Gold...sell it or keep it???

reply to post by OBE1


There are pro's and con's to every investment. The equity sector I primarily advocate, to me, is a no-brainer. If you deal with gold on a regular basis, its probably a no-brainer to you. To me, dividend paying energy stocks and trusts (mineers also) are easier, most likely because I understand the factors that contribute to their share price far more than I do gold. It most likely comes down to who we were mentored by.

BTW. I hope gold does well for you, but not to well, gold bubbles burst just like everything else. Also, I would hate to see gold at $5000 (near term), because it would mean the demise of the current system.

I wanted to add that in 2006 when I made my last substantial purchase from Tulving they were paying below spot for 1oz GAE's. A year or so ago they were paying $5 over. As increased investment demand soaks-up available supply , their buy price continues rise...ditto their competitors.

We've seen an unusual number [U.S. Mint] sales suspensions over the past 3yrs. Dwindling mine supply and dismal production forecasts leave much to be desired from the bear perspective. As a result , a surge in M&A activity could soon ripple through the beleaguered Jr sector...but man , you really got to pick 'em.

GLTY-JS

I am in the sell the gold camp. The dollar will strengthen and the economy will start to improve. Corporate earnings are pretty good for an economy that is running at about 70%. Inflation is far away and as some gold bulls have pointed out gold has not moved with inflation for over 30 years anyways. The gold and inflation is rubbish at best.

Then you have the fake gold. Rather than force a short squeeze as some forecast, it will sap the confidence of large gold buyers and turn them into sellers. I would guess by now there are probably oodles of fake coins on the market as well. Last one holding the hot potatato loses.

Sell the gold and buy an actively manged mutual fund. Markets will double in next 5 years and gold will be lucky to be above $500.

Originally posted by OBE1
Shares held in precious metals ETF's for 12mo or longer are subject to the same capital gains tax as bullion.

How many financial advisers really understand the Gold market ?


[edit on 3-3-2010 by OBE1]

Good info didnt know that.

What about rolling over contracts? Only way to avoid that tax?

reply to post by GreenBicMan

Margin + rollover costs begs a strong constitution.

Death & Taxes...two things we can probably agree on GBM.

Jus pay da piper

I asked the OP if his friend held a receipt for his coin purchase[s]. It's my understanding that if he doesn't...capital gains can be based on face value i.e...1oz GAE $50.

**speculation...not advise**