{"id":114889,"date":"2017-10-17T10:04:36","date_gmt":"2017-10-17T14:04:36","guid":{"rendered":"http:\/\/countingpips.com\/?p=114889"},"modified":"2018-06-01T15:55:33","modified_gmt":"2018-06-01T15:55:33","slug":"the-harsh-truth-about-gold","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/10\/the-harsh-truth-about-gold\/","title":{"rendered":"The Harsh Truth About Gold"},"content":{"rendered":"
October 17, 2017<\/div>
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By WallStreetDaily.com<\/u><\/a> \"The<\/p>\n

\"LouisIs gold dead?<\/p>\n

Over the last three years, the SPDR Gold Shares ETF (GLD) has lollygagged in a sideways direction.<\/p>\n

I\u2019d honestly rather watch paint dry than analyze a gold chart.<\/p>\n

Given such an uninspired performance, I don\u2019t believe that gold warrants a major weighting in your portfolio.<\/p>\n

Of course, my assertion above constitutes sacrilege to any \u201cgold bug.\u201d<\/p>

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So let me explain\u2026<\/p>\n

Please don\u2019t confuse a gold ETF with owning physical gold.<\/p>\n

A gold ETF is a piece of paper that represents a loose claim (at best) on gold.<\/p>\n

Vaulted gold, however, is real \u2014 and can be called upon in any crisis event.<\/p>\n

Still, some folks will insist on owning proxies for gold, rather than actual<\/em> gold bullion.<\/p>\n

If you\u2019re among those who favor paper gold, don\u2019t simply buy an ETF.<\/p>\n

Below are three more intelligent routes into gold.<\/p>\n

An Alternative to Owning Gold<\/h2>\n

\"MartinWhile the Fed prints money like confetti, it\u2019s important to gain some exposure to gold.<\/p>\n

As Louis mentions above, ETFs are not a suitable way to do so.<\/p>\n

Gold ETFs suffer from a tracking error against physical gold\u2019s price. And that error can increase if the gold price zig-zags violently.<\/p>\n

But even physical gold has its drawbacks.<\/p>\n

Physical gold yields nothing. It incurs storage costs. And it\u2019s difficult to sell for full value when you need cash or your gold view has changed.<\/p>\n

So what\u2019s the best route into gold investing?<\/p>\n

Buying shares of carefully selected gold mining companies.<\/p>\n

Gold mines offer the following advantages over owning gold or gold ETFs.<\/p>\n