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For anyone thinking of selling gold on Goldman's call, consider pulling a George Costanza and do...

For anyone thinking of selling gold on Goldman's call, consider pulling a George Costanza and do the opposite: Nomura suggests buying gold ahead of next week’s Fed meeting where it expects more easing. Nomura also sees a "tactical" opportunity to buy the metal at below $1,700; net longs are off their highs, which means there's a good chance these buyers will jump back into the market.
Comments (12)
  • Could be a lot more selling of GLD before year end to capture cap gains???
    5 Dec 2012, 06:29 PM Reply Like
  • Gold including GLD is taxed as a collectible, or ordinary income. But, could be some swapping into ETN's.
    5 Dec 2012, 07:28 PM Reply Like
  • "Gold including GLD is taxed as a collectible, or ordinary income." If one writes GLD Puts and the ETF is not assigned, i.e., expires at zero (or one buys back the put before expiration), is the profit from the option trade on the ETF taxed at ordinary income or is it a capital gain?
    5 Dec 2012, 07:40 PM Reply Like
  • If one buys physical and sells physical, like the tree falling in the forest, does it really make a sound?
    5 Dec 2012, 10:56 PM Reply Like
  • There could also be some forced selling by certain hedge funds who have performed woefully and own large amounts of gold. redemptions.
    6 Dec 2012, 01:39 AM Reply Like
  • I suspect GS is trying to induce the longs to sell. Fiscal cliff, QE to infinity... This is a buying opportunity
    6 Dec 2012, 06:17 AM Reply Like
  • It's true that shares in a gold ETF are taxed at a higher rate than normal long term capital gains since gold and gold ETFs are "collectibles." So gold gains don't qualify for the current low 15% rate for long term capital gains. But the tax rate on collectibles is not as high as the tax rate on ordinary income. I think it's 28% compared to the top rate on earned income of 35%. But the other advantage of gain from a collectible compared to ordinary income is that gain from the sale of a collectible is still considered a capital gain. That means the gain may be sheltered with capital losses and capital loss carryovers from the stock market. You can't shelter ordinary income with capital losses except for a trivial $3000 per year.
    6 Dec 2012, 07:20 AM Reply Like
  • Always, Always, ALWAYS

     

    fade any recommendations from GS
    6 Dec 2012, 07:21 AM Reply Like
  • If you own GLD in an IRA, write weekly covered calls to pick up income, there's no reason to sell..Hold on to your gold, it will inevitably go higher...If it's taken away on expiratio,who cares? Buy again, be consistent..
    6 Dec 2012, 08:49 AM Reply Like
  • whatever Goldman say buy or sell publicly do the opposite
    6 Dec 2012, 11:01 AM Reply Like
  • Who on Earth still pays attention to bankers?? Goldman Sucks.
    6 Dec 2012, 03:21 PM Reply Like
  • Pascalraes - please use the appropriate Germanic spelling: Goldman Suchs :-)
    6 Dec 2012, 03:37 PM Reply Like
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