suggest a gold owning fund

drbrucedale
By drbrucedale on Tue, Aug 26, 2014 - 6:53am

Dear DaveFairTex:

Can you suggest a couple of possible funds or other vehicles by which I might own physical gold in vaulted, segregated storage?  I have some money in a Schwab SEP IRA that I could probably use for a purchase like this.  Once again, your help is really appreciated.

3 Comments

Mike Dill's picture
Mike Dill
Status: Bronze Member (Offline)
Joined: Nov 8 2009
Posts: 28
I own CEF

Central Fund of Canada has gold and silver (real - not paper) in the vault.

drbrucedale's picture
drbrucedale
Status: Member (Offline)
Joined: Sep 6 2009
Posts: 9
fund for owning gold

Thank you, Mr. Dill.

joesxm2011's picture
joesxm2011
Status: Gold Member (Offline)
Joined: Mar 16 2011
Posts: 259
Metal IRA

If what you are looking for is some company to hold the metal for you in the vault as segregated storage you could check with APMEX.com.  They have one program for non-IRA holdings and can point you to several IRA companies that work with a couple of vaulting companies.

I have not done either of these, but I seem to remember them telling me that certain types of metals (mainly the more value-dense types) could be held as segregated storage, where your actual item was kept separate for you.  Other bulky item like silver bars would not be allowed for this type of storage.

With the non-IRA account it is just tied in to APMEX and you can buy into the account, sell back to APMEX or arrange physical delivery.  Each IRA company might be a little different, but you open the IRA or transfer your existing IRA to them and then instruct them to purchase from a supplier you designate, maybe from a list of those they work with.

There are annual fees for storing the metal for you and maybe some IRA setup fees.  IRA holdings are limited to certain metal products, but the list is pretty large.  If the program is willing to do segregated storage they probably charge a bit higher fee for it.

If you give APMEX a call or look on their web site you can find more information on this.

Fidelity offers a metal IRA service, but I found that the fees and prices were not very competitive.  Schwab probably does the same.  These are usually with some loosely affiliated third company not with the actual Schwab or Fidelity.

BTW - CEF is a good fund that is likely to have physical gold backing the fund, but it is still a financial instrument like a stock.  You probably realize this, but owning a fund like CEF will not provide you with allocated segregated storage.

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