I’m not understanding why some people on here view liquidity of holding gold as a problem?
What am I missing here?
Take my E*TRADE account, which inludes brokerage, savings, checking, retirement accounts.
I move say $10,000 from savings into brokerage. I buy $10K in gold via the ETF (Symbol: “GLD”). Wow, that took a total of sixty seconds.
Three years later. Wow, those same gold ETF shares are worth $30,000.
Oh, I need some grocery money. OK fine.
Sell a few shares of “GLD” then transfer proceeds into checking. All online. Wow, that took another sixty seconds.
Ten minutes later at the grocery store, whip out my E*TRADE ATM card and pay for groceries with dollars that were gold only twenty minutes ago.
I don’t see the problem!
And please don’t give me that blather about “Oh, I don’t trust the gold ETF, blah blah blah. They’ll go bankrupt!”
Hello. They have a gold warehouse. When you buy their ETF, they go buy gold essentially matching their net monetary inflows/outflows. They have over 700 metric tons of gold in a warehouse matching their ETF deposits.
OR you could buy physical gold. Now you gotta Fed Ex that stuff back to your broker, such as KitCo in order to redeem it into dollars.
But again, you are causing yourself inconvenience because of trust issues. Why not just let Kitco hold it for you?
