Over the years, we have accumulated about $100k worth of 1oz gold coins and bars.
This is about 2% of net worth / portfolio, would want to keep it tied to gold.
Thinking about converting them into ~400 shares of GLD and manage with rest of portfolio.
My major concern is, without me, my spouse/children will struggle to liquidate physical gold and might probably get a bad deal or it would be forgotten.
Need inputs on my line of thinking and help in making a wise decision.
*** I have capital losses that I can offset with gains from selling physical gold ****
Pros:
This is about 2% of net worth / portfolio, would want to keep it tied to gold.
Thinking about converting them into ~400 shares of GLD and manage with rest of portfolio.
My major concern is, without me, my spouse/children will struggle to liquidate physical gold and might probably get a bad deal or it would be forgotten.
Need inputs on my line of thinking and help in making a wise decision.
*** I have capital losses that I can offset with gains from selling physical gold ****
Pros:
- Easy to manage for me and family.
- ETF is highly liquid and efficient/fair pricing.
- Can be liquidated in fractional amounts, if and when needed.
- Brokerage provide margin, easy to use in extreme emergencies, SIPC coverage.
- No storage fees (Save $120/year bank locker fees).
- No insurance needed (Save $250/year).
- I can liquidate them in coin shows as cash transactions
- Sell long dated, 30% out of the money, call options to bring some cash flow (estimate $1,000/year)
- all ETF transactions are reported to IRS, taxes owed.
- Bank lockers can get damaged
- GLD ETF goes to zero – unlikely
- Harder to liquidate physical bard spread is large
- In my absence, family will find it hard to liquidate
- Can be stolen, damaged, destroyed
Statistics: Posted by Invictus002 — Sat Jan 25, 2025 4:47 pm — Replies 7 — Views 300