See my reply above. You still have to adjust the cost basis of your shares as I describe IMO (as a non-accountant). You can do it the quick and dirty way I describe. But you have to account for the sales by the GLD trust TWICE - cap gains and then adjusted basis upon sale of GLD.
It is a rip off by the SEC or whoever set up these ridiculous rules. You can hold DGP in a taxable account btw. Not perfectly liquid, but I haven't had big problems with that. They don't recommend it for a long term hold of gold as with all 2X, 3X etc. instruments. If you do hold it over a year, there is no 28% collectible tax however as it's a derivative. If your tax rate is lower than 28% I assume it would save you taxes on short term trades too. IMO. Maybe the "Expert" can respond to those assertions?
