Mikeoxenormous
Diamond Member
So back in the 1990s i bought some shares of the ETF GLD. GLD: Quote and summary for SPDR Gold Shares - MSN Money
At the time, i thought it would be a good way to buy more gold without the worry of transporting it to my house and possibly it could be lost. So i grabbed about 10,000 shares, and held onto it for about 1 year and while the price of gold went up, my share value didnt follow what the increase of the precious metals was. So i dug deeper into it, found out that GLD had to sell actual bars of gold that it was holding in reserve to back the price per 10 shares, to pay taxes at the end of the year. So actually over time GLD will either have to get more gold to cover the costs or GLD wont be worth the paper it is written on. I hold gold bars and coins, as he who has those in their possession have the actual assets , because if the economy tanks, GLD has the gold, you have again worthless paper.
Now lets look at crypto. There are bits out there in cyberspace that has a value attached to them, right now over $60,000. But again, who has the cash, if the economy crashes and those bits are lost in the web? Think about this shit....
At the time, i thought it would be a good way to buy more gold without the worry of transporting it to my house and possibly it could be lost. So i grabbed about 10,000 shares, and held onto it for about 1 year and while the price of gold went up, my share value didnt follow what the increase of the precious metals was. So i dug deeper into it, found out that GLD had to sell actual bars of gold that it was holding in reserve to back the price per 10 shares, to pay taxes at the end of the year. So actually over time GLD will either have to get more gold to cover the costs or GLD wont be worth the paper it is written on. I hold gold bars and coins, as he who has those in their possession have the actual assets , because if the economy tanks, GLD has the gold, you have again worthless paper.
Now lets look at crypto. There are bits out there in cyberspace that has a value attached to them, right now over $60,000. But again, who has the cash, if the economy crashes and those bits are lost in the web? Think about this shit....
What To Know About Cryptocurrency and Scams
Confused about cryptocurrencies, like bitcoin or Ether (associated with Ethereum)? You’re not alone.
www.consumer.ftc.gov