Comments on: A New Swiss Gold ETF http://crawlingroad.com/blog/2009/10/07/a-new-swiss-gold-etf/ The Permanent Portfolio, Investing, Finance and Random Thoughts. Sun, 29 Jan 2012 01:01:01 +0000 hourly 1 http://wordpress.org/?v= By: Kevin http://crawlingroad.com/blog/2009/10/07/a-new-swiss-gold-etf/comment-page-1/#comment-589 Kevin Wed, 07 Oct 2009 21:53:44 +0000 http://crawlingroad.com/blog/?p=2263#comment-589 The most challenging aspect of implementing the permanent portfolio has to do with the gold allocation. Using ETFs such as GLD and now SGOL provides an easy to use and liquid way to invest in gold, but it also opens the door to some level of 3rd party risk --- you do not directly own allocated gold. IMO, one of the main reasons (in addition to the portfolio diversification) to own gold is to limit risk, an insurance of sorts in case of financial or currency crisis --- While SGOL puts one in gold stored in another country, it still leaves one open to 3rd party risk. I would suggest exploring firms such as GoldMoney and Bullion Vault as a less risky vehicle to personally own gold outside of your own country. It limits 3rd party risk because you directly own the allocated gold. It is stored in vaults in Switzerland. While it may require a little more work to set up than simply buying an etf, it provides direct allocated ownership which an etf does not. That peace of mind is worth its weight in . . . drum roll please . . . gold. The most challenging aspect of implementing the permanent portfolio has to do with the gold allocation. Using ETFs such as GLD and now SGOL provides an easy to use and liquid way to invest in gold, but it also opens the door to some level of 3rd party risk — you do not directly own allocated gold.

IMO, one of the main reasons (in addition to the portfolio diversification) to own gold is to limit risk, an insurance of sorts in case of financial or currency crisis — While SGOL puts one in gold stored in another country, it still leaves one open to 3rd party risk.

I would suggest exploring firms such as GoldMoney and Bullion Vault as a less risky vehicle to personally own gold outside of your own country. It limits 3rd party risk because you directly own the allocated gold. It is stored in vaults in Switzerland. While it may require a little more work to set up than simply buying an etf, it provides direct allocated ownership which an etf does not. That peace of mind is worth its weight in . . . drum roll please . . . gold.

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