via Toronto Star - Preferred ETFs

Preferreds aught to be the vehicle that GBN.V should be looking for, without getting involved in unworkable cash for bullion deals, by lenders that assume you will be taking a haircut.

A gold miner paying out in terms of bullion is at a grave disadvantage considering that a devaluation against bullion for all currencies might occur.

ETFs that deal in preferreds look to hold them for clients, and are sought out in a stock market decline.

Banks, pipelines issue preferreds as a way of raising capital. I would say that this vehicle should be the way to go, should gold become a means of exchange and part of Central Bank policy.

Right now, gold bullion is perceived as a volatile commodity with associated risk. GBN.V for one will have excellent margins despite price swings, but should price risk change with bullion moving to foreign exchange in futures markets, then that reduces bullion price risk.

GBN.V would be self-reliant, rather than get scalped by so-called interested parties with an agenda to make business fit solely within the Austrian model.

The Star

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-F6