Thursday, August 18, 2016

ALERT: Early Signs The Public Is Becoming More Involved In The Gold Market

I'm stoked that mainstream retail investment firm Charles Schwab issued a fairly comprehensive letter on gold investments.  However, it's understandable they offer information that is equities-centric, as they sell mostly stocks and bonds to retail investors.  In my opinion, they don't delve deep enough into the hidden dangers of un-allocated ETF's.  They don't even address the potential of markets freezing up, or issue a warning about counterparty risk.  Probably because Schwab is part of the global financial system and would be adversely impacted by a meltdown just like any other financial institution.

For instance, what happens to client accounts when investment firms collapse.  Would direct registration of share certificates be the only reliable means of owning shares of a publicly-traded company?

Also, the article barely mentions the possession of physical gold bullion as the safest vehicle of ownership.  Again, this omission is not surprising.

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