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Gold as Investment




ashedfc
Senior Desi
Member since: Jun 10




Posts: 2153
Location: GTA


Quote:
Originally posted by rajivjuthani

Hello All,

If the motive is to hold on to gold for a long time? is it possible to buy gold as an RRSP.

All advice appreciated.
Thanks,
RJ


In fact RRSP, TFSA is the best place to hold Gold as an investment. Bullion & Jwellery can be risky (theft, storage, etc.etc).
Gold has been & will be the best store of value since mankind. Over the last 10yrs, Gold has increased over 500% from 240 to $1200. So your RRSP would have increased 500% (specially when over the same time S&P 500 was negative performance, where you would have lost your money).
Gold is volatile - because its behaving as currency (fiat currency excessive printing is debasing their value, which is reflected in higher Gold prices).
If fact Gold is still the same - its the currency which is losing value, thereby, making Gold very attractive.
The sad part it, this phenomenon is going to continue (as long as the US debt is not getting under control, they have to print more money)

Gold can be purchased in as RRSP as
1. Bullion Fund
2. Strategic Gold Fund (mixture of Bullion, Gold ETF, Gold Co. stocks)
4. Precious Metals Funds
5. Gold Company stocks directly (this one has the highest risk, as Gold might go up, & a Gold company can still loose money, so the stock can go down).


 
Post ID: 168058 21-07-10 11:14:29
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ftfl
Senior Desi
Member since: Jul 06




Posts: 2335
Location:

Do your own DD.......
Quote:
Originally posted by rajivjuthani

Hello All,

If the motive is to hold on to gold for a long time? is it possible to buy gold as an RRSP.

All advice appreciated.
Thanks,
RJ


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If at anytime a product gets charged with taxes, either up front or every year as an MER (Management Expense Ratio) you will find an erosion in your investment or it will slowly start to dwindle and it is to your advantage if you can minimize this loss.

In doing so, I would urge you to do your own DUE DILIGENCE in finding a suitable investment vehicle and reap the benefits with the skills and insights gained.

In short, first find out what the vehicles are.
Then, find their charges, rate of growth and Risk to reward Ratio and
Also see how liquid it is to purchase or dispose them off,
What the tax implications are holding such an investment,
There are others, that do not come to my mind but I urge you to look into PRIOR to entry.

Freddie.


 
Post ID: 168062 21-07-10 11:46:00
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ashedfc
Senior Desi
Member since: Jun 10




Posts: 2153
Location: GTA


Capital gains tax implications are minimized as RRSP & TFSA have tax benefits already.
Regarding MER for funds, & Sales tax for bullion (you have to live with it, or do it yourself - fees & transaction charges is still there).
YES - for funds, its preferable to deal with a No Load structure (where there is no cost to buy & no cost to sell).
However, for the effort to worthwhile, most of us advisors ask a certain account size to deal with No load (or its better not to have the client).


 
Post ID: 168063 21-07-10 11:57:50
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rajcanadaMember of Administrators
Admin
Member since: Jul 03




Posts: 2712
Location: Kitchener, ON


Quote:
Originally posted by ashedfc
....
Gold can be purchased in as RRSP as
1. Bullion Fund
2. Strategic Gold Fund (mixture of Bullion, Gold ETF, Gold Co. stocks)
4. Precious Metals Funds
5. Gold Company stocks directly (this one has the highest risk, as Gold might go up, & a Gold company can still loose money, so the stock can go down).




You can hold gold itself in RRSP at Questrade.

http://www.questrade.com/trading/gold_rsp.aspx

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Give free food http://www.thehungersite.com ||

 
Post ID: 168068 21-07-10 12:38:25
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ashedfc
Senior Desi
Member since: Jun 10




Posts: 2153
Location: GTA


Quote:
Originally posted by rajcanada

Quote:
Originally posted by ashedfc
....
Gold can be purchased in as RRSP as
1. Bullion Fund
2. Strategic Gold Fund (mixture of Bullion, Gold ETF, Gold Co. stocks)
4. Precious Metals Funds
5. Gold Company stocks directly (this one has the highest risk, as Gold might go up, & a Gold company can still loose money, so the stock can go down).




