Kevin Mahn, president and CIO of New Jersey-based Hennion & Walsh Asset Management, also thinks gold is due for a correction…”You have to remember that if you are buying the hard commodity it is less liquid than investing in an ETF or an ETN, which you could just dispose of in the markets at any point in the trading day,” he adds. “People think because they hold gold bars or coins that it is easy to dispose of, and they find that is not the case. You can get taken advantage of and in many cases have to discount the price to actually get a buyer to emerge. Then, if you add up all the custodial costs to actually holding the commodity, that is going to eat into any potential returns you have. Investors would be wise to do their due diligence whether they are buying the ETF or the physical commodity.”

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