I agree with haziqnet.

Plus the reality of paper gold is there is NO gold. Just numbers in the computer or in yr bankbook.

Right now mints are reporting record sales of gold and silver. Logically the price should go up (economic law). But the price of gold and silver go up and down ...doesnt make sense.  It makes sense only when you realise the prices are being manipulated.  The super rich want to keep us using paper currency but if gold price goes up, value of paper currency goes down. So they use the paper gold market to smash the price of gold down, hoping people will lose faith in gold and stop buying gold. Unfortunately this strategy didnt work.

At some point they will be unable to control the price and the paper gold market will fail. You don't want your money in paper gold at that time.

Google Mike Maloney's Hidden Secrets Of Money. Start with the Episode 1 video.

Unfortunately, I really do not understand the hack what haziqnet is saying.

As I have said in the silver thread. He is WAYYYYY out of his league.

The reason why you should keep physical is just as you said.

For Paper Gold,
ETFs and Banks do not really have the Precious Metals they claim they have
What would happen is that if one day someone decides to make a huge withdrawal from the Paper market and the Paper Market cannot provide, then there may be a decoupling between the Paper and the Physical Market.

Even if the Paper market remains, the premium of physical will go up.
The thing is that for Paper, if you are able to trade while the public still accepts paper , it's much cheaper in terms of fees. The risk is that if the day of reckoning come, your paper will be worth nothing.

Manipulation will happen until the point whereby public realize that paper is a hoax or if major countries like China announces that they decide to back their currency with precious metals.

Actually, they are kinda successful. The thing is by smashing price down, many people do indeed become fearful because if they had put this money in the stock market, they would have much higher returns. It can be pretty frustrating to wait for the metals to shoot up unless you are totally immune to the financial markets.
Even though this guy seem to be on your side, Lets not patronize him and encourage people with no knowledge to be posting without facts. To be honest, I have never seen a Precious Metals Dealer having almost zero knowledge and also without any professionalism.

spot gold has touch a very strong resistant at 1276, if it gathers momentum to break that resistant, then say hello to 1250 and may slip further down after..
someone with gold: best time to sell
someone with cash: best time to wait

why? because gold price is unpredictable...some gold investment promise to give their clients profit by monthly...just look at how the price of gold recently? try to think like this...if u buy ur gold at 150/g and currently gold price is drop to 120/g can u earn profit? nope right...so basically investment on gold r always on this basis buy, keep and sell...not the other way around...or by technique and fundamental also u can sell ur gold at fast even gold price when down...but all of this need physical gold...if u only buy paper gold means u need to hope the gold price remain upward to earn profit...in case u need money u need to sell some of ur gold in ur account...if the time u sell ur gold the price is down sure u already make a loss there...but if u have physical gold incase u need fast money u can pawn ur gold at any arrahnu outlets...that gold will remain ur for the next 6 month...if u still dun have money to take back ur gold either u sell the pawn letter to 3rd party or u paid the storage fee for the whole 6 month and u will get an extra 6 month before u take back ur gold...this is much safer and u can keep ur gold as long as possible until the right price / gold price is higher than ur purchased price to earn profit (how much is the ROI depend to ur sell price and ur purchased price)...many investor make loss by paper gold because they sell it back before the gold price is higher than their purchased price...that's why involve in physical gold is much profitable and safer than paper gold...other than that if u invest in private company for example Genneva they use paper gold actually u just pay the price for the gold but actually the physical gold never exist or if it does exist the amount of gold they have actually are far less than the total of investment involved in the scheme...its just like the ponzi scheme...

so u are saying if buy paper gold , when need money must sell at a loss if price is down. Yes i agree.
But if  buy physical gold, when price down, you need money , you can pawn the gold and you dont lose money.

but if someone got holding power, can wait for gold to go up, isn't buying paper gold or physical gold the same?
For goldsmith sure they prefer to buy physical gold. But for investors ,how to keep the gold is a problem, risky, how to verify it is genuine  etc, inconvenient when wanna sell back.

if u choose the right company to buy ur gold product u wont face this problem...no risk at all...the gold are already confirm genuine (u can verified it easily as the packaging is not seal) and u can sell it back to the company u bought the gold with the lowest depreciate. (For example public gold company)

so i think the advantage you mentioned for buying physical gold is only for when you need urgent money you can pawn it. that's all.

that's not the only advantage...if all people buying physical gold instead paper gold than one day gold price will not be easily manipulated the same with dollars...why? because the concept of demand and supply (gold is limited resources material)...We buy gold not only for investment but to educate ourselves and other people too...lastly because u hold the physical gold mean u r the one who manage ur own gold (profit or loss)...if u buy paper gold all the responsibility will be hold on the officer who managed ur investment either u loss or profit will not be a matter to him...

BTW, today when i checked the UOB Gold price, i see the difference between buy and sell price on the bank website has reduced to only RM2.10. It used to be more than RM3.00 , is this some error on the UOB website?

http://www1.uob.com.my/jsp/finance/fin_gia.jsp

I make profit selling at spot swiss pamp 100gm

I make profit selling at spot swiss pamp 100gm

The last point by guy3288 was good.

The thing is, unless you guys are buying physical gold at exactly gold's traded price, then, that's great. However, based on what I understand in Malaysia, the physical gold you can possibly buy from let's say, Poh Kong or take a cheaper retailer, Wah Chan, has up to 10-20% (or more) mark up on the price of gold when you buy from them..

Whereas, if you decide you trade and buy paper gold (e.g. via CIMB Gold Investment Account for e.g), you're looking at a mark up rate of only around 5%, and you can still go and withdraw physical gold with minimal costs.

There are of course, other sources of obtaining physical gold, especially with online retailers (not sure what's the mark up % like, please enlighten me).

Don't forget that dealing with big amount of physical gold is a pain, where you may want to consider a safe deposit box (and insurance perhaps?), which means extra costs on a periodical basis which can be pricey, for something that doesn't grow or doesn't increase in value (I don't mean relative value here) where like Buffett's saying, you can own it all you like, but it will still remain the same.

Anyhow, the main thing I'm getting to is, the ongoing logic is, the relative value of gold increase in times of uncertainty. I use gold as a hedge if I'm feeling more uncertain about the economic environment, and it forms as part of my portfolio. Like some form of "insurance"

Either way, I believe every body has their different styles of figuring out what level of investment and portfolio allocation works for them.

so u are saying if buy paper gold , when need money must sell at a loss if price is down. Yes i agree.
But if  buy physical gold, when price down, you need money , you can pawn the gold and you dont lose money.

but if someone got holding power, can wait for gold to go up, isn't buying paper gold or physical gold the same?
For goldsmith sure they prefer to buy physical gold. But for investors ,how to keep the gold is a problem, risky, how to verify it is genuine  etc, inconvenient when wanna sell back.

so i think the advantage you mentioned for buying physical gold is only for when you need urgent money you can pawn it. that's all.

BTW, today when i checked the UOB Gold price, i see the difference between buy and sell price on the bank website has reduced to only RM2.10. It used to be more than RM3.00 , is this some error on the UOB website?

http://www1.uob.com.my/jsp/finance/fin_gia.jsp