straight from the mouth of goldman sachs ..., page-2

SP,

It's pretty clear that investors have more faith in gold ETF's than they do in gold mining scrip.

They're both very similar really - being paper, and generally no divvy. So you may as well choose the one that won't dilute through share issues.

You may think that ETF's are diluted and mining shares aren't. But the market thinks otherwise.

From your articles:" Investors have been increasing holdings in exchange-traded products physically backed by gold to bet on gains in prices for the precious metal, without accepting the potential negatives that come with holding company shares."