Page 1 of 2 12 LastLast
Results 1 to 10 of 17

Thread: Gold in RRSP: CGT's ETF or BMG's mutual fund?

  1. #1

    Default Gold in RRSP: CGT's ETF or BMG's mutual fund?

    Hello everyone, this is my first post here. I own physical gold (bought from Kitco, thanks) but so far cannot find a way to do the same inside my RRSP. Currently, I am with CIBC investors. I found three alternatives :

    1. Central Gold Trust's ETF (TSX:GTU.U, US$)
    2. Gold Bullion Fund, a mutual fund from BMG (BMG201, US$)
    3. Move away from CIBC investors to Questrade and open a gold RRSP account with them.

    All three claim to be fully allocated, with the gold kept in canadian vaults, but none will let a shareholder redeem his shares as physical gold. Also, I am irritated to see that the shares do not represent a fixed weight of gold; their value erodes with time.

    Which one would you chose?
    Last edited by MannyM; 03-05-2010 at 08:28 AM. Reason: clarify

  2. #2
    Join Date
    Mar 2009
    Posts
    11,757

    Default

    Welcome: Try CEF.A -Toronto. A slightly different offering from Sprott. Has both gold and silver and they hold it for you. Not like GLD or SLV. Also they have a new offering where I believe you can take possession. Hard in a RRSP tho'. I take possession outside the RRSP and play the CEF.A-T and XGD-T inside my RRSP and a few other miners. cheers
    ...be your own Health Care System... grow your own and eat well

  3. #3

    Default

    Look at the top of the Kitco page and there is a IRA/RSP tab.

    Questrade can hold gold in an RRSP in conjunction with the Canadian Mint.

    I am investigating this one, not sure about withdrawal yet, obviously taxes would have to be paid on withdrawal.

  4. #4

    Default

    Better check again with Questrade on redemption of your gold. The information I have is that were you to buy say...10 gold maples through them for your RSP, you can take collection of them whenever your like.
    They even have a proceedure by you can have gold you own now

    You are just subject to the same tax as any other investment in an RSP.

    They even have a proceedure by which you can have any gold you own now moved into an RSP.

  5. #5

    Default

    I like CEF.
    http://i366.photobucket.com/albums/oo105/Sparkie6678/Kitco%20Contests/Trophies/GoldTrophy1.jpg

  6. #6

    Default

    Quote Originally Posted by Vangruv View Post
    I like CEF.
    Yeah, 'CEF' is a good one. I've had shares of it in my IRA for several years.
    Works fine, Lasts a long time.

    Marc

  7. #7

    Default

    Quote Originally Posted by joebanana View Post
    Better check again with Questrade on redemption of your gold. The information I have is that were you to buy say...10 gold maples through them for your RSP, you can take collection of them whenever your like.
    They even have a proceedure by you can have gold you own now

    You are just subject to the same tax as any other investment in an RSP.

    They even have a proceedure by which you can have any gold you own now moved into an RSP.
    lOOks like once you request delivery, The "gold" is no longer registered, Meaning you will probably pay out your a## in taxes..

    Still good to know that you can get it physical..

  8. #8

    Default Gold in RRSP

    A couple of years ago I transferred my RRSP holdings (GIC's, Bonds etc.) with ScotiaBank into Gold Certificates with Scotia Mocatta and they are still there. In retrospect, the transaction fees that were charged on the transfer were exhorbitant and so I advise caution should anyone pursue this avenue....make sure that you know how much Scotia Mocatta is going to charge you for buying gold certificates on your behalf before you go for it.

    Were I doing this again, I think that I would see if I could cash my holdings out and transfer them into a Questrade RRSP gold holding...the fees would be far less and I would feel more in control and for sure I would not have this nagging concern about the fees that are going to be charged when it is time to redeem my certificates.

  9. #9

    Default

    Quote Originally Posted by BellRockMiner View Post
    A couple of years ago I transferred my RRSP holdings (GIC's, Bonds etc.) with ScotiaBank into Gold Certificates with Scotia Mocatta and they are still there. In retrospect, the transaction fees that were charged on the transfer were exhorbitant and so I advise caution should anyone pursue this avenue....make sure that you know how much Scotia Mocatta is going to charge you for buying gold certificates on your behalf before you go for it.

    Were I doing this again, I think that I would see if I could cash my holdings out and transfer them into a Questrade RRSP gold holding...the fees would be far less and I would feel more in control and for sure I would not have this nagging concern about the fees that are going to be charged when it is time to redeem my certificates.
    Scotia is deadly on fees, I had certificates in RBC that I wanted to convert and my guy at RBC told me that the only way was to convert to cash and that Scotia could sell me the gold, the fees were astronomical and included 8% provincial sales tax??? That is when I went searching and found Kitco.

  10. #10

    Default Gold is better hedge than silver

    CEF.A (Central Fund of Canada) contains both gold and silver. BMG909 (BMG bullion fund) contains gold, silver and platinum. Silver and platinum's main demand is industrial; as economic activities decrease, their demand goes down but the demand for gold goes up.

    Therefore, for hedging against state bankruptcy, hyperinflation and other end-of-times scenarios, pure gold is best. Hence my interest in GTU.U (Central Gold Trust), a pure gold ETF by the same people as CEF.

    About the redeeming in physical gold, I'm still waiting for answers from Questrade and the RC mint; will post when available.

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •