Buy gold inside an RRSP? Or just buying gold in general..

[photon]

Is it possible to buy gold within an RRSP? Of course I can't just take cash out and buy it because I'll be taxed, but if I have cash in my RRSP account is there a way to use it to either buy physical gold, or buy gold in some way that can be redeemed for physical gold at some point (like when society collapses )?

Or even just thoughts on investing in gold.. traditionally a historical high isn't usually the best time to "get in", but the ongoing weakness of the US and as a hedge against inflation is it appropriate even at this price?

[troutman]

Every Saturday morning on QR 77 com, those dudes are telling us "there has never been a better time to buy gold".

[yads]

I know Questrade lets you buy gold inside RRSPs.

[Fozzie_DeBear]

I'm keeping an eye on an ETF HGU:CN which invests in Gold Companies as a possible stock to put into a TFSA...it seems to swing between $9 and $16 once or twice a year...I'm going to take some $ and gamble and try to buy at 10 sell at 14 a couple times

[Bob]

Originally Posted by troutman

Every Saturday morning on QR 77 com, those dudes are telling us "there has never been a better time to buy gold".

When you start hearing in mass media that you need to buy into some market, it's usually already too late. Same thing happened with real estate a few years ago.

[I-Hate-Hulse]

There are a few Gold Bullion ETF's out there that can easily be bought and held inside an RRSP. For example there's the Claymore Gold Bullion ETF (CGL on the TSX) that holds gold bullion in vaults on my behalf. No shares of gold producing companies are held, just bullion.

There's no feature to redeem it for physical gold, but technically if you ever want to you can sell the ETF, take your gains/losses and buy physical gold for the pending apocalypse.

Will the bubble burst? Hard to say when but I like the fact that because it's an ETF, I have a stop loss order in place to auto sell if it every drops below a price I specify. That way I can let er ride knowing I've limited the downside in case of a selloff.

[moncton golden flames]

if you can't touch it, you don't own it.

keep it out of the banks, out of the stock market and buy physical gold. better yet, buy silver.

[photon]

Yeah I've seen some EFT's, but you can't get the actual physical gold if you want.. then again having a stop loss is a good idea.

Thanks for Questrade, it looks like that would work though I'd have to transfer to them, yet another company to deal with doesn't appeal.

Good point about the QR77, though I'm looking at this less as a straight investment and more as a thing to hedge against the US falling backwards significantly.

[moncton golden flames]

Originally Posted by photon

Good point about the QR77, though I'm looking at this less as a straight investment and more as a thing to hedge against the US falling backwards significantly.

regardless of the purpose of the purchase, you need possession of it.

[I-Hate-Hulse]

Originally Posted by moncton golden flames

regardless of the purpose of the purchase, you need possession of it.

I suppose if I ask you why, I'm going to get a big spiel on some doomsday scenario where I'm hoarding bullets and gold coins? Or that the banks are corrupt entities...that will vaporize my savings into nothingness when the Ponzi scheme that they are collapses?

If so, I'll take my chances that scenario is less likely to happen than someone breaking into my house and swiping a safe. That and it's a lot more liquid in ETF form.

If not, do tell.

[macker]

but I thought it was a bubble......Gold is on track for it's 10th consecutive yearly gain and the case for holding 7-10% of your portfolio in Gold today is much better then it was 10 years ago. I still like second (Silver) better at this moment and Copper has been the true winner of the metals in my portfolio but with the US dollar going down every metals a winner baby http://www.youtube.com/watch?v=qMxUfJwdxZk Boot Sauce approved

[photon]

Well, some people do buy gold as a hedge against society going south really badly, and in that case an EFT isn't going to be any help.

Mind you even having possession of it isn't really that important, it's being able to keep it. Unless you can protect against a gang of thieves shooting you and taking your gold away, possession in your basement is just as useless as possession on paper.

[macker]

Mind you even having possession of it isn't really that important, it's being able to keep it. Unless you can protect against a gang of thieves shooting you and taking your gold away, possession in your basement is just as useless as possession on paper.[/QUOTE]



Everything in moderation and having it is fine but no reason to avoid an ETF that has the advantage of being more liquid, and you don't need to worry about shipping or storage or having your home invaded for that matter(no pun intended)...The only stop loss you can get in that situation is a shot gun Also with ETF's make sure that your currency outlook is reflected in your holdings.

[Brewmaster]

Look into the Central Fund of Canada (CEF) as a good fund that holds both gold and silver. I also think that buying gold mining corporations might be a better option right now than buying bullion, but that hasn't been the case over the last 5 years.

[Shazam]

Get your grill done:

[Slava]

The historic value of gold hasn't increased as much as some believe though. Back in Roman times an ounce of gold would buy you a nice toga and a pair of sandals. Today for that same price you could get a good suit and a pair of shoes for roughly the same price.

(Prepares to hear replies regarding suits from Moores, etc. But you get my point here!)

[moncton golden flames]

Originally Posted by I-Hate-Hulse

I suppose if I ask you why, I'm going to get a big spiel on some doomsday scenario where I'm hoarding bullets and gold coins? Or that the banks are corrupt entities...that will vaporize my savings into nothingness when the Ponzi scheme that they are collapses?

If so, I'll take my chances that scenario is less likely to happen than someone breaking into my house and swiping a safe. That and it's a lot more liquid in ETF form.

If not, do tell.

i don't like etf's because they don't hold an equal value of physical gold in their vault, compared to the amount of paper gold they sell. an etf fund might have 1,000,000 oz of gold in their vault, but might sell 2,000,000 oz of etf gold. i like my 1:1 ratios! i also don't like the stock market...but that's a whole different story.

i'm actually bigger on silver than gold, for two reasons. 1. it's easier to attain, being around $24.50 oz lately. 2. eventually, i believe the historic gold/silver ratio has to come back somewhere close to 'typical' at 12:1...it's currently 56:1, this would mean a huge value boost to silver.

i am no expert, just a guy who feels comfortable with his decisions.

[Slava]

I like silver more than gold as well (and I like copper as well), because they're actually useful.

I still have no idea what I will do when the financial system crumbles and I have my wedding ring to use to survive! I think that I would prefer a shotgun and flock of chickens at that point?

[moncton golden flames]

Originally Posted by Slava

I like silver more than gold as well (and I like copper as well), because they're actually useful.

I still have no idea what I will do when the financial system crumbles and I have my wedding ring to use to survive! I think that I would prefer a shotgun and flock of chickens at that point?

your ring will be used for barter. it will have a great value and might allow you to get those chickens or some ammo.

[moncton golden flames]

i meant to add. if historic 12:1 gold/silver ratio were true today....

current gold prices of $1386.72 would give silver a value of $115.56 or conversely if silver were $24.73, gold would be worth $296.76. either way, compared to gold, silver will shine!