deuxsous

Comment Stream » OIL

Comment Stream
Filter comments by:
Highest rated Latest comments
Or filter by symbol:
  • Gaza War: Expect a Spike in Oil, Gold
    Gaza is irrelevant.... It's just another third world street gang trying to up the ante and losing. It's possible the producers are using it as an excuse to try a short squeeze in crude oil futures, but as an event it's meaningless.
    Jan 04 22:37 pm |Rating: +2 -2 |Link to Comment |View article
  • Oil, Gold and the Holy Dow
    i've owned gold a long, long time, but i sure don't understand the goldbug holy roller religion of CB manipulation and other assorted conspiracy theories.

    hey, girls, it's just portfolio insurance! add gold to your list of insurance policies a rational person needs and forget about it.
    Jul 11 16:00 pm |Rating: 0 0 |Link to Comment |View article
  • 17 Commodity ETFs to Hedge Your Portfolio
    it's an equally-weighted index so it isn't as volatile as the GoldiSax Index which is well over 50% crude oil. So it may not be the best choice for short term trading, but it's super for long term diversification of a total portfolio. i'm using it as an inflation hedge in an income portfolio.

    another similar one is PIMCO's PCRDX or PCRIX which uses a DJ-AIG indexed note over a TIPS base. It pays about 4% on the TIPS, so it works well in a tax-deferrred IRA or similar account as a double barreled inflation hedge.
    May 29 12:00 pm |Rating: 0 0 |Link to Comment |View article
  • 17 Commodity ETFs to Hedge Your Portfolio
    Also there is old CEF from Canada, also traded in the US. It is equally-weighted in gold and silver and has been around since the 1980's.
    May 29 10:13 am |Rating: 0 0 |Link to Comment |View article
  • 17 Commodity ETFs to Hedge Your Portfolio
    The best commodity index ETF is GCC. It is the old CRB Index with 17 equally-weighted commodities, essentially all US-traded commodity futures except no oats, no soybean meal or bean oil, and no meats. Being equally-weighted, the ride is smoother. And when coffee and cocoa make their runs, you're there too.

    Plus you get the very favororable taxation afforded to futures as opposed to ETN's and to collectibles like the silver and gold funds. (Many of DB's funds are also futures based.)

    I own GCC.

    I own GCC.

    May 29 10:07 am |Rating: 0 0 |Link to Comment |View article
  • Commodity ETFs as Proxies for Private Money
    for d_teller:

    You wrote: "Perhaps the sponsors of GLD (and other commodity-holding ETFs, and some of the other commodity-linked ETFs, such as DBC) may have received a private letter ruling that transactions involving their marketed shares (not the creation units) aren't considered to be "Holding" of collectible commodities in a tax sheltered environment..."

    GLD says they did get a private letter OK from the IRS, and DBC and others feel they qualify on the UBTI issue. But I agree with you that people shouldn't rush off into the US collectables and UBTI tax thicket without some thought and expertise.

    In general I think people will do well to buy small gold bars and/or gold eagles and keep them (insured) in a bank vault and buy "blue" chip golds and very selective ETF's if needed.

    For Flash: thanks for your remarks!
    May 23 00:35 am |Rating: 0 0 |Link to Comment |View article
  • Commodity ETFs as Proxies for Private Money
    REDEMPTION OF THE SHARES
    The Shares may only be redeemed by or through an Authorized Participant and only in Baskets.
    ======================...
    Per Basket Information: As of 05/21/2008 NAV Per Basket $9,102,967.33 NAV (in gold oz) Per Basket 9,862.37
    ======================...

