In his opinion, investors should not fall into the fallacy that they can get the physical metal here. It is currently much easier for investors to acquire than real gold. That is why Gundlach warns of what he calls paper gold ETFs. These are only speculative vehicles. However, investors should not think that this gives them a specific amount of the precious metal. “What happens when physical gold is scarce and everyone wants to have their paper gold delivered?” Gundlach asked. “You can’t squeeze blood out of a stone.”
Most famous ETC gold
In Germany, the most famous gold ETC is Xetra Gold. Gold can also be delivered here. The SHAREHOLDER is currently not aware of any cases in which there have been problems. But Gundlach’s idea makes sense. Many gold traders are actually currently empty. If everyone now switches to paper gold in the form of ETFs (ETCs), then these ETFs (ETCs) must also buy the gold on the market. And here Gundlach obviously sees dangers that this could lead to problems.
Anyone who has actually held a gold coin or a gold bar in his hand will be captivated by the fascination and would prefer to acquire his gold physically anyway. Paper gold is of course easier and faster to trade – and the problem of storage is eliminated. But gold is also considered insurance. And in the worst-case scenario, you certainly don’t want to have to have them delivered. Therefore, nothing can replace gold in physical form.