Gold ETFs Have Rendered Gold Completely Useless and Worthless
Just another reason to believe in the supremacy of bitcoin
Once upon a time, gold had extraordinary power, globally. It was the legal tender for a number of countries across the world. When France lost the Franco-Prussian war to Germany(Prussia was its old name), Germany demanded reparations worth £200 million in gold from its vanquished neighbour. Until the dawn of the first world war, its power was absolute; Gold reigned supreme.
Fast forward to the heady days of commodities trading in the 70s and 80s, when you traded gold, you actually had the commodity delivered to you, as was stipulated by the terms and conditions of the trade.
These days, those rules no longer apply.
Why?
Because of what we know as gold exchange traded funds — gold ETFs
Gold backed exchange traded funds are securities designed to track the price of gold. If you happen to hold one of these, you don’t actually own the commodity.
How do they work?
Gold ETFs work just like any other form of ETF or ETC. They seek to track the price of a benchmark index (in this case, gold) and contain various assets that help them achieve this aim.
The simplest gold ETF, for example…