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gold fund recommendation?

randynevinrandynevin
edited March 2013 in Fund Discussions
A couple years ago I started buying IAU (iShares COMEX Gold Trust), thinking it would fill the role of a gold mutual fund. But today my tax account told me when I eventually sell it (hopefully for a profit), it will be taxed as a "collectible", currently at the 28% level. That's not exactly what I wanted. So I'm looking for recommendations for something that does operate as a mutual fund, invests in gold, and has a NAV that will generally reflect the price of gold, and when I sell it, the gain will be treated as a long-term capital gain. Thx.

Comments

  • johnNjohnN
    we've been holding ? gld - spider gold etf for a while and thinking of adding.
    we also have pspfx - us global resources, diversed commodities fund, you cannot go wrong w/ F.Holmes
  • MarkMark
    I'd take a look at CEF, the Central Fund of Canada, if you don't mind holding a stake of silver as well in roughly a 55/45 proportion.
  • TedTed
    Dear randynevin; Take Mark's suggestion and buy Central fund of Canada (CEF), you get the best of two worlds, gold and silver, and the fund is taxed at 15% rate.
    regards,
    Ted
  • scott
    edited March 2013
    I'll also recommend CEF.
  • johnNjohnN
    related - 5 CEFs w/ gold exposure
    http://seekingalpha.com/article/1233001-5-closed-end-funds-with-gold-exposure?source=yahoo
  • BobCBobC
    Randynevin, we have used CEF for years in client accounts. Yes, it is a mix of gold (55%) and silver (45%) bullion, so you do not get just gold exposure. But it is taxed like an ordinary mutual fund, with no K1 tax filing expenses/annoyances. We use it as a 5% core position in many client accounts. It has served as an ok blend of the two metals, which seem to keep each other in check for the most part.
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