Vanguard had a precious metals fund…

VGPMX

They may have a new fund in the works.

Vanguard had a precious metals fund…

VGPMX

They may have a new fund in the works.

Paramount,

The VGPMX fund isn't really a fund investing in gold, silver, and other precious metals. Looking at this fund's holdings, it's many investment in companies that mine precious metals or are in the metal business. It doesn't strictly tract precious metal prices. Example there were days when gold went up, the entire stock market both here and overseas were down, and this fund tracked the stock market's movement and not the price of gold.

Second, this fund is basically closed to new investors. So it's a moot point unless you already own this fund.

I'm not trying to say this is a bad fund. Actually, I do have it in my portfolio. It's just that it's not truely tracking precious metal prices.  I'm posting the funds holdings below. Also not that this fund does have pretty hefty distributions. So if possible, it's probably better to hold this in tax-exempt or tax-deferred accounts.

Paramount,

The VGPMX fund isn't really a fund investing in gold, silver, and other precious metals. Looking at this fund's holdings, it's many investment in companies that mine precious metals or are in the metal business. It doesn't strictly tract precious metal prices. Example there were days when gold went up, the entire stock market both here and overseas were down, and this fund tracked the stock market's movement and not the price of gold.

Second, this fund is basically closed to new investors. So it's a moot point unless you already own this fund.

I'm not trying to say this is a bad fund. Actually, I do have it in my portfolio. It's just that it's not truely tracking precious metal prices.  I'm posting the funds holdings below. Also not that this fund does have pretty hefty distributions. So if possible, it's probably better to hold this in tax-exempt or tax-deferred accounts.

Paramount,

The VGPMX fund isn't really a fund investing in gold, silver, and other precious metals. Looking at this fund's holdings, it's many investment in companies that mine precious metals or are in the metal business. It doesn't strictly tract precious metal prices. Example there were days when gold went up, the entire stock market both here and overseas were down, and this fund tracked the stock market's movement and not the price of gold.

Second, this fund is basically closed to new investors. So it's a moot point unless you already own this fund.

I'm not trying to say this is a bad fund. Actually, I do have it in my portfolio. It's just that it's not truely tracking precious metal prices.  I'm posting the funds holdings below. Also not that this fund does have pretty hefty distributions. So if possible, it's probably better to hold this in tax-exempt or tax-deferred accounts.

I’m not sure I would call the fees on GLD “very high.” At an expense ratio of 40 bps, it certainly beats a lot of mutual funds. On the other hand, all the managers have to do is buy bullion and sit on it — not bad work, if you can get it 😉

However, it’s my understanding that gold-holding funds such as GLD do *not* benefit from the lower long-term capital gains rates. Something about the Gubmint considering bullion as “collectible” or somesuch nonsense. Anyhow, you might want to consult a tax accountant about buying GLD over the long haul. An IRA might be a good place to buy it.

Lyra

I’m not sure I would call the fees on GLD “very high.” At an expense ratio of 40 bps, it certainly beats a lot of mutual funds. On the other hand, all the managers have to do is buy bullion and sit on it — not bad work, if you can get it 😉

However, it’s my understanding that gold-holding funds such as GLD do *not* benefit from the lower long-term capital gains rates. Something about the Gubmint considering bullion as “collectible” or somesuch nonsense. Anyhow, you might want to consult a tax accountant about buying GLD over the long haul. An IRA might be a good place to buy it.

Lyra