Does anyone think it’s likely and if so how is it going to manifest itself? What does it mean for paper gold holders?
I suppose problem with paper gold is that during a lockdown SHTF scenario you might find trading the paper difficult
Is that the only explanation for a decoupling?
There may also be a fear that some gold ETFs or similar don’t actually hold gold, but merely try to track its price l, given the way the stock market is going there a risk that some of these providers will go belly up ?
There’s always that risk with these types of derivatives — AFAIK the point of an ETF is it doesn’t hold gold.
I wouldn’t say that, the point of an ETF is that you can trade it quickly on an exchange. It’s much easier to move full bars of gold bullion virtually around in massive safes, than it is to have investors holding on to a few thousand of gold at home with the increased transport costs and the dealer network involved
You do get physical gold ETFs https://www.ishares.com/uk/individual/en/literature/kiid/kid-ishares-physical-gold-etc-gb-ie00b4nd3602-en.pdf
Traded in GBP or USD?
I’m looking at GLD, IAU, SGOL, GLDM, BAR and AAAU.
That one’s in USD - but given the exchange rate fluctuation, that seems to be working in my favour right now.
Exactly. GBP is tanking so hard gold isn’t even falling compared to it!