All things STOCKS

#5,429
#5,429
Rasputin_Vol said:
And what laws might I violate if I decide to start an ETF with nothing underlying or backing it?
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None. There's nothing "backing" stock ETFs either if your definition of "backed" means that you can receive something physical for your shares in it. And many of the risks it mentions are inherent in all ETFs regardless of what they are designed to track, like counterparty risk. GLD is a lot like owning gold futures.

Besides, if you really think that being able to obtain your physical gold bars will save you or preserve your purchasing power in a true "s**t hits the fan" situation, I've got some oceanfront property in Arizona to sell you too.
 
#5,430
#5,430
Loaded up on LODE on the PM dip. 1050 shares at an average of $1.26. Hoping for a bounce back up to the $1.50+ range.
 
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#5,432
#5,432
Welp, didn't secure profits on LODE. It fell quick in the 10-15 min window I was actually doing work. Went from a $100+ gain to a $100 loss in a span of about 15 min. Probably gonna take an L unless we get a afternoon bounce. SL @ $1.10
 
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#5,434
#5,434
05_never_again said:
You totally missed my point. The people holding GLD know all of those things you mentioned and buy it anyway. They aren't diehard gold bugs.
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Then how is the ETF valued?

Or for that matter, how is any ETF valued if you don't necessarily have to possess the commodity or sector stock?
 
#5,435
#5,435
Rasputin_Vol said:
Then how is the ETF valued?

Or for that matter, how is any ETF valued if you don't necessarily have to possess the commodity or sector stock?
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What the market will pay for it. Just like anything else. And the trust actually does own physical gold, by the way. The fund strikes a NAV everyday, just like any other ETF or mutual fund, that is driven by the price of the underlying assets.

It's just that its shareholders don't have physical redemption rights, which is why gold bugs don't like it. Nor should they, if what they are really after is the ability to possess the physical gold. GLD is paper gold (you're buying shares in a trust, and the trust owns the physical gold). If I wanted to hold the physical gold, not just get exposure in a 401(k) to gold, I wouldn't own GLD either. If I own SPY, I can't "redeem" my shares in it for shares in each S&P 500 stock either. It's not how ETFs work.

Is GLD Really As Good As Gold?
 
#5,436
#5,436
Rasputin_Vol said:
Then how is the ETF valued?

Or for that matter, how is any ETF valued if you don't necessarily have to possess the commodity or sector stock?
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You might want to look at your source. Their reputation is not the best. I read a couple of years ago that they are in Bulgaria, and tend to make things a conspiracy .

Would you want The ETF to stockpile the gold in their facility or a bank storage facility? Which would be considered the better internal control?

But, unfortunately the bullion business is one with a history of much fraud. You should be skeptical as you seem to be. I believe the authors of the article you linked are going after the wrong people. Do a search of gold and silver fraud since 1980.
 
#5,437
#5,437
05_never_again said:
What the market will pay for it. Just like anything else. And the trust actually does own physical gold, by the way. The fund strikes a NAV everyday, just like any other ETF or mutual fund, that is driven by the price of the underlying assets.

It's just that its shareholders don't have physical redemption rights, which is why gold bugs don't like it. Nor should they, if what they are really after is the ability to possess the physical gold. GLD is paper gold (you're buying shares in a trust, and the trust owns the physical gold). If I wanted to hold the physical gold, not just get exposure in a 401(k) to gold, I wouldn't own GLD either. If I own SPY, I can't "redeem" my shares in it for shares in each S&P 500 stock either. It's not how ETFs work.

Is GLD Really As Good As Gold?
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Again, you missed the point. It may have gold, but it doesn't have enough to cover the number of contracts written.
 
#5,438
#5,438
Rasputin_Vol said:
Again, you missed the point. It may have gold, but it doesn't have enough to cover the number of contracts written.
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You believe in an unfalsifiable conspiracy about it then, as gold bugs are prone to do. So there's no point in even having a discussion. At first you claimed it owned no gold directly (which isn't true), now you claim it doesn't have enough.
 
#5,439
#5,439
05_never_again said:
You believe in an unfalsifiable conspiracy about it then, as gold bugs are prone to do. So there's no point in even having a discussion. At first you claimed it owned no gold directly (which isn't true), now you claim it doesn't have enough.
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It was an exaggeration. Lighten up. The point is that they don't have nearly enough gold. How about that?
 
#5,445
#5,445
Freak said:
Agree. And we still have 10% unemployment. The markets are definitely looking way ahead.
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I worry about the psychology of this - a global pandemic, while creating an incredibly scary one-month selloff, ultimately only paused a new high by about 6 months. The corona crash has a serious 1987 crash feel to it now. But it took the market something like 12 or 14 months to set a new high after that crash - this is just a few months.

There are a ton of people out there who can't help that the market is invincible - not that it never goes down (because it clearly does), but that every single dip is a great buying opportunity. Markets aren't "supposed" to work like that. Then again you can argue we don't have a true market in a lot of ways.
 
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#5,447
#5,447
VolAllen said:
I loaded 1,000 more SAVE today. $20’s coming back soon to that one. TSA will hit 1,000,000 within the next few weeks.
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You must be more bullish than normal. I figure you’re averaged less than today’s $17 price range.
 
#5,449
#5,449
Freak said:
You must be more bullish than normal. I figure you’re averaged less than today’s $17 price range.
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Ive been in and out of it so many times, my average is literally $17 now lol. I’ve probably made close to 100 trades just in Spirit alone.
 
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#5,450
#5,450
05_never_again said:
I worry about the psychology of this - a global pandemic, while creating an incredibly scary one-month selloff, ultimately only paused a new high by about 6 months. The corona crash has a serious 1987 crash feel to it now. But it took the market something like 12 or 14 months to set a new high after that crash - this is just a few months.

There are a ton of people out there who can't help that the market is invincible - not that it never goes down (because it clearly does), but that every single dip is a great buying opportunity. Markets aren't "supposed" to work like that. Then again you can argue we don't have a true market in a lot of ways.
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Interest rates are just so low. I think there are a lot of people in the market because they have no other choice.
 
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