A. Many good ways to invest/trade in gold
and I'm quite certain others will weigh
in on your specific question . . .
HOWEVER, be aware of the following so as
to be more fully aware of what
additional factors to consider when
dealing specifically with gold and
silver ETFs . . .

HEADS UP - BE AWARE - FYI

Gold and silver receive special
treatment in the tax code. Considered
'collectibles', not
'capital assets', they don't qualify for
the maximum 15% tax rate on long term
capital
gains. Instead, gains on the sale of
gold and silver investments, including
gold and
silver backed ETF's, and gold bullion
and coins (except certain US issued
coins) are taxed at a maximum tax rate
of 28% when such investments have been
held for more than a year. When these
assets are held for less than one year,
gains are taxed as ordinary income.

Precious metals ETF's, such as GLD, are
organized as grantor trusts. Investors
in an ETF are treated as owning
individual interests in the metal owned
by the fund. When an investor sells
shares in the ETF, the tax code treats
that investor as having sold a share of
the metal backing the fund. Thus, the
investor is 'subject to' the maximum tax
on collectibles . . . currently 28%

IF the ETF sells some of its gold or
silver, as funds typically do to pay
expenses,
including management fees, then gains or
losses on such sales flow through to the
fund's investors, though they receive no
cash distribution. In the case of gains,
the investors must include their share
of the profit in gross income, which
likewise would be taxable at the maximum
28% rate.

GLD does provide instructions to
shareholders on its website how to
compute the gain or loss when the ETF
sells metal to pay expenses.

ALSO OF NOTE: the above tax
considerations are 'moot' (of no
consequence) if the ETF is
held within a qualified IRA . . . though
the IRS has not stated its view
publicly.

A. The only one I own : SLX,
too hard pick a winner out all of them