deuxsous

Bob Moriarty: Gold is Safe Haven for Looming Crash

Both CEF and ASA are, for US investors, "passive foreign investment companies" (PFIC) and require one to make formal "elections" on a special form to the IRS of one of several choices of how to be taxed. All of the choices are, in my opinion, unfavorable compared to normal US investment taxation. Making no formal election also has adverse results.

In my opinion, and I am only a private investors and NOT an attorney nor an accountant, it would be preferable for most US investors to own CEF and ASA only in tax-deferred retirement fundds such as IRAs, 401Ks, etc.

Here is an explanation of the tax treatment of PFICs which ASA has published at its website:

www.asaltd.com/Tools/L...