deuxsous

Commodity ETFs as Proxies for Private Money

for d_teller:

You wrote: "Perhaps the sponsors of GLD (and other commodity-holding ETFs, and some of the other commodity-linked ETFs, such as DBC) may have received a private letter ruling that transactions involving their marketed shares (not the creation units) aren't considered to be "Holding" of collectible commodities in a tax sheltered environment..."

GLD says they did get a private letter OK from the IRS, and DBC and others feel they qualify on the UBTI issue. But I agree with you that people shouldn't rush off into the US collectables and UBTI tax thicket without some thought and expertise.

In general I think people will do well to buy small gold bars and/or gold eagles and keep them (insured) in a bank vault and buy "blue" chip golds and very selective ETF's if needed.

For Flash: thanks for your remarks!