Quixote2
18th October 2011, 09:45 AM
snipped from: http://www.forbes.com/sites/investor/2011/10/12/a-canadian-closed-end-gold-and-silver-fund-with-a-tax-break/?partner=yahootix
There is a better way to invest in gold and silver than the popular—but I believe structurally unsound—ETFs like SPDR Golld Shares (GLD (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=GLD)) and iShares Gold Trust (IAU (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=iau&tab=searchtabquotesdark)). You can easily buy gold and silver through a vehicle that is backed by actual gold and silver rather than derivatives, swaps, and other esoteric paper promises. Consider Central Fund of Canada (CEF (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=CEF)), which is, first of all, a closed-end mutual fund, not an ETF. It holds actual gold and silver bullion. The metal is audited, securely stored, and owned by the shareholders of the fund.
Your investment in Central Fund of Canada will give you an ownership split approximately 50/50 between gold and silver. A further advantage is that when you sell, you will not be taxed unfavorably. Closed-end funds are taxed as equities while precious metal ETFs are taxed as commodities at a higher rate.
There is a better way to invest in gold and silver than the popular—but I believe structurally unsound—ETFs like SPDR Golld Shares (GLD (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=GLD)) and iShares Gold Trust (IAU (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=iau&tab=searchtabquotesdark)). You can easily buy gold and silver through a vehicle that is backed by actual gold and silver rather than derivatives, swaps, and other esoteric paper promises. Consider Central Fund of Canada (CEF (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=CEF)), which is, first of all, a closed-end mutual fund, not an ETF. It holds actual gold and silver bullion. The metal is audited, securely stored, and owned by the shareholders of the fund.
Your investment in Central Fund of Canada will give you an ownership split approximately 50/50 between gold and silver. A further advantage is that when you sell, you will not be taxed unfavorably. Closed-end funds are taxed as equities while precious metal ETFs are taxed as commodities at a higher rate.