Buying gold vs. staying with CHF

Investing / Portfolios
312

In my view there is no point to hedge GOLD. GOLD is gold, that is the whole point of owning gold.

6 Likes
313

in this case the underlying currency should have no impact
and with access to almost free FX conversion via IBKR, the better option would be to buy in the US?

rather than buying in CHF (unhedged) either via VIAC or UBS ETF?

314

I agree. But sometimes I feel the need to understand things that I don’t use myself :grinning_face_with_smiling_eyes:

1 Like
315

:slight_smile: fair enough

316

I looked at buying costs
and the UBS products in USD or CHF have a cost of about 1.2% (everything included)
VIAC indeed does the same at .28% + administration fees of .25% (total .53%)

and GLDM buying via IBKR is at .12%

looking at all this, I might just go with GLDM as it is still 100% physically backed GOLD.

are there any consideration why Swiss stored gold should be considered?

2 Likes
317

I guess if you are worried that the US might try to seize the gold.

ZGLD might be an option.

But nothing beats price/liquidity of GLD/GLDM.

1 Like
318

You can buy that anywhere, not necessarily at UBS.
Plus, ter and admin fees on your aum cannot be added to your buying fees, you don’t buy your entire aum every time


2 Likes
319

In my app it states admin is 0%.

320

I did not add the admin fees on the AUM
I do not use VIAC invest and would solely use for buying gold so I think that would add to its cost

for the SIX trading costs, this is what IBKR proposed when I asked for a trade preview.

321

do you use VIAC invest and have a sizeable amount invested with them?

322

I was quoting your UBS calculation and buying costs
not VIAC.

if I have 1% buying cost and 0.5% admin/custody/product whatever fee on AUM, it’s not 1.5% total
you only buy once, other fees are recurring.

323

sorry, I wasn’t clear and I was mentioning UBS costs
as trading on SIX is much more expensive than on US exchanges.
this 1.2% was suggested by IBKR (not sure how accurate it is)

1 Like
324

Oh ok, right then.

325

I see
 haven’t reached the 7.5k for which I have “Freibetrag”. In few months, I’ll come back here and ask for the optimal solution again :wink:

326

Trading whole ETF shares at SIX with IBKR costs CHF 1.58 + 0.065% but with a minimum of CHF 3.58 with tiered fees, if I remember correctly.

For a 5k trade, you’d pay a bit less than CHF 5 in fees and commission. That’s a lot less than 1.2% and even less than 0.1%, not accounting for the spread.

If you want to invest smaller amounts, I’d suggest investing less frequently to reduce the impact of the minimum fee.

And you should compare over e.g. 10 years, assuming this is a long term investment. At VIAC Invest you pay the 0.53% every year while at IBKR you pay the trading fees only once/twice and only the TER every year.

1 Like
327

There is iShares CSGLDC (hedged in CHF) on Saxo Autoinvest for 0.22% TER and with no other buy fees (only on selling the usual ones).

328

BUYING GOLD ETF DEFEATS THE WHOLE POINT OF BUYING GOLD, “GOLD IS THE ONLY ASSET THAT ISNT SOMEONE ELSE’S LIABILITY”. HOLD PHYSICAL OR GO HOME.

Just kidding. I do wonder what is the consensus about physical vs managed tho
?

329

Absolutely no joke. Gold jewellery is in my prepper bag, and it’s a part of my “now I have to flee” plan. We discussed this somewhere here before.

3 Likes
330

in the prepper thread, right?

1 Like
331

Somehow I buy AUUSI at SaXo for 0.075% stamp duty and 0.08% trading costs. And then TER is 0.23% . Zero custody fees

since its trading in CHF, no fx costs for me