Investing in gold / gold bullion?

19
Posted 15th Nov
Wondering if anyone has any experience of investing in gold and any advice or tips?
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19 Comments
It’s a really quick way to get scammed unless you use proper investment platforms. Gold is at very high prices anyway so it’s not the best time to invest when the prices are high as they won’t climb much more and as governments pay back deficits etc the price of gold will gradually decline.

If you have millions in the bank it’s probably worth it, if you only have a few thousand and are only looking short term it isn’t.
Edited by: "cmdr_elito" 15th Nov
Gold doesn't pay dividends amongst dozens of other reasons not to invest. Like buying lego and hoping it appreciates in value because of performance in the past.

Stocks and shares is what you want.
Thanks guys, got a few thousand I'd like to invest but not really sure where.
Obviously high street rates aren't worth bothering with, just looking for something better. Don't mind a
bit of risk, but nothing crazy!
cycleman15/11/2019 11:30

Thanks guys, got a few thousand I'd like to invest but not really sure …Thanks guys, got a few thousand I'd like to invest but not really sure where.Obviously high street rates aren't worth bothering with, just looking for something better. Don't mind a bit of risk, but nothing crazy!


S&S isa, in a fund. I have a good chunk in vanguard lifestrategy 60 which is steady (up 1.1% since purchase), will never make you rich. My AMD and tesla shares have done really well since I purchased in summer, got my eye on metro bank shares when I flog my tesla ones in new year. For a bit of fun I have a few k in peer to peer lending - a lot more risk with this but has earned me just shy of £1000 the last 12 months, but have one bad loan at the moment with moneything which could wipe half of that out.

Otherwise a LISA if you don't yet own a house, or see what regular savers there are, or nationwide offer 5% I think still up to £2500
Edited by: "jaydeeuk1" 15th Nov
I assume you want physical gold and not that gold in paper format where a company still has your money.
I would go for bars and avoid coins as they cost more in labour and expertise to craft a coin.
As others on here have said, yes the price of gold is high currently and uncertainty remains due to upcoming General Elections and then we have Brexit deadline in new year.
I predict the pound will likey take a hammering and fall even lower in the upcoming months therefore gold price will be higher.
There are other factors which effect gold prices
Gold prices are not dictated to by the £, it is only a small factor of the price.
Edited by: "fearona" 15th Nov
lamboo15/11/2019 11:51

I assume you want physical gold and not that gold in paper format where a …I assume you want physical gold and not that gold in paper format where a company still has your money.I would go for bars and avoid coins as they cost more in labour and expertise to craft a coin.As others on here have said, yes the price of gold is high currently and uncertainty remains due to upcoming General Elections and then we have Brexit deadline in new year.I predict the pound will likey take a hammering and fall even lower in the upcoming months therefore gold price will be higher.There are other factors which effect gold prices


That few thousand will buy an ounce....probably.
Just remember shares can and do go down as well as up. My mother has a share yielding a juicy 7%. Only problem is the share price has dropped more than 30% to produce this yield, so she's just clawing some of her capital loss back at the moment. Also bear in mind that it is highly likely someone bought these at the arrow mark and still hold them.


38993623-Hfabu.jpg
If you like the idea of gold as an investment, that's fine. It is usually a minor part of a portfolio to hedge against global 'bad' times. If you believe that a global recession is on its way, as some do, gold is a good place to be and will generally perform well in those circumstances. Have a look at Blackrock Gold & General. Its a fund of gold producers. It might be unwise to put all your money in this area, For fire and forget, the Vanguard fund suggested above is a better bet.
Gold price chart for reference
6 month breakdown
Below is actual price but to buy from someone its more likely near £1200 per ounce
38994756-xhaLQ.jpg
jaydeeuk115/11/2019 11:47

S&S isa, in a fund. I have a good chunk in vanguard lifestrategy 60 which …S&S isa, in a fund. I have a good chunk in vanguard lifestrategy 60 which is steady (up 1.1% since purchase), will never make you rich. My AMD and tesla shares have done really well since I purchased in summer, got my eye on metro bank shares when I flog my tesla ones in new year. For a bit of fun I have a few k in peer to peer lending - a lot more risk with this but has earned me just shy of £1000 the last 12 months, but have one bad loan at the moment with moneything which could wipe half of that out.Otherwise a LISA if you don't yet own a house, or see what regular savers there are, or nationwide offer 5% I think still up to £2500


Thank you sounds interesting.
airbus33015/11/2019 14:23

If you like the idea of gold as an investment, that's fine. It is usually …If you like the idea of gold as an investment, that's fine. It is usually a minor part of a portfolio to hedge against global 'bad' times. If you believe that a global recession is on its way, as some do, gold is a good place to be and will generally perform well in those circumstances. Have a look at Blackrock Gold & General. Its a fund of gold producers. It might be unwise to put all your money in this area, For fire and forget, the Vanguard fund suggested above is a better bet.


