My 1st Million At 33 – yes, you can do it too

HongKong is going to keep its own gold in the newly built vault. When the party that keeps your “money” (in gold) can be insolvent, there is no guarantee that you will get your “money” back. I don’t know whether this news has anything to do with the two days of the vertical rise in precious metal & mining stocks.

The best way to buy gold is simply buying physical gold, and keep them yourself. Such process can be dangerous and susceptible to theft, but in my opinion, it is far better to have these banking thieves and liars taking possession of your gold. The same is true for silver.

I have looked over the prospectus for GLD, SLV, SIVR. There is also an upcoming SGOL to compete against GLD. All of the prospectus have extremely limited legal rights for your purchased shares in their trust. Most of the time, your legal rights stop at the Trustee. Trustee can deal with Custodian, but not sub-custodians who may keep your gold/silver. It is extremely difficult legally to recover your gold/silver through layers of legal non-protections down to sub-custodians. And guess what, at every level, from Trustee, Custodian, down to Sub-custodians, all of them are big banks which can become insolvent in the event of derivative crisis.

The primary reason to buy gold/silver is to have “insurance” against financial calamity. Leaving your gold/silver to these big banks who have recently gone to the brink of failures defeats the sole purpose of buying gold/silver. You won’t know who may go belly up, shorting nakedly in gold/silver futures, until some bank really fails.