Question on gold investing and safety

[mixxalot]

Folks,

I am considering investing 30% of savings each year into gold and silver. Looking at index and ETF funds but fees are very high for funds like GLD. Question is:

If I get a bank safety deposit box and store gold coins like Krugerands in it, how can I ensure that it will be safe against theft and disaster?

[paramount]

Vanguard had a precious metals fund…

VGPMX

They may have a new fund in the works.

[paramount]

Vanguard had a precious metals fund…

VGPMX

They may have a new fund in the works.

[paramount]

Vanguard had a precious metals fund…

VGPMX

They may have a new fund in the works.

[paramount]

Vanguard had a precious metals fund…

VGPMX

They may have a new fund in the works.

[paramount]

Vanguard had a precious metals fund…

VGPMX

They may have a new fund in the works.

[Coronita]

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.

 

Lonmin PLC	6,069,413	$454,791,950
Impala Platinum Holdings Ltd. ADR	9,400,000	$327,611,620
Eramet SLN	776,773	$282,902,158
Harry Winston Diamond Corp.	6,575,000	$257,672,045
Johnson Matthey PLC	7,450,000	$253,890,180
Barrick Gold Corp.	5,750,000	$230,948,072
Anglo Platinum Ltd. ADR	1,450,000	$219,490,270
Sims Group Ltd.	6,300,000	$179,802,450
CONSOL Energy, Inc.	3,230,000	$150,518,000
Imerys SA	1,599,197	$145,720,458
K+S AG	730,000	$133,803,867
Peabody Energy Corp.	2,700,000	$129,249,000
BlueScope Steel Ltd.	13,300,000	$126,756,196
FMC Corp.	2,350,000	$122,247,000
Centerra Gold Inc.	12,940,000	$117,086,412
Meridian Gold Inc.	3,500,000	$115,850,000
Minerals Technologies, Inc.	1,377,000	$92,259,000
Iluka Resources Ltd.	17,150,000	$83,846,548
Compania de Minas Buenaventura S.A.u. ADR	1,700,000	$81,226,000
Peter Hambro Mining PLC	2,967,368	$74,643,321
Sherritt International Corp.	4,375,000	$70,024,632
Northam Platinum Ltd.	9,600,000	$68,935,400
Schnitzer Steel Industries, Inc. Class A	900,000	$65,961,000
AMCOL International Corp.	1,600,000	$52,944,000
Centennial Coal Co., Ltd.	15,775,000	$52,258,930
Gold Fields Ltd. ADR	1,900,000	$34,371,000
CSR Ltd.	11,862,069	$32,596,260
Gem Diamond Ltd.	1,171,428	$25,348,194
St. Barbara Ltd.	36,800,000	$19,666,766
Arch Coal, Inc.	300,000	$10,122,000
PT International Nickel Indonesia Tbk	1,250,000	$8,672,808
Hochschild Mining plc	1,050,000	$8,098,536
Consolidated Minerals Ltd.	1,500,000	$6,531,195
Claude Resources, Inc.	4,150,000	$6,017,500
Kenmare Resources PLC	4,550,000	$5,001,056
SouthernEra Diamonds, Inc.	7,022,900	$3,671,551
Arizona Star Resource Corp.	200,000	$2,750,000
Zambezi Resources Ltd.	4,895,833	$2,328,542
Tanami Gold NL	18,170,000	$2,102,554
Bougainville Copper Ltd.	2,000,000	$1,722,889
Mwana Africa PLC	100,000	$108,463
MIL Resources, Ltd.	1,678,671	$104,019

 

[Coronita]

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.

 

