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Re: The Definitive GOLD’s Near-Term Outlook Thread

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  • Fri, May 01, 2009 - 07:26pm

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    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: The Definitive GOLD’s Near-Term Outlook Thread

Doug:

I have the same dilemma — paper gold. The way I’m dealing with it is by systematically selling my ETF shares and using the proceeds to purchase physical gold. There are tax implications, but I will just have to live with them. After giving this some thought, I decided to spread my transactions out over a period of several months.

As you do your research, you’ll probably encounter offers of gold pools. I suggest that you avoid unallocated pools. An allocated pool might be okay, but physical possession of the metal is probably the best alternative.

Since you already have paper gold, apart from the tax aspect, you are largely protected against a sudden spike the price. In other words, should gold shoot up to $1,200 tomorrow, you could sell your ETF shares and simultaneously order gold for physical delivery at roughly the same price (emphasis on "roughly").