In Germany is a shortage of physical gold

[Ulli]

In Germany there is a shortage of physical gold. Only "gold-in-paper" (I think this is a paper that gives you the right to a get a certain ammount of physical gold from someone) is enough available.

Now the price of physical gold is already 14 % higher than the price of paper-gold. So Dr. Krall. He added this he never expierienced this before.

I think it can really be dangerous, if more and more people asking for physical gold.

What is if the people that owe the gold, because of the papers, will be not able to get some real gold if asked to deliver?

[Zelhar]

But silver is cheap relative to gold and you can still buy physical silver right?

What is if the people that owe the gold, because of the papers, will be not able to get some real gold if asked to deliver?

The gold certificates like GLD are supposed to hold physical gold reserves in the same amount of the certificates issued. They are a legitimate financial instrument for tracking the price of gold. But if you are preparing to the apocalypse or if you are just interested in buying physical gold this is not a good option. On the other hand if you hold physical gold you can use options on the SPDR to hedge the worth of your physical asset.

[Ulli]

But silver is cheap relative to gold and you can still buy physical silver right?

The gold certificates like GLD are supposed to hold physical gold reserves in the same amount of the certificates issued. They are a legitimate financial instrument for tracking the price of gold. But if you are preparing to the apocalypse or if you are just interested in buying physical gold this is not a good option. On the other hand if you hold physical gold you can use options on the SPDR to hedge the worth of your physical asset.

Yes, Silver is available. But Gold only with an "physical gold addition" of 14 percent if you get it at all.

Zelhar, if the certificates are backed up by physical gold, is this spread of delivery issues, or is it because some wicked people have made i.e. two certificates on one gold unit and now have first to look where they get the missing gold?

[Zelhar]

I think at least SPDR GLD hold physical gold in the same amount issued, it's not like a banking system with fractional reserves. The gold is stored in London and it is all supposed to be supervised. There is a cost of ownership which they charge as holding fee I think. As far as I can tell these things provide a good and liquid way to track the price of gold. Some big hedge funds manager like John Paulson hold this certificates (like for years not just short term trading).

Yes, Silver is available. But Gold only with an "physical gold addition" of 14 percent if you get it at all.

Zelhar, if the certificates are backed up by physical gold, is this spread of delivery issues, or is it because some wicked people have made i.e. two certificates on one gold unit and now have first to look where they get the missing gold?

[Ulli]

Thank you. I understand.