Investing in gold

cloud_dog

mr_fishbulb wrote: »

I didn't realise I could invest in that the same as a UK ETF using selftrade.

Are there annual management fees for that fund?

Haven't checked the latest annual reports but I beleive the annual management charge (admin fee, etc) works out to be approx 0.3% (this needs verification), which is taken off the net asset vallue. There is a sister fund invested solely in Gold - Central Gold Trust (http://www.gold-trust.com).

One advantage is no stamp duty but the main one for me was that it can be held in an ISA (due to the company structure), whereas you are not allowed to hold physical commodities in an ISA.

cloud_dog

shokadelika

cloud_dog wrote: »

Haven't checked the latest annual reports but I beleive the annual management charge (admin fee, etc) works out to be approx 0.3% (this needs verification), which is taken off the net asset vallue. There is a sister fund invested solely in Gold - Central Gold Trust (http://www.gold-trust.com).

One advantage is no stamp duty but the main one for me was that it can be held in an ISA (due to the company structure), whereas you are not allowed to hold physical commodities in an ISA.

cloud_dog

You can hold PHAU ,PHAG,etc Etfs in an ISa.




Cloud Dog there is excellent daily gold analysis here from one of the best/longest traders in the gold business.
http://www.jsmineset.com/

cloud_dog

shokadelika wrote: »

You can hold PHAU ,PHAG,etc Etfs in an ISa.

Shoka, you are correct but you need to be aware that ETF's may not actually hold physical bullion.

A lot of them will hold futures, etc, and may engage in 'lending' the gold. I'm sure ETF's are fine but from a personal perspective I wanted something which actually held bullion and would not engage in lending.

cloud_dog

tradetime

Shoka, you are correct but you need to be aware that ETF's may not actually hold physical bullion.

This is very true, there is a lot more paper out there than gold, and as demand increases the disconnect becomes more exagerated. If the object is to invest in gold for the long haul then little beats physical or that which is totaly underpinned by physical. I use etf's for short term positions for which imho they are fine.
Some info here, In particular view the "Criticism" near the ned of the Wiki article
Gold Etf's
GLD in particular.