Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
INDIA COVID APOCALYPSE - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Silver Possession Versus Silver Trust – A Safe Alternative to Direct Possession?

Commodities / Gold and Silver 2013 Mar 15, 2013 - 03:10 PM GMT

By: Dr_Jeff_Lewis

Commodities

Value seeking investors are increasingly returning to the precious metals market. Furthermore, many of them will undoubtedly gravitate toward using the more conveniently traded alternatives to self-storing the metals.

The idea of taking physical possession of gold or silver currently seems almost taboo in the mind of the mainstream precious metals investor, although many alternative minded investors tend to see personal physical possession as the only safe option in the event of a financial collapse scenario.


With that noted, the various widely-traded precious metals funds have taken on the burdensome task of owning and storing physical metal for their investors.

Precious Metals Funds

Several well-known and widely traded precious metals funds currently exist. Some of the more popular include CEF, SLV (and other ETF's), and PSLV.

Eric Sprott is the outspoken portfolio manager behind PSLV and the current CEO and Chairman of Sprott Asset Management.  In essence, Sprott is taking the manipulative precious metal market shorts to task. He is practically the only one doing this, and he seems to be blazing a trail for others to follow.

Nevertheless, some people still worry about confiscation of his funds’ physical precious metals stocks by the government, but one would hope that Mr. Sprott and his well-financed legal team could defend their investors’ interests far better than any individual ever could.

Speaking of Confiscation

The important issue of confiscation is often on the minds of precious metals investors. If this is your primary concern, just ask yourself what would be easier: confiscation from individuals or stopping redemption?

In the most likely scenario, authorities would go after the low hanging fruit first, such as electronic accounts or perhaps 'convincing' investors to rollover their retirement accounts into annuities.

Meanwhile, the most insidious theft of precious metals confiscation will be widely cheered on by the mainstream financial media who currently clamor hands down for more money printing. Nevertheless, it seems doubtful that authorities will go after the precious metals directly.

Perhaps they will nationalize precious metal miners at some point, but too few individuals currently hold enough metal for the authorities to make a difference by going door to door to collect private stashes. Besides, they do not need precious metals to debase their paper currencies anymore, all they need is a rolling money printing press.

Of course, the backdrop for this situation is that Fort Knox has not been officially audited for decades, and Germany has been engaging in a well-publicized attempt to get its gold back from New York. Every day, the world is slowing turning away from using the U.S. Dollar as the world’s primary reserve currency.

The Best Precious Metal CEFs

PSLV and PHYS are most likely the best precious metal Closed-End Funds or CEF's on the market today. The silver fund, PSLV, is fully backed by 97% London Good Delivery Silver Bullion that is fully allocated and stored in the Canadian Mint.

Those funds currently seem preferable as investments to the precious metal Exchange Traded Funds or ETFs, SLV and GLD. These ETFs appear questionable investments to say the least, and they have been wrapped in a controversy that arises over an apparent conflict of interest because their warehouses are run by the same banks that dominate the short position at COMEX. Furthermore, redemption limits apply, and there is a minimum amount and time invested to be eligible.

Another downside, if already vested in the precious metals, is the tax hit associated with the liquidation of a profitable position. Nevertheless, it is easy to rationalize your profits potentially eclipsing that 'fee' when precious metal prices eventually return to their fair values.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

    Copyright © 2013 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in