GOLD 0.51% $1,391.7 gold futures

buying gold securities

  1. 229 Posts.
    Hi All,

    Just wondering if anyone has had experience with buying ASX code:GOLD, or sometimes GOL (http://www.goldbullion.com.au/) directly? It seems like a good way to build a gold position in the dips that usually don't last more than a day or so, but I am bit confused how the fee of 0.40%pa is applied to the security? I think what happens is they decrease your gold holding per share, but then how is the gold content of each share made known to buyers? It makes no sense.

    Also, if we make a capital gain do we pay CGT on the sale of the shares? AFAIK the purchase and sale of physical bullion (99.99) does not incur any GST or CGT.

    -Cluster
 
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