gold etf dangers

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paulm's picture
Joined: 09/05/2011
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gold etf dangers

Hi, I've been reading with interest the Turd's thoughts on holding physical versus ETF's, and his thoughts obviously worry, especially as most of my wealth is in gold within an allocated gold ETF.   I hold all my gold in and ETF within a tax efficient wrapper, an ISA.  In order to buy physical I would need to sell the ETF to fund the purchase - HOWEVER, in the process I will lose my tax free wrapper entitlement forever.  It would be great to get an opinion upon what I should do??

Edited by admin on 11/08/2014 - 06:31
Silver Lining
Silver Lining's picture
Joined: 08/30/2011
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Posts: 74
In your shoes...

I'd buy and hold physical.

If you can sell the ETF incrementally on runaways and then average into physical on the subsequent dips, you will negate some of the tax implications the swap entails.  For an easy example:  As gold approaches $1900 (right now a level of strong resistance) shave a little off; dump some of the ETF and buy physical with the cash as price forms a lower base.  Look to Turd's blog posts for help determining these levels, if you're comfortable with your own analysis.  Break this process into several transactions, as you see fit; and average in and out.  Many would choose to swap in increments equal to 20-25% of the value of your portfolio.  

Something to consider.  Hope it helps.

Kid Salami
Kid Salami's picture
Joined: 06/14/2011
Hat Tips: 425
Posts: 97
I know of ways to get phyzz

I know of ways to get phyzz with your pension - maybe they could help you out if you send them an email. Good luck.

Turk has something similar.

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