Split gold between IAU and PHYS?

Discussion of the Gold portion of the Permanent Portfolio

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Kevin K.
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Split gold between IAU and PHYS?

Post by Kevin K. » Sun Jan 06, 2019 4:26 pm

I'm not fully up to speed with the gold ETF and CEF world and am looking for advice. I was a happy holder of GTU back in the day but sold before they were acquired by Sprott - as much to stop the barrage of warring correspondence to unit holders from the two management teams as anything else.

I'm tempted to just go 100% IAU but the somewhat more attractive tax treatment of PHYS and not having all of my paper gold eggs in one basket also appeals. Any suggestions (including alternative paper gold) much appreciated.
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ochotona
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Re: Split gold between IAU and PHYS?

Post by ochotona » Sun Jan 06, 2019 7:37 pm

I got a physical gold Roth IRA through Goldstartrust.com (Canyon, TX).

It's actual physical gold which I bought from my own dealer (they work with all the major dealers), it's being held for my benefit at Delaware Depository, Goldstar is the custodian.

As a Roth, if gold ever appreciates (hat tip to Budd) the gains will never be taxed. There is never a required minimum distribution, not even for my heirs, so our family won't be forced into a gold liquidation in 30-40 years just when we need the gold. Only God Knows What will be happening to this republic or it's currency at that time. I can take a cash distribution or they will ship me the actual metal I bought.

The annual fee is $175 for up to $100k, then the fee escalates as the account value escalates. 175/100000 = 17.5 basis points, pretty cheap. That's the vault fee and the custodian's fee.

I funded this IRA by converting shares of the SGOL ETF held in a Traditional IRA to a Roth IRA.

I have split my gold about half physical (taxable) at a local bank safe deposit box, and half this Roth IRA.

Goldstar Trust is a subsidiary of Happy State Bank, Texas, (no kidding), has a "A" health rating, $3B in assets.

24/7 online access to your customer account. I think this scheme has paper gold beat, but it's obviously more involved.

I am OK with GLDM held in a Roth. If I need more gold may just buy GLDM. I have filled my HSA with GLDM already. GLDM at 0.18% is less expensive than IAU (0.25%).GLDM is new, it's a sibling of GLD. They track closely thus far.
technovelist
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Re: Split gold between IAU and PHYS?

Post by technovelist » Sun Jan 06, 2019 9:14 pm

ochotona wrote:
Sun Jan 06, 2019 7:37 pm
I got a physical gold Roth IRA through Goldstartrust.com (Canyon, TX).

It's actual physical gold which I bought from my own dealer (they work with all the major dealers), it's being held for my benefit at Delaware Depository, Goldstar is the custodian.

As a Roth, if gold ever appreciates (hat tip to Budd) the gains will never be taxed. There is never a required minimum distribution, not even for my heirs, so our family won't be forced into a gold liquidation in 30-40 years just when we need the gold. Only God Knows What will be happening to this republic or it's currency at that time. I can take a cash distribution or they will ship me the actual metal I bought.

The annual fee is $175 for up to $100k, then the fee escalates as the account value escalates. 175/100000 = 17.5 basis points, pretty cheap. That's the vault fee and the custodian's fee.

I funded this IRA by converting shares of the SGOL ETF held in a Traditional IRA to a Roth IRA.

I have split my gold about half physical (taxable) at a local bank safe deposit box, and half this Roth IRA.

Goldstar Trust is a subsidiary of Happy State Bank, Texas, (no kidding), has a "A" health rating, $3B in assets.

24/7 online access to your customer account. I think this scheme has paper gold beat, but it's obviously more involved.
In December I liquidated $20K of my holding at Gold Star Trust, to use up all of my 0% tax bracket. It wasn't terribly complicated but I did have to talk to both them and my dealer. It took 10 days or so and I did have to be pro-active because I didn't hear back from Gold Star Trust when they finally did send the money to my bank account.
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ochotona
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Re: Split gold between IAU and PHYS?

Post by ochotona » Sun Jan 06, 2019 9:17 pm

Yeah it's a bit of a cat herding exercise no doubt. I'm sure the back office isn't highly automated.
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