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  • LongPicker LongPicker Apr 2, 2012 12:03 AM Flag

    OT: Rob McEwen blasts gold miners

    McEwen makes a good point here, but I think the mining shares will follow the POG once we see earnings a year or two frrom now.

    What jumped out at me from the article was this generalization:

    " trade funds (ETFs) which allow investors to buy physical gold."

    Mineweb should be careful here IMO. ETFs allow you to buy pixels on a screen that represent a value in your account. Last time I checked that's not physical Gold. I wonder what it would be like actually exchanging GLD for physical Gold? The GLD prospectus says that in order to redeem shares, you have to be accepted as "accredited" and exchange in lots not less than 500oz Gold. :-0

    • Wow, that's a major screw-up on the editors' part, longpicker. ETFs most definitely do not "allow investors to buy physical gold." In fact they do the opposite, they distort the market by allowing investors to gamble in the PM market without actually owning anything. It's like trading in pork bellies, only with hundreds of times more bellies traded than there actually exist pigs in the world. (Or, for that matter, on Wall Street.)

      As for McEwen, he is undoubtedly a pioneer in the industry, but as such he is also considered something of a renegade, and his outspokeness shouldn't be surprising. Like Sprott, he is only saying publicly what other insiders have no doubt been saying privately for months now, that the mining industry should stop rolling over for the market manipulators and start to take charge of its own destiny.