Lonmin PLC	6,069,413	$454,791,950
Impala Platinum Holdings Ltd. ADR	9,400,000	$327,611,620
Eramet SLN	776,773	$282,902,158
Harry Winston Diamond Corp.	6,575,000	$257,672,045
Johnson Matthey PLC	7,450,000	$253,890,180
Barrick Gold Corp.	5,750,000	$230,948,072
Anglo Platinum Ltd. ADR	1,450,000	$219,490,270
Sims Group Ltd.	6,300,000	$179,802,450
CONSOL Energy, Inc.	3,230,000	$150,518,000
Imerys SA	1,599,197	$145,720,458
K+S AG	730,000	$133,803,867
Peabody Energy Corp.	2,700,000	$129,249,000
BlueScope Steel Ltd.	13,300,000	$126,756,196
FMC Corp.	2,350,000	$122,247,000
Centerra Gold Inc.	12,940,000	$117,086,412
Meridian Gold Inc.	3,500,000	$115,850,000
Minerals Technologies, Inc.	1,377,000	$92,259,000
Iluka Resources Ltd.	17,150,000	$83,846,548
Compania de Minas Buenaventura S.A.u. ADR	1,700,000	$81,226,000
Peter Hambro Mining PLC	2,967,368	$74,643,321
Sherritt International Corp.	4,375,000	$70,024,632
Northam Platinum Ltd.	9,600,000	$68,935,400
Schnitzer Steel Industries, Inc. Class A	900,000	$65,961,000
AMCOL International Corp.	1,600,000	$52,944,000
Centennial Coal Co., Ltd.	15,775,000	$52,258,930
Gold Fields Ltd. ADR	1,900,000	$34,371,000
CSR Ltd.	11,862,069	$32,596,260
Gem Diamond Ltd.	1,171,428	$25,348,194
St. Barbara Ltd.	36,800,000	$19,666,766
Arch Coal, Inc.	300,000	$10,122,000
PT International Nickel Indonesia Tbk	1,250,000	$8,672,808
Hochschild Mining plc	1,050,000	$8,098,536
Consolidated Minerals Ltd.	1,500,000	$6,531,195
Claude Resources, Inc.	4,150,000	$6,017,500
Kenmare Resources PLC	4,550,000	$5,001,056
SouthernEra Diamonds, Inc.	7,022,900	$3,671,551
Arizona Star Resource Corp.	200,000	$2,750,000
Zambezi Resources Ltd.	4,895,833	$2,328,542
Tanami Gold NL	18,170,000	$2,102,554
Bougainville Copper Ltd.	2,000,000	$1,722,889
Mwana Africa PLC	100,000	$108,463
MIL Resources, Ltd.	1,678,671	$104,019

 

[Coronita]

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.

 

Lonmin PLC	6,069,413	$454,791,950
Impala Platinum Holdings Ltd. ADR	9,400,000	$327,611,620
Eramet SLN	776,773	$282,902,158
Harry Winston Diamond Corp.	6,575,000	$257,672,045
Johnson Matthey PLC	7,450,000	$253,890,180
Barrick Gold Corp.	5,750,000	$230,948,072
Anglo Platinum Ltd. ADR	1,450,000	$219,490,270
Sims Group Ltd.	6,300,000	$179,802,450
CONSOL Energy, Inc.	3,230,000	$150,518,000
Imerys SA	1,599,197	$145,720,458
K+S AG	730,000	$133,803,867
Peabody Energy Corp.	2,700,000	$129,249,000
BlueScope Steel Ltd.	13,300,000	$126,756,196
FMC Corp.	2,350,000	$122,247,000
Centerra Gold Inc.	12,940,000	$117,086,412
Meridian Gold Inc.	3,500,000	$115,850,000
Minerals Technologies, Inc.	1,377,000	$92,259,000
Iluka Resources Ltd.	17,150,000	$83,846,548
Compania de Minas Buenaventura S.A.u. ADR	1,700,000	$81,226,000
Peter Hambro Mining PLC	2,967,368	$74,643,321
Sherritt International Corp.	4,375,000	$70,024,632
Northam Platinum Ltd.	9,600,000	$68,935,400
Schnitzer Steel Industries, Inc. Class A	900,000	$65,961,000
AMCOL International Corp.	1,600,000	$52,944,000
Centennial Coal Co., Ltd.	15,775,000	$52,258,930
Gold Fields Ltd. ADR	1,900,000	$34,371,000
CSR Ltd.	11,862,069	$32,596,260
Gem Diamond Ltd.	1,171,428	$25,348,194
St. Barbara Ltd.	36,800,000	$19,666,766
Arch Coal, Inc.	300,000	$10,122,000
PT International Nickel Indonesia Tbk	1,250,000	$8,672,808
Hochschild Mining plc	1,050,000	$8,098,536
Consolidated Minerals Ltd.	1,500,000	$6,531,195
Claude Resources, Inc.	4,150,000	$6,017,500
Kenmare Resources PLC	4,550,000	$5,001,056
SouthernEra Diamonds, Inc.	7,022,900	$3,671,551
Arizona Star Resource Corp.	200,000	$2,750,000
Zambezi Resources Ltd.	4,895,833	$2,328,542
Tanami Gold NL	18,170,000	$2,102,554
Bougainville Copper Ltd.	2,000,000	$1,722,889
Mwana Africa PLC	100,000	$108,463
MIL Resources, Ltd.	1,678,671	$104,019

 

[Coronita]

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.

