Today, as I write this piece, it is Monday, August 16th of 2019. Precisely 48 years ago, on Monday, August 16th of 1971, the link between the US dollar and gold was severed. On the night before, in a historic television address, President Nixon announced the end of the gold backing of the US dollar.
In this part, Frank covers reasons 6-10 of why you should stay away from a Gold ETF like GLD. If nothing else, always read the fine print and make sure you are going into the right “kind” of precious metals for you.
ETFs are a popular investment tool. Particularly in the context of conventional portfolio management, ETFs are used regularly in order to obtain efficient access to a diversified allocation in certain markets and sectors. However, when it comes to gold, ETFs are not the first choice. Unless you’re a gold trader, buying and selling gold actively, you need to stay away from gold ETFs. Let me tell you why.