You can hold gold itself in RRSP at Questrade.

http://www.questrade.com/trading/gold_rsp.aspx</font>

Thats the Gold Bullion (which Questrade holds), but you still have the trading cost of buying & exiting your position (& currency exposure if its US $).


 
Post ID: 168088 21-07-10 16:17:13
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Fido
Senior Desi
Member since: Aug 06




Posts: 5277
Location: Canada


I was considering purchasing a kg of gold as investment . I have 3 options . Please suggest which should be the best .

1. Purchase in India @ Bank & keep it in India for 5-6 yrs ... Might encounter Taxation and Customs Issues then .

2. A friend is coming from Abu Dhabi for his landing . Can ask him to get this for me. This ways gold is in Canada without any implications .... I suppose he can declare it and carry it as his own . Might lose on exchange rate though when transferring the money or may be can ask him to buy it there and I shall pay him CAD here ...

3. Purchase in Canada - would incur GST .

Please advise which mode is best ... To me it appears the UAE route is the best .

-----------------------------------------------------------------
Fido.

 
Post ID: 182692 05-05-11 11:23:18
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vikshr
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Member since: Aug 07




Posts: 157
Location:


Quote:
Originally posted by Fido

I was considering purchasing a kg of gold as investment . I have 3 options . Please suggest which should be the best .

1. Purchase in India @ Bank & keep it in India for 5-6 yrs ... Might encounter Taxation and Customs Issues then .

2. A friend is coming from Abu Dhabi for his landing . Can ask him to get this for me. This ways gold is in Canada without any implications .... I suppose he can declare it and carry it as his own . Might lose on exchange rate though when transferring the money or may be can ask him to buy it there and I shall pay him CAD here ...

3. Purchase in Canada - would incur GST .

Please advise which mode is best ... To me it appears the UAE route is the best .



Hi Fido,

If I were you I will go with option 3 ......
Option 2 might save some money, but sounds little complicated to me.... well its just me :)

I guess experts may provide a better opinion on this...


BTW.... this post of yours has put me into trouble at home....wife keeps complaining as to when am i going to buy her 1 kg Gold ;)

-----------------------------------------------------------------
Vik

 
Post ID: 182740 06-05-11 13:58:20
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chekram_04
Senior Desi
Member since: Nov 06




Posts: 427
Location: Mississauga


Quote:
Originally posted by Fido

I was considering purchasing a kg of gold as investment .
Please advise which mode is best ... To me it appears the UAE route is the best .



Studies have shown that having a mix of different investments in your portfolio is important to investing success. These is true even for commodities. Don't rely on only one product. I think financial advisors will provide you more on this.
BTW, if this is one of the instrument of your portfolio than I would like to congratulate you for your achievements wity my green-eyed monster.:cheers:


 
Post ID: 182756 06-05-11 20:42:14
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Fido
Senior Desi
Member since: Aug 06




Posts: 5277
Location: Canada


Thanks Folks .

Vikshr - Thanks for advising me on 3 .. I was under the impression that there would be hst but upon checking , I ve learnt that there s none on bullion .

And yes the Gold would be .. close and yet too far for my wife .. an apple you can see but not eat !!

-----------------------------------------------------------------
Fido.

 
Post ID: 182819 09-05-11 11:14:04
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ashedfc
Senior Desi
Member since: Jun 10




Posts: 2153
Location: GTA


Quote:
Originally posted by Fido
I was under the impression that there would be hst but upon checking , I ve learnt that there s none on bullion .


Only if the Bullion is minted at Royal Canadian Mint, than HST does not applies.
Another advantage of buying in Canada is that you have the receipt to prove your ownership, in the event of robbery/theft (receipt helps with the insurance company's investigation for claim payment).



 
Last edited by: ashedfc on 09-05-11 13:09:27
Post ID: 182824 09-05-11 12:08:10
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