Re: Physical vs Paper
Posted: Mon Mar 31, 2014 5:10 am
[quote=bronsuchecki]I think there is a big difference between IRA physical gold option held as allocated gold and an ETF[/quote]
I agree that there are physical gold-IRA options that might be less subject to counterparty risk (or other risks) than ETFs or CEFs. But physical in your possession has zero counterparty risk, and gold held in a safe-deposit box has very, very low counterparty risk.
[quote=bronsuchecki]Why are you looking for a gold mutual fund, is there a problem rolling over some of the money as WildAboutHarry suggests?[/quote]
Individual 401(k) plans may or may not allow in-service distributions, and those that do may have age or other restrictions for eligibility. If you are 55 or over, though, I believe you can take a 401(k) distribution without penalty (but with taxes if you do not do a rollover).
[quote=portart]I wonder if there isn't some creative way to play gold in a retirement account that is more reliable then an etf. Is there any pure mutual fund that is made up of 100% held gold bullion? It would seem to me that if PRPFX and can it at 25% (20% gold, 5% silver), someone would come up with a fund that is all real held gold.[/quote]
As rickb mentioned, GTU and CEF are pure metal holdings that trade as closed-end funds. I have used GTU in the past, and for me it was the best way (fewer overall risks in comparison to precious metal ETFs) to hold gold in an IRA. You do have to come to grips with the premium/discount issue of CEFs, though.
I agree that there are physical gold-IRA options that might be less subject to counterparty risk (or other risks) than ETFs or CEFs. But physical in your possession has zero counterparty risk, and gold held in a safe-deposit box has very, very low counterparty risk.
[quote=bronsuchecki]Why are you looking for a gold mutual fund, is there a problem rolling over some of the money as WildAboutHarry suggests?[/quote]
Individual 401(k) plans may or may not allow in-service distributions, and those that do may have age or other restrictions for eligibility. If you are 55 or over, though, I believe you can take a 401(k) distribution without penalty (but with taxes if you do not do a rollover).
[quote=portart]I wonder if there isn't some creative way to play gold in a retirement account that is more reliable then an etf. Is there any pure mutual fund that is made up of 100% held gold bullion? It would seem to me that if PRPFX and can it at 25% (20% gold, 5% silver), someone would come up with a fund that is all real held gold.[/quote]
As rickb mentioned, GTU and CEF are pure metal holdings that trade as closed-end funds. I have used GTU in the past, and for me it was the best way (fewer overall risks in comparison to precious metal ETFs) to hold gold in an IRA. You do have to come to grips with the premium/discount issue of CEFs, though.