[e-gold-list] Re: Another in the series: "Will the media deign to notice?"

[unlinQ Marketing]

On 9/16/07, bob <pintle at thecia.net> wrote:

> I don't know what the end game is for the US gold and silver ETFs, but
> to me they stink to the high heavens.

Not all U.S. gold and silver EFTs are derivative-based.  Some hold
actual physical metal (I assume 100% backing). StreetTracks Gold
Shares, from State Street Global Advisors, which started trading in
2004 is backed by actual bars of gold in a vault in London. Barclay's
Global Investors created a similar E.T.F. in 2005, called iShares
Comex Gold Trust. And last year, Barclay's introduced the iShares
Silver Trust, which holds bars of silver in a vault.

The reasons for the EFTs holding physical metal are mainly due to tax
considerations. E.T.F.'s that use derivatives can pose tax problems
for U.S. investors if they are held in taxable accounts. In that case,
investors have to declare capital gains annually, even if they still
own the funds. And 40 percent of the profits will be taxed at the
higher short-term capital gains rate.


-- 
unlinQ
Financial Services Marketing Group



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