If You Own Gold Through an ETF, You Don’t Actually Own Gold | Jim Rickards #Gold #GoldETF #Investing

If you own gold futures, or unallocated gold contracts with JP Morgan, or options on gold, or ETFs, you don't own gold. >> Let's finish with what an individual can actually control. I mean, for someone who owns gold, we kind of know the basics about protection that that ownership kind of gives them. Um, what's the distinction between owning the gold, being able to access it, and being able to sell it when you need to? >> Well, they they should all be the same. And I I tell people, if you own gold futures, or unallocated gold contracts with JP Morgan, or options on gold, or ETFs, you don't own gold. Um, you have a contract, okay? You have price exposure, you know, depending on the particular form. Um, if you want to make a short-term bet, and price goes up, you you win, you make some money. But you don't own gold. And when you most want your gold, when the situation is deteriorating rapidly, and um, stock market's crashing, and other things are are collapsing, and you say, "Well, now now's when I really want my gold." Uh, and you go to convert any of those contracts to physical gold. Some of them, physically, you can't. You cannot convert an ETF into physical gold. Uh, an authorized dealer can, but a retail investor cannot. Um, futures contracts, if you want to take delivery, good luck. Uh, if enough people do that, they will just suspend delivery. So, then they can do that. I've I've actually >> enough of a geek, I read all the rule books of all the exchanges. >> Every one of them has a rule saying that they can change the rules. Um, they just have a board of governors meeting, and you know, increase margin requirements, or give an order trade for liquidation only, meaning you can unwind or roll over, but you can't actually get your gold. And they say, "We're not a source of supply." Uh, unallocated gold forwards, they'll just send you a notice, saying, "Hey, we're terminating your contract. Here's your check. We're not stealing your profits." And you're like, "Wait a second. I don't want the money. I want to I want to stay in the contract. Sorry, you're out, etc. So, if you want access to physical gold, buy physical gold, put it in a safe place, hang on to it. Um, you know, if you need to sell it down the road for dollars, you know, you need a reliable dealer. That's uh um that's can be easier said than done, but uh but that's the way to actually own physical gold.