    Creation and Redemption of Shares
    Authorized Participants are the only persons that may place orders to create and redeem Baskets. Authorized
    Participants must be (1) registered broker-dealers or other securities market participants, such as banks and
    other financial institutions, which are not required to register as broker-dealers to engage in securities
    transactions, and (2) DTC Participants. To become an Authorized Participant, a person must enter into a
    Participant Agreement with the Sponsor and the Trustee. The Participant Agreement provides the procedures for
    the creation and redemption of Baskets and for the delivery of the gold and any cash required for such creations
    and redemptions. The Participant Agreement and the related procedures attached thereto may be amended by
    the Trustee and the Sponsor, without the consent of any Shareholder or Authorized Participant. Authorized
    Participants pay a transaction fee of $2,000 to the Trustee for each order they place to create or redeem one or
    more Baskets. Authorized Participants who make deposits with the Trust in exchange for Baskets receive no
    fees, commissions or other form of compensation or inducement of any kind from either the Sponsor or the
    Trust, and no such person has any obligation or responsibility to the Sponsor or the Trust to effect any sale or
    resale of Shares.
    ======================...
    MAXIMUM 28% LONG-TERM CAPITAL GAINS TAX RATE FOR US SHAREHOLDERS WHO ARE
    INDIVIDUALS
    Under current law, gains recognized by individuals from the sale of ‘‘collectibles,’’ including gold bullion, held
    for more than one year are taxed at a maximum rate of 28%, rather than the 15% rate applicable to most other
    long-term capital gains. For these purposes, gain recognized by an individual upon the sale of an interest in a
    trust that holds collectibles is treated as gain recognized on the sale of collectibles, to the extent that the gain is
    attributable to unrealized appreciation in value of the collectibles held by the trust. Therefore, any gain
    recognized by an individual US Shareholder attributable to a sale of Shares held for more than one year, or
    attributable to the Trust’s sale of any gold bullion which the Shareholder is treated (through its ownership of
    Shares) as having held for more than one year, generally will be taxed at a maximum rate of 28%. The tax rates
    for capital gains recognized upon the sale of assets held by an individual US Shareholder for one year or less or
    by a taxpayer other than an individual US taxpayer are generally the same as those at which ordinary income is
    taxed.
    ======================...
    INVESTMENT BY CERTAIN RETIREMENT PLANS
    Code section 408(m) provides that the acquisition of a ‘‘collectible’’ by an individual retirement account, or IRA,
    or a participant-directed account maintained under any plan that is tax-qualified under Code section 401(a) is
    treated as a taxable distribution from the account to the owner of the IRA, or to the participant for whom the
    plan account is maintained, of an amount equal to the cost to the account of acquiring the collectible. The
    Sponsor has received a private letter ruling from the IRS to the effect that a purchase of Shares by an IRA, or by
    a participant-directed account under a Code section 401(a) plan, will not be treated as resulting in a taxable
    distribution to the IRA owner or plan participant under Code section 408(m). However, if any of the Shares so
    purchased are distributed from the IRA or plan account to the IRA owner or plan participant, or if any gold
    received by such IRA or plan account upon the redemption of any of the Shares purchased by it is distributed to
    the IRA owner or plan participant, the Shares or gold so distributed will be subject to federal income tax in the
    year of distribution, to the extent provided under the applicable provisions of Code section 408(d) or Code
    section 402. See also ‘‘ERISA and Related Considerations.’’
    May 22 17:52 pm |Rating: 0 0 |Link to Comment |View article
  • Commodity ETFs as Proxies for Private Money
    Actually, in my own personal and humble opinion only, GLD, and some other US precious metals funds, is an extremely poor way to get gold exposure. I have excerpted below from the distributor's website and from their prospectus various snippets of information about GLD.

    You can only redeem shares for gold if you are an Authorized Participant, which essentially means if you are a bank a brokerage. As of today's information at the website you would need to own $9,102,967.33 in GLD shares and pay a $2000 fee and be an AP in order to redeem GLD shares in gold.

    The taxation of GLD capital gains, if any, is quite onerous under US Federal taxes: 28% regardless of time held or dollar value of the gain. (see below)There are also some restrictions on US tax-deferred retirement funds holding GLD. (see below)

    All of these same taxation issues would also apply to CEF plus the addition of some Canadian issues.

    I do not own either or these securities. I prefer to own actual gold or to own it in paper form in etf's which hold unleveraged gold futures contracts which are taxed much more favorably for US investors and have none of the potential difficulties for tax-deferred US retirement plans. DB has some of such funds. I do not own any of those funds although I may do so in future.

    As always, one should read *and understand* the prospectus before buying anything.
    May 22 17:49 pm |Rating: 0 0 |Link to Comment |View article
  • Commodity ETFs as Proxies for Private Money
    For Tom Gordon:

    Are you quite sure that shares of GLD can be redeemed for physical gold? If so is the distrubution not taxable, as it should be?

    Thanks in advance!
    May 22 17:06 pm |Rating: 0 0 |Link to Comment |View article

deuxsous's Comments Stream Stats

  • 79 Comments, 3 , 3
  • Total Comment Stream rating - = 0