 

Lonmin PLC	6,069,413	$454,791,950
Impala Platinum Holdings Ltd. ADR	9,400,000	$327,611,620
Eramet SLN	776,773	$282,902,158
Harry Winston Diamond Corp.	6,575,000	$257,672,045
Johnson Matthey PLC	7,450,000	$253,890,180
Barrick Gold Corp.	5,750,000	$230,948,072
Anglo Platinum Ltd. ADR	1,450,000	$219,490,270
Sims Group Ltd.	6,300,000	$179,802,450
CONSOL Energy, Inc.	3,230,000	$150,518,000
Imerys SA	1,599,197	$145,720,458
K+S AG	730,000	$133,803,867
Peabody Energy Corp.	2,700,000	$129,249,000
BlueScope Steel Ltd.	13,300,000	$126,756,196
FMC Corp.	2,350,000	$122,247,000
Centerra Gold Inc.	12,940,000	$117,086,412
Meridian Gold Inc.	3,500,000	$115,850,000
Minerals Technologies, Inc.	1,377,000	$92,259,000
Iluka Resources Ltd.	17,150,000	$83,846,548
Compania de Minas Buenaventura S.A.u. ADR	1,700,000	$81,226,000
Peter Hambro Mining PLC	2,967,368	$74,643,321
Sherritt International Corp.	4,375,000	$70,024,632
Northam Platinum Ltd.	9,600,000	$68,935,400
Schnitzer Steel Industries, Inc. Class A	900,000	$65,961,000
AMCOL International Corp.	1,600,000	$52,944,000
Centennial Coal Co., Ltd.	15,775,000	$52,258,930
Gold Fields Ltd. ADR	1,900,000	$34,371,000
CSR Ltd.	11,862,069	$32,596,260
Gem Diamond Ltd.	1,171,428	$25,348,194
St. Barbara Ltd.	36,800,000	$19,666,766
Arch Coal, Inc.	300,000	$10,122,000
PT International Nickel Indonesia Tbk	1,250,000	$8,672,808
Hochschild Mining plc	1,050,000	$8,098,536
Consolidated Minerals Ltd.	1,500,000	$6,531,195
Claude Resources, Inc.	4,150,000	$6,017,500
Kenmare Resources PLC	4,550,000	$5,001,056
SouthernEra Diamonds, Inc.	7,022,900	$3,671,551
Arizona Star Resource Corp.	200,000	$2,750,000
Zambezi Resources Ltd.	4,895,833	$2,328,542
Tanami Gold NL	18,170,000	$2,102,554
Bougainville Copper Ltd.	2,000,000	$1,722,889
Mwana Africa PLC	100,000	$108,463
MIL Resources, Ltd.	1,678,671	$104,019

 

[Coronita]

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.

 

Lonmin PLC	6,069,413	$454,791,950
Impala Platinum Holdings Ltd. ADR	9,400,000	$327,611,620
Eramet SLN	776,773	$282,902,158
Harry Winston Diamond Corp.	6,575,000	$257,672,045
Johnson Matthey PLC	7,450,000	$253,890,180
Barrick Gold Corp.	5,750,000	$230,948,072
Anglo Platinum Ltd. ADR	1,450,000	$219,490,270
Sims Group Ltd.	6,300,000	$179,802,450
CONSOL Energy, Inc.	3,230,000	$150,518,000
Imerys SA	1,599,197	$145,720,458
K+S AG	730,000	$133,803,867
Peabody Energy Corp.	2,700,000	$129,249,000
BlueScope Steel Ltd.	13,300,000	$126,756,196
FMC Corp.	2,350,000	$122,247,000
Centerra Gold Inc.	12,940,000	$117,086,412
Meridian Gold Inc.	3,500,000	$115,850,000
Minerals Technologies, Inc.	1,377,000	$92,259,000
Iluka Resources Ltd.	17,150,000	$83,846,548
Compania de Minas Buenaventura S.A.u. ADR	1,700,000	$81,226,000
Peter Hambro Mining PLC	2,967,368	$74,643,321
Sherritt International Corp.	4,375,000	$70,024,632
Northam Platinum Ltd.	9,600,000	$68,935,400
Schnitzer Steel Industries, Inc. Class A	900,000	$65,961,000
AMCOL International Corp.	1,600,000	$52,944,000
Centennial Coal Co., Ltd.	15,775,000	$52,258,930
Gold Fields Ltd. ADR	1,900,000	$34,371,000
CSR Ltd.	11,862,069	$32,596,260
Gem Diamond Ltd.	1,171,428	$25,348,194
St. Barbara Ltd.	36,800,000	$19,666,766
Arch Coal, Inc.	300,000	$10,122,000
PT International Nickel Indonesia Tbk	1,250,000	$8,672,808
Hochschild Mining plc	1,050,000	$8,098,536
Consolidated Minerals Ltd.	1,500,000	$6,531,195
Claude Resources, Inc.	4,150,000	$6,017,500
Kenmare Resources PLC	4,550,000	$5,001,056
SouthernEra Diamonds, Inc.	7,022,900	$3,671,551
Arizona Star Resource Corp.	200,000	$2,750,000
Zambezi Resources Ltd.	4,895,833	$2,328,542
Tanami Gold NL	18,170,000	$2,102,554
Bougainville Copper Ltd.	2,000,000	$1,722,889
Mwana Africa PLC	100,000	$108,463
MIL Resources, Ltd.	1,678,671	$104,019

 

[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

[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

[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

[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

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