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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (22185)	11/21/2004 1:20:58 PM
From: ild	Read Replies (1) \| Respond to of 110194

Don't forget that capital gains on GLD are taxed as personal income. I don't know if you can write off losses on collectables.

To: orkrious who wrote (22185)	11/21/2004 9:16:47 PM
From: Wyätt Gwyön	Respond to of 110194

so the administrators of gld will be selling 40 basis points worth of gold each year to cover their expenses. so over time the gold held by the etf will be slightly less than "advertised," and this disparity will grow over time. but the point of this is that they are using the 40bp to pay for storage, insurance, etc, presumably at a much cheaper cost than most individuals could achieve, while also opening up the possibility to invest in IRAs. when i looked into such costs myself a couple years ago, i was told the costs would be about 1% (100bp), which i considered too high when combined with the very large spreads obtaining at the retail level. at 40bp, the combination of turnkey asset management, liquidity, convenience, and IRA investability is pretty attractive, i think.