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Gold ETF Placement

Posted: Sun Jul 02, 2023 5:35 pm
by InvestWeMust
What is the recommended place to keep a gold ETF such as GLDM? I originally had it in my traditional IRA but started to swap over to my taxable account. Is taxable the best place for it?

Re: Gold ETF Placement

Posted: Sun Jul 02, 2023 5:59 pm
by Smith1776
I personally keep the same asset allocation in every type of account. This is a "satisficing" type of solution that guarantees solid results even if they are technically less than optimal.

So I guess my answer would be that I have gold in every type of account I have.

Re: Gold ETF Placement

Posted: Sun Jul 02, 2023 6:03 pm
by yankees60
InvestWeMust wrote: Sun Jul 02, 2023 5:35 pm
What is the recommended place to keep a gold ETF such as GLDM? I originally had it in my traditional IRA but started to swap over to my taxable account. Is taxable the best place for it?


I'm certain your question has been discussed many times over the years in this forum.

Here is one of them:

viewtopic.php?t=9334

Gold taxation thoughts

Re: Gold ETF Placement

Posted: Mon Jul 03, 2023 12:20 pm
by joypog
My lazy solution follows Smith1776 to have a bit in each and call it good.

The most recent episode of Risk Parity Radio delves into the question a little. It's the last question on the episode before he goes into the weekly market update. His answer is gold can basically go anywhere.

https://www.riskparityradio.com/podcast ... ne-30-2023

Re: Gold ETF Placement

Posted: Tue Jul 04, 2023 1:20 am
by boglerdude
Gold's taxed as ordinary income. No favorable long term cap gains treatment.

Re: Gold ETF Placement

Posted: Tue Jul 04, 2023 7:26 am
by Xan
boglerdude wrote: Tue Jul 04, 2023 1:20 am Gold's taxed as ordinary income. No favorable long term cap gains treatment.
It's capped at 28%. Not ideal but it's something.

Re: Gold ETF Placement

Posted: Tue Jul 04, 2023 7:56 am
by yankees60
Taxes on Physical Gold and Silver Investments


https://www.investopedia.com/articles/p ... tments.asp

Re: Gold ETF Placement

Posted: Tue Jul 04, 2023 5:06 pm
by seajay
Sell the coins that you bought yesterday for cash, that when you got home the other half said you couldn't keep.

Re: Gold ETF Placement

Posted: Tue Jul 04, 2023 5:46 pm
by Pet Hog
Not sure if it's well known around these parts, but capital gains from the Sprott Physical Gold Trust (PHYS) are taxed at the capital gains rate (0, 15, or 20%) if an extra form is filed with your tax return. See here. The expense ratio is a bit high at 0.41%, but the savings could be significant when held in a taxable account.

Re: Gold ETF Placement

Posted: Wed Jul 05, 2023 12:31 pm
by sophie
No right answer to this one, but I keep the majority of my gold in the after-tax space, in physical form.

Gold ETFs make me nervous for a whole lot of reasons. I own those in tax-advantaged accounts where physical gold isn't really an option. The idea was to make for convenient and tax-free rebalancing, but I've been thinking about getting rid of them, by swapping with cash holdings in taxable accounts.

The tax burden is annoying, but not that bad and rebalances out of gold are infrequent enough that it's not worth going to great lengths to avoid it.