Something I have been worried about for some time. If you only have your shares in Gold stocks, the value of shares could end up at zero. Possibly why Gold stocks struggle.
Quote from article
"Paper Gold Will FAIL
Today what you think of the price of Gold is nothing but the price of paper Gold. "What is the difference between the two? We are still getting the metal at the price we see on the COMEX, are we not?", you may ask. Sure, but the key word is still. Even today you have to pay "premium" to the futures price to get physical ranging from about $50 for some coins to about $10 for bars. When it all blows, these premiums will skyrocket and the price of physical WILL decouple from the official paper price (this is what the guys at EverBank are scared s--tless about), as we already witnessed in 2008 � and this is the good scenario. Indeed, we may have a situation where there is no physical available at any paper price."
