Four ETFs for precious metals will begin trading on Friday 30th/Jan 09.
ETPMAG -Silver 1/110th Oz
ETPMAU -Gold 1/110th Oz
ETPMPT -Platinum 1/110th Oz
ETPMPD -Palladium 1/110th Oz
and ETPMPM -basket of Gold, Silver, Platinum and Palladium
These have been launched by ETF Securities… who also run the ETF ASX code: GOLD
I am having a look at where the physical metals will be held and will post soon. I think that the metal will be held in the London Vaults same as GOLD.
Read about ETF Securities here
Australia’s gold bullion production has been in decline since 1997. I and many others think that Peter Costello the then Federal Treasurer started the Australian gold industry’s decline when he orchestrated 2/3 of Australia’s gold reserve in 1997. Following his action there was a massive decline in the gold producers confidence both here in Australia and overseas. To make it worse he sold the gold for around $330 and that has cost the Australian people around $5 billion dollars… an incredible act of economic vandalism that destroyed Australia’s wealth and set the skids under Australia’s third largest export earner….
P. Costello actions might have been precipitated or influenced by Gordon Brown who sold 400 tons of gold (67% of the UK’s reserves) for $275 in April 1997. Another act seen widely as fiscal folly. But whatever caused Mr. Costello to burn Australia’s gold industry he will be remembered by many in the mining industry as an idiot.
Read: Gordon Brown’s sale Folly by the Daily Reckoning Australia and a recent article: Gold sell-off proves to be expensive misreading 10/1/09< in The West Australian that examines Costello’s role.
Australia = yellow
I get a lot of email about gold and I have several Stockbroker friends with deep knowledge of Australian gold companies. I also own quite a few Australian ASX listed gold companies and some ASX:GOLD… so what you are going to read about on this blog is a day to day account of an Australian gold bug.
My first encounter with precious metal investing was in the late 1970’s. I was working in New Zealand and there was a lot of gossip about New Zealand devaluing its’ currency. I decided to invest my weekly wages in silver bullion and over a 6 month period accumulated quite a few kilograms of the silver metal. This proved to be a fortunate move as New Zealand did markedly devalue their currency and out of left field the Bunker Hunts also tried to effectively “corner” the silver market. Silver soared…. And I was hooked…