Thank you, Vanguard sounds a likely prospect.
cmdr_elito15/11/2019 12:30

That few thousand will buy an ounce....probably.


I've got around £5 - 10 thousand I could invest in something with moderate risk, thank you for the info.
I know gold is high now but a few articles I've read seem to think it could still go a lot higher with the precarious global situation.
I did dabble with Forex a few years ago, like most people who've tried made a fortune with a demo account but going live I just couldn't make it work.
Fortunately came out at break even, but incredibly frustrating.
Edited by: "cycleman" 15th Nov
cycleman15/11/2019 14:48

I've got around £5 - 10 thousand I could invest in something with moderate …I've got around £5 - 10 thousand I could invest in something with moderate risk, thank you for the info.I know gold is high now but a few articles I've read seem to think it could still go a lot higher with the precarious global situation.


Couple of comments since you have a fair chunk of cash to invest.
Moderate Risk - what that is depends on lots of things, age, income, financial resilience, mental attitude. You might think you are a moderate risk investor, but you might be high or low compared to someone else. Have a real think about your attitude to risk.
Asset Allocation- basically spreading the risk, is difficult with the sum mentioned. Far better to use the massive resources that a fund/investment trust offers and spread your risk along with thousands of other small investors.
Pound Cost Averaging- we live in volatile times. Drip feeding your cash in over a number of months allows you to average out the peaks and troughs that may appear over the next year.
GL
airbus33015/11/2019 15:00

Couple of comments since you have a fair chunk of cash to invest.Moderate …Couple of comments since you have a fair chunk of cash to invest.Moderate Risk - what that is depends on lots of things, age, income, financial resilience, mental attitude. You might think you are a moderate risk investor, but you might be high or low compared to someone else. Have a real think about your attitude to risk.Asset Allocation- basically spreading the risk, is difficult with the sum mentioned. Far better to use the massive resources that a fund/investment trust offers and spread your risk along with thousands of other small investors.Pound Cost Averaging- we live in volatile times. Drip feeding your cash in over a number of months allows you to average out the peaks and troughs that may appear over the next year.GL


Thank you, makes a lot of sense.
I'm really wanting to retire at 60 (3 years off) my total savings are around 90 thousand but as mentioned would be prepared to risk 5 - 10.
I need to keep the bulk of my savings as safe as can be as my work pension is not enough to live on and I'd have to subsidise it until I could claim my state pension.
I was hoping to have a bit more behind me by now but various life events have cost me.
cycleman15/11/2019 15:15

Thank you, makes a lot of sense.I'm really wanting to retire at 60 (3 …Thank you, makes a lot of sense.I'm really wanting to retire at 60 (3 years off) my total savings are around 90 thousand but as mentioned would be prepared to risk 5 - 10.I need to keep the bulk of my savings as safe as can be as my work pension is not enough to live on and I'd have to subsidise it until I could claim my state pension.I was hoping to have a bit more behind me by now but various life events have cost me.


Hi, coincidentally, I am in exactly the same position as yourself, except I have reached the big 60. The best thing is to educate yourself about money/investing/retirement. It could well be that your best option is a SIPP. Your contributions would immediately be uplifted by min. 20% tax relief. Far more than you can safely make from investment over the time period you looking at. Within the Sipp wrapper you can choose appropriate investments along the lines discussed. Even LS60 might be a bit racy. Watch out for platform fees, they secretly eat away at your money.
Link below for some research.
monevator.com/
I did look into it - if you buy the gold bars, you get sent them without a problem, but I think it wont be so easy shipping them when you need to sell.

There are companies that say they hold the gold for you, but who knows if any gold is involved at all if they hold it? Like others say you have to go with a reputable company to avoid being scammed as well.
Bigfootpete15/11/2019 18:38

I did look into it - if you buy the gold bars, you get sent them without a …I did look into it - if you buy the gold bars, you get sent them without a problem, but I think it wont be so easy shipping them when you need to sell. There are companies that say they hold the gold for you, but who knows if any gold is involved at all if they hold it? Like others say you have to go with a reputable company to avoid being scammed as well.


Very true
I've used a firm located in Birmingham who dispatch for next day delivery before 1PM, its all insured by them including delivery.
You do have to pay a higher premium but worth the protection and hassle free.
In fact, they even allow you to collect your order in person from their office but order and payment must be completed in advance, but it dosent make it cheaper lol
Shame they are too far
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