Tuesday, October 5, 2010

Safest Three Gold and Silver ETFs CEF, GTU, PHYS

Did you know that the GLD and SLV gold and silver ETFs do not have an independent audit of their gold or silver supply? That means that it is possible if people demand delivery of their gold and silver and there is not enough backing the paper, certain funds could default and leave the investors SOL. Per James Turk of GoldMoney.com, there are only three ETFs he trusts where a third party independent auditor comes in to audit the physical gold or silver supply, including melting down bars if there is some sort of discrepancy. In fact he feels even the central banks and Fort Knox if audited would be shown not to have as much gold as one would expect...

1. CEF - Central Fund of Canada  - Best price action, combines both gold and silver
2. GTU - Central Gold Trust
3. PHYS - Sprott Physical Gold Trust  - Terrible price action though, not moving!  Worst choice in my view lol

Scroll to 2 minutes 10 seconds in to the following video, for the audio reference so you can hear it for yourself: