,!
CHUCK; WITH ALL DO RESPECT,,,, YOU SHOULD ALREADY HAVE KNOWN THE ANSWER TO THAT Q BEFORE YOU MADE YOUR PURCHASE,, BE RESPONSIBLE WHEN IT COMES TO PROTECTIVE INVESTMENT MEASURES ,, OTHERWISE WHATS THE POINT..? KEEP IT PHYSICAL.!!
GOLDENFORCEJASON@GMAIL.COM - GREAT STUFF SEAN,,!!
Hi Sheri,
You asked a really good question. If you agree that the Dollar will lose even more value, then yes, it would only make sense to look at other Countries currencies for upward movement. I agree with Jason’s view, and Gold will be a “necessity” and not a “want.” Either one should help you protect your assets.
One more note: Buying into the stock market is a mistake. The TRUE fundamentals do not warrant a Stock Market Rally. Don’t forget the recent crash. Before this happened, we got the same hype from many EXPERTS. You need to understand that they(the experts) will talk about how good things are so that they can justify to their clients to buy or hold what they have!!! I hope this helps!!
4pfhBO I want to say - thank you for this!
Great site. Keep doing.,
Sir,
If gold is hold by person on bond, and as per the data it showes more papaer are iss.for gold, in above fact finaly on maturity gold price will down and person will loss his inv.as he has lost in share market, so in that case all central bank will make profit. is this a trick to make people fool?
I bookmarked this link. Thank you for good job!,
“There is approximately 78 times more “paper- gold” being held by investors than physical gold in existence on this planet that has ever been mined, according to the World Gold Council.”
The above is claimed to be from the World Gold Council (www.gold.org). I believe this to be very important and I agree this is an accident waiting to happen.
Problem is: I cannot find the above statement on WGC web site. I read claims from 80 up to 140 times (runtogold). but claims are not enough. I need something solid to back up this claim. Can you point me in the right direction?