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
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

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

6 Critical Money Making Rules