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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Message: ETFs the new CDO"s?

Exchange Traded Funds – all of the risks and none of the rewards

ETFs should not be owned by serious professional investors

ETFs offer none of the benefits of physical bullion ownership
 ETFs are no cheaper than owning physical allocated bullion stored and insured in secure vaults
 ETFs are not as secure as owning physical allocated bullion either via a bullion fund or an allocated bullion account
 ETFs provide no returns above the bullion price, only the likelihood of tracking at a discount or potentially failing to track the bullion price at all

ETFs do not provide 24 hour liquidity, unlike the bullion market itself

GLD (SPDR Gold Trust) and SLV (iShares Silver Trust)
 GLD and SLV shares not like equity or mutual fund shares

Bullion ETFs ‘track’ or ‘reflect’ the price of gold or silver

Investor undertaking ETF ownership has undivided interest in the
underlying assets, and not any allocable portion of a precious metal (no
specific gold is allocated to each share)

ETF assets are held by a passive trust, not accountable as a mutual fund

‘Like a stock’, but confer none of the rights

My note: This is a good file to send to friends that are not comitted to pms.

http://www.hindecapital.com/docs/hil_reports/Hinde Capital - Precious Metals ETF Alchemy Aug 12 2010.pdf

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