Zero Hedge posts an interesting article, complete with video and transcripts from the CFTC hearing, on the gold and silver markets. Eye opening stuff. For the record, I don’t like gold in an investment portfolio, though I have owned bullion ETF shares in the past. There are numerous allegations of manipulation. Frankly, “gold bugs” make me nervous. They don’t act or sound so much like normal investors, as conspiracy theorists.
This is one of the few areas in which I agree with Ken Fisher: stay away from gold backed securities (silver is even worse). If you must own gold, own the physical metal. Shares of miners tend to trade more like materials stocks and should be regarded as such. I do like a basket of commodities futures as a part of a diversified portfolio, and this can include precious metals, but gold and silver are dangerous for the average investor.