Peter Schiff on record gold prices: I told you so!
With the decline of the world economy, many investors are flocking to the precision metal: gold. Many say buying gold is a safe haven from worldwide inflation and gold will keep its value over any paper money. Will gold continue to increase in value? Peter Schiff, president of Euro Pacific Capital, tells us more about the precious metal.
Commodity ETFs or ETCs
Commodity ETFs (ETCs or CETFs) invest in commodities, such as precious metals and futures. Among the first commodity ETFs were gold exchange-traded funds, which have been offered in a number of countries. The idea of a Gold ETF was first officially conceptualised by Benchmark Asset Management Company Private Ltd in India when they filed a proposal with the SEBI in May 2002.[23] The first gold exchange-traded fund was Gold Bullion Securities launched on the ASX in 2003, and the first silver exchange-traded fund was iShares Silver Trust launched on the NYSE in 2006. As of November 2010 a commodity ETF, namely SPDR Gold Shares, was the second-largest ETF by market capitalization.[24]
However, generally commodity ETFs are index funds tracking non-security indexes. Because they do not invest in securities, commodity ETFs are not regulated as investment companies under the Investment Company Act of 1940 in the United States, although their public offering is subject to SEC review and they need an SEC no-action letter under theSecurities Exchange Act of 1934. They may, however, be subject to regulation by the Commodity Futures Trading Commission.[25][26]
Exchange-traded commodities (ETCs) are investment vehicles (asset backed bonds, fully collateralised) that track the performance of an underlying commodity index including total return indices based on a single commodity. Similar to ETFs and traded and settled exactly like normal shares on their own dedicated segment, ETCs have market maker support with guaranteed liquidity, enabling investors to gain exposure to commodities, on-Exchange, during market hours.
The earliest commodity ETFs (e.g., GLD and SLV) actually owned the physical commodity (e.g., gold and silver bars). Similar to these are NYSE: PALL (palladium) andNYSE: PPLT (platinum). However, most ETCs implement a futures trading strategy, which may produce quite different results from owning the commodity.
Commodity ETFs trade just like shares, are simple and efficient and provide exposure to an ever-increasing range of commodities and commodity indices, including energy, metals, softs and agriculture. However, it is important for an investor to realize that there are often other factors that affect the price of a commodity ETF that might not be immediately apparent. For example, buyers of an oil ETF such as USO might think that as long as oil goes up, they will profit roughly linearly. What isn't clear to the novice investor is the method by which these funds gain exposure to their underlying commodities. In the case of many commodity funds, they simply roll so-called front-month futures contracts from month to month. This does give exposure to the commodity, but subjects the investor to risks involved in different prices along the term structure, such as a high cost to roll.[27][28] Aug 19, 2011Top Comments
All Comments (142)
Die Kleine ist echt süss !Und Peter seine Komments verfolge ich schon seit Jahren .
@flake452 I hope all these paper pushers still come on these comments when the dollar crashes.
Why do people think gold is so important and should be so expensive? It's just a metal. Seriously what the hell is wrong with humans. You can't eat it, you can't use it to survive, it just looks pretty. Why is it so important to people? Gah money is ruining this planet. I hope I get abducted by aliens.
peter schiff was right
peter schiff is right
and get better interviewers please :)
@polygamous1 dont tell me UNLESS YOU HAVE READ IT
CENTRAL BANKS COME RIGHT OUT OF THE TEN PLANKS OF THE COMMUNIST MANIFESTO
and as far as JESUS HE WAS SAYING TO THE MAN WITH TWO COATS LET H I M GIVE
TO HIM THAT HAS NONE ONE
HE was not saying LET THE SICK GOVERNMENT ORDER YOU AROUND AND SAY
WHAT TO GIVE
I DRINK RAW MILK GOVERNMENT KISS MY ASS
@singledad1234 u may want to view RING of POWER the Vatican city of London Washington District of Colombia states within a state But their alliegence does Not belong to the host country yet they expect n Get all the benefits the host country can provide they pay No taxes to the host country run them out as the Athenian peasants did to the rich landowners 2500 years ago shared the land between them according to each needs demogracy was born n Athenian civilazation flurished under a fair system
@singledad1234 what u mean communist manifesto? its Nothing communist about the fed just the opposide as for the money masters sure its about the Best video about the economic mess the world is in from the CAPITALIST BANKSTERS Give me a gun i'll rob a bank give me a bank i'll rob the world in every society you must have socialism (IE SOCIAL JUSTICE) or u will end up with Barbarism do Not hate social justice even Jesus said if u have 2 coats give one away He is God's son but also a socialist
Ditz needs to shut her mouth.
Posts
US Treasuries is just the trading vehicle to move money from stocks for short period of time to preserve capital. Period. There is no value in US Treasuries. Gold and Silver will go higher, but in time frame next few weeks I suspect we will see the reverse: Gold will move lower and stocks will go higher. BNY is charging clients to hold cash. Interest rate on 10 year Treasuries yesterday dropped below 2%. Mexico sold 100 year bonds. What sign people need to realize that bonds are in bubble?
@twin1010101010
nahh RT is cool; they're the only network that talked about Comet Elenin and Chavez' Gold recall