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.
