Physical Gold ETF USD/AUD

Discussion in 'Stocks & Derivatives' started by dagsgarrett, Feb 13, 2019.

  1. dagsgarrett

    dagsgarrett Member Silver Stacker

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    Hi,

    In your opinion which Physical Gold ETF could perform better and why if you believe the AUD will further decrease against the USD?

    AAAU Physical Gold ETF which is in denominated in USD? (NYSE)

    GOLD Physical Gold ETF which is denominated in AUD? (ASX)

    Thanks
     
  2. bron.suchecki

    bron.suchecki Active Member

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    They will both perform the same as they are denominated in gold. The currencies you mention are just what denomination they trade in on their exchanges. If you try and buy AAAU you are going to have to convert your AUD to USD, and then back again into AUD, so it will still "perform" the same as GOLD. The only one that will give you a USD Gold-like performance is QAU but that will slightly underperform as the hedging isn't costless or perfect.
     
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  3. dagsgarrett

    dagsgarrett Member Silver Stacker

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    Thanks Bron much appreciated.
     
  4. bron.suchecki

    bron.suchecki Active Member

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    I think the AUD/USD is more like to weaken than strengthen from here, so would not suggest QAU and just buy gold with AUD
     
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  5. JOHNLGALT

    JOHNLGALT Well-Known Member

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    below.
     
    Last edited: Feb 14, 2019
  6. JOHNLGALT

    JOHNLGALT Well-Known Member

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    Go for gold, just like Betty Cuthbert, I was there behind her, up in the Number 13 Southern Stand in 1956 (as a 9 y/old). What a thrill, to go for gold. _JOHNLGALT.

     
  7. SlyGuy

    SlyGuy Active Member

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    Why not just convert the currency (solves the USD being stronger problem), open a US investing account, and fund it to buy GLD or IAU to get the rough performance of gold?
    The only downside is that those are fairly heavily taxed, but it does get you gold exposure and in USD.
     
  8. bron.suchecki

    bron.suchecki Active Member

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    It doesn't give you USD gold exposure because of the "just convert the currency" at the start. AUD -> USD -> gold is the same as AUD -> gold. The only benefit of a USD account is that you can change the timing of the switch in and out of USD, slightly separating the AUD/USD and USD/Gold exposures.
     
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  9. dagsgarrett

    dagsgarrett Member Silver Stacker

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    I am weighing up the difference/benefits from investing in a variety of unallocated bullion options, I'e Perth Mint Directly (unallocated), as opposed to purchasing via ASX PMGOLD?

    Both have similar attributes, I e Liquid, Convenience, Government Guaranteed. Convertible to Physical.

    One difference from what I understand

    PMGOLD - 0.15% management fee, and brokerage fees?
    Unallocated - No storage fees

    Any other benefits/differences others can point out?

    *Note - I understand the if you don't hold it you don't own it simply looking for alternative methods for exposure to gold whilst limiting costs.

    Regards
     
  10. SilverDJ

    SilverDJ Well-Known Member

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    Perth Mint is the way to go in Australia. The buy/sell spread is small, and you might as well go unallocated for zero fees.
    Forget about the "if you don't hold it you don't own it" thing. Anything that happens that would be so major so that this would be a real issue, you'd be able to see it coming. And given that you can convert to physical and have it delivered with a click of a mouse (or sell and withdraw the money) it's practically not an issue.
    Only advantage to ETF would be if you already had an brokerage account and it would be easier to do it that way. e.g. less paperwork in SMSF for example
     
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