What's the difference between paper gold and physical gold?

[AGR999Member]

So guys, as the title suggests, could you give me some of your insights
here? What do you think has really higher costs and great for investments?

[balzMember]

First one is a promise on paper and the second one is real.

[Marchas45Member]

Thier are more paper gold contracts than there is gold, it’s a gamble not an investment, so when the paper market crashes, (not if) thier goes your paper gold. Buy Physical it’s nicer to look at and it won’t burn maybe melt if hot enough. Lol

But then again this is a Silver Forum so I have to stick up for my Silver and say hands down it’s a better Investment.

[OneTinSoldierMember]

What Marchas45 said. It’s called “naked short selling”. It’s like what’s called Fractional Reserve Banking.

When someone gets in 5,000 ounces of Silver, and says… here I owe you 5,000 ounces of Silver. Then another person comes along and he goes, here, I owe you 5,000 ounces of Silver. Then another person comes along and he goes, here, I owe you 5,000 ounces of Silver. And he does this, let’s say, a total of 20 times.

By giving these 20 people that came along a piece of paper that says he owes them 5,000 ounces of Silver, he is now leveraged 20 to 1(20:1).

What happens if all these people want their Silver all at once?

The only way that you can know for sure that this is not happening to you, is to have and hold the real thing, Physical Silver.

If you don’t hold it, you don’t own it. Just ask former MFGlobal customers.

[AGR999Member]

Yes, Marchas45, it is nicer to look at.. lol, but yeah, just thought there is forums intended for Gold, not noticing that early, the whole thing is about Silver,..hehe..

hmm, OneTinSoldier, i have heard about that idea once, telling that if you don’t hold it, you don’t own it.. but your explanation is fair enough to make things clear for me. thanks..=)

[OneTinSoldierMember]

You’re welcome AGR999.

I guess I didn’t really notice I was in the Gold section of the forum. Same thing could be said for either Gold or Silver. For some reasons, I think the Anti-Gold Anti-Silver bullion banks have a little harder time manipulating the price of Gold than they do Silver though. Might be because Gold is usually looked at as a monetary metal before Silver, at least in the ritzy-rich wealthy crowd.

[4 ozMember]

lol
its like this:

 

 

Friends wife (paper) suggested he get himyself one of those penis
enlargers…. so he did ….(Phyzz) she’s 21 and her
name’s Jodi.

[silverbullionMember]

Paper gold either gives you a paper cut and/or sore eyes, while physical gold is heavy and might break your foot in half if you drop it.

[marketwatchMember]

hey physical gold is the actual assets… which can be kept as assets or reserves against a country’s economy. whereas the paper gold is game of numbers… just like  stock exchange

[jseanMember]

I think Physical Gold means Gold Coins, bars, teeth, plate, cups
and
Paper Gold means Paper saying u have gold but the gold is not in your hands.

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