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Profits in Gold ETF? The Taxman Cometh

|Includes: SPDR Gold Trust ETF (GLD)

Keith Fitz-Gerald warns about tax exposures with commodity ETFs in Money Morning (here).  In particular, Keith sites the exposure of holders of GLD (SPDR Gold Trust) to having to pay up to 28% gains tax because gold is classified as a collectible by the IRS.  If it were classified as a commodity, the top long term tax rate would be 15%.

A number of other ETFs expose holders to tax surprises because they are organized in business forms that pass gains within the ETFs on to shareholders, even when the gains are not reflected in the share prices.  Keith lists a number of examples.