Buy Physical Gold For Security Beware Of Gold ETFs
July 20, 2012
By James O'Dell
Los Angeles, CA. – Morgan Gold - Gold and Silver prices are higher on Friday with the price to buy Gold at $1,583.60 an ounce, and the price to buy Silver at $27.38 an ounce, after an uptick in safe-haven demand on news from the European Union (EU) that Spain has cut its economic growth prospects, as Spain’s heavily indebted Valencia region calls for government aid, heightening investor concerns that Spain will soon be joining a growing list of euro region nations requiring an international bailout. The euro has hit record lows against several currencies on the news, while Spain's borrowing costs have soared back above the 7 percent level, considered by many analysts to be unsustainable.
Other news in the euro area has the European Central Bank (ECB) on Friday and “in line with established procedures,” announcing that debt issued or fully guaranteed by the Greek government will become “for the time being ineligible” for use as collateral in monetary policy operations as the buyback program will be expiring on July 25. The ECB says the Governing Council will re-assess the eligibility of Greek bonds, going forward, at the conclusion of the current review of Greece’s compliance with the terms of its bailout by the Troika of lenders, the European Commission (EC), the ECB and the International Monetary Fund (IMF).
Meanwhile, a recent report revealed that because most ETFs are nothing more than equity index vehicles, they can be based on borrowed assets, and there are no specific prohibitions that prevent the same asset from being used by multiple owners of that single asset. While some investors are drawn to precious metals ETFs by the low fees, few understand the problems that can arise when more than one person has claim to the same asset.
The principle downside to ETFs, apart from the fact that they are not backed 100 percent by physical Gold, is that they carry multiple claims and counterparty risks on their assets. As the stress level increases on the debt-based global financial system an ETF-based financial crisis could very well be the next bubble to burst. Protect your wealth and your retirement, during these times of economic and geopolitical uncertainty, by investing in physical Gold and Silver bullion.
Browse and buy from our large selection of Gold and Silver bullion coins and bars at Morgan Gold or let us start you in a new Self Directed IRA Today. Join our 38th Director of the U.S. Mint, Morgan Gold’s newest member, Edmund C. Moy, and add physical Gold to your IRA Today. Hear Mr. Moy, now representing Morgan Gold, speak on Gold and your retirement.
Allow our team at Morgan Gold to help you diversify your portfolio today, just call us Toll free at 1.800.585.1773. We assisted Mr. Moy in setting up his Gold IRA retirement account, and he liked us so much…he joined us. We hope you will too. Click here, 2012 Gold forecast, for Mr. Moy’s latest predictions for physical Gold.