by David Brady
Last week, I covered Goldman’s purchase of the Perth Mint’s ETF. The latter allowed holders of the ETF to readily convert their shares into physical Gold. While Goldman kept most of the characteristics of that ETF in place, it changed the key one—that physical convertibility. Now it’s just like any other ETF. Why, and why now? Perhaps because the Perth Mint is running out of the physical metal or Gold is just becoming more scarce in general. Perhaps Goldman wants to delude the peasants into thinking they own Gold when in fact it is just another cash-settled ETF that tracks the price of Gold. One thing is for sure, Goldman would not be buying an ETF if demand was going down just to earn a paltry 0.18%. Simply put, this is bullish Gold medium and long-term, imho.