which are better option to have gold exposure?

Discussion in 'Trading' started by mr double, Apr 6, 2011.

  1. bullion at kitko and store it under the matress (benefits: no storage fees,the real gold i can see) the spread right know around 90$ (7-8%) for1 oz coin
    but it charges 35 bps per annum (how much is it ?)
    andgold isat all time highs and this bullion trust down 5%
    whatswrong with it?
  2. zdreg


    be a big boy and call them.
  3. and whatshouldi ask?
  4. ok i just called them ,the management fee is1,35%
    the trust trades like etf (thou it hold 95% gold) it goes up anddown on investor sentiment so ifreal gold goes up it doesnt mean the trustwill follow it,i was told ifi believe the trust will go up i should buy it
    the question iswhy shouldi belive it?
    i guess itsbetter to buy real stuff through kitko
  5. by theway i am a proffesional forextrader if you like to lose your moneyes quikly pm me
  6. www.gainesvillecoins.com/

    Check them out they are great in terms of pricing amd do not charge to much over spot relative to other firms
  7. Just buy physical bullion - btw, Kitco is not a great price - try tulving.com or golddealer.com. Even better, if you can afford it, take delivery of a futures contract. An ETF is your second best bet - low annual fees and minimal slippage but you will get dinged bad for short term capital gains tax every year. Lastly, you can check out Perth Mint, no storage fees and some tax avoidance potential, but you'll lose about 4% between buy/sell.
  8. jprad


    If you're going to give someone advice it would help a great deal if you actually knew what you were talking about.

    First, any precious metal ETF is taxed at the collectible long-term capital gains rate, which is a maximum of 28% not the 15% that common stock is taxed at. So, if you're marginal tax rate is less than the maximum collectible rate then it's actually a better tax strategy to sell you precious metal holdings before they convert to a long-term gain since short-term gains are taxed at your marginal rate.

    Second, gold is just a store of wealth, it doesn't produce income. Because of that the gold ETFs have to actually sell some of their holdings every year to cover the fees used to manage the ETF. That sale is what creates the taxable event you mentioned.