Maleeha Bengali, founder of MB Commodities Capital, joins TheStreet to explain the best way to invest in gold.
Category
🥇
SportsTranscript
00:00Here in America, we have this big chain called Costco, and it's selling gold bars.
00:05And so what do you think about consumers actually going to a retail outlet and buying gold bars?
00:11Yeah, you know what, physical gold is one of the best ways to invest in gold because
00:15the ETFs have another issue.
00:17You could be long the GLD, for instance, or another ETF that's not backed by physical
00:21gold.
00:22And there could be a situation like we saw back in 2008, you get a systemic crisis, these
00:26ETFs fall, even the gold price goes up.
00:29So imagine you're sitting there on an ETF and you're like, wait, I'm not making money.
00:33Physical always holds value.
00:34So retail investors, you can trade the ETFs, but make sure you have some physical stored
00:38in the vault somewhere.
00:39But it's hard to unload a gold bar.
00:40Yeah, that's true.
00:41It's a very good point.
00:42But you know, back in the day, people store them in the mattress or whatever have you.
00:45But that's why Costco's bars are selling up because there's a bit of a premium even on
00:48silver as well.
00:49So I can't say you put 100% of your wealth in that because it's hard to do that.
00:53But get exposure to ETFs, but also keep some gold bars around.
00:57So for you, actually going to Costco is not a laughing matter.
00:59It's a real deal.
01:00It's not a laughing matter.
01:01It's real.
01:02We own physical gold.
01:03And in London, we do as well.
01:04There's a bit of a premium on that.
01:05But that never loses value to what gold price is.
01:07The ETFs can disconnect because there is a trade between the financial and the swaps,
01:11right?
01:12And most people don't realize the risk.
01:13And at the end of the day, you are taking a risk.
01:15If the counterparty gets defaulted, sure, you can lose out.
01:18I mean, that's a very small chance, right?
01:20But there is an inherent risk to think about.
01:21So physical is always the best way to trade.
01:27Yeah.
01:28Yeah.
01:29Yeah.
01:30Yeah.
01:31Yeah.