Friday, July 17, 2009


So I wrote this piece a few days ago as soon as I read that Einhorn swapped his GLD for physical bullion, anticipating that it would bring out more cries about how the GLD is a scam. Not but a few hours later, SeekingAlpha published an article from J.S. Kim where he explained his skepticism about the GLD and SLV products. There are a plethora of comments, some explaining why he's incorrect, and some thanking him for illuminating the problems. SeekingAlpha publishes my posts too, and my GLD post generated some discussion/debate in the comments section.

I realized there is no reason for me to waste any more time arguing about the validity of the products, as I can sum it up simply. Some people prefer GLD, some people think you need to own physical gold. I left the following comment on both my own post, and Kim's:

" When you buy physical gold, you can get ripped off - right? whatever chance there is - someone could send me a brass bar plated in 24k gold - I'd have no friggin' clue. do you have a machine at home that verifies the gold you're buying is real gold?

Bottom line for ME, is that I think the chance of being ripped off by the GLD is much lower than the chance of being ripped off buying physical gold bars (not to mention GLD is much easier to trade.).

if the GLD trust gets sold to FlyByNight Securities, and they moved the gold to a warehouse in Secaucus, then the story/risk would change."

'nuff said.



Fred aka TwoBlackAces said...

Hey you have any plans to start a poker blog?

Kid Dynamite said...

hah - you mean resume my poker blogging? no - unlikely. i found quickly that once you progress in poker, almost every hand comes down to a matter of opponents, and they usually aren't worth writing about.

I will continue to blog about my Vegas exploits - including the Big Show's bachelor party coming up in a month

Vortex said...

and you don't play poker anymore

matt said...

There was an episode of X-Files in the '90s where they were poisoning Mulder's water with some kind of psychotropic and he started to think that Scully and others were in on some kind of bizarre conspiracy. He ended up punch Skinner in the face.

I always think about that when I hear the goldbugs claiming extremely wild conspiracies. I like gold. I looooove gold, but I don't see how people can be so vocal and public about things that they don't have ANY clue about (e.g., GLD being a scam).