Gold investing

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spender
spender Posts: 1,157 Forumite
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in Savings & investments
Can anybody help a few weeks ago there was a TV programme which had a feature about investing in gold. Can anybody help and tell me which programme it was or point me in the right direction of gold investing (not a large amount!!!!!!). Thanks
No Matter what you do there will be critics.
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  • aztec21
    aztec21 Posts: 134 Forumite
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    If you are just looking to invest small amounts of money in gold a common way to do it is to buy Krugerrands. You can buy them on eBay or from this website.

    You should note that historically Gold has performed very poorly as a long term investment
  • johnofhertford
    johnofhertford Posts: 180 Forumite
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    This is an extract from an article in today's Times:

    Invest in gold
    Gold is considered by many as the perfect investment in hard times. There is no risk of default and, unlike money, banks cannot print more.

    At the moment, the global supply of gold is falling and demand is on the rise, pushing up the value, which currently stands at $1,000 an ounce. Mr Dampier says: “This sounds high, but the last gold high was in 1980 at $850 an ounce, which in today's money is equivalent to $2,500.”

    Investec, which runs the Global Gold Fund, expects a further 70 per cent rise, fuelled by demand from Asian banks and a slowdown in mining. Low interest rates in the US also make the yield on gold look relatively high. Exchange-traded funds, such as iShares COMEX Gold Trust, are the easiest way of buying physical gold, but goldmining funds, such as Investec Global Gold and Merrill Lynch Gold & General, are also worth a look. Up to a third of these funds can be invested in other precious metals, such as platinum.

    Link to full article: http://business.timesonline.co.uk/tol/business/article3547209.ece
  • martinman3
    martinman3 Posts: 727 Forumite
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    johnofhertford wrote: »
    Exchange-traded funds, such as iShares COMEX Gold Trust, are the easiest way of buying physical gold
    A true Gold Bug would probably say that all you are really buying is a piece of paper, if you are happen with that then fine.
  • munk
    munk Posts: 993 Forumite
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    I read that article today in the Times as well.

    Also came across an interesting article on a resources site the other day that shows the real value of gold historically:

    Gold_Price_Real_Rate_of_Interest2.png

    Here is the associated article for the above graph:
    Gold Breaks $1,000 Threshold!

    As you can see in real terms the price of gold still has some way to go before it reaches an all time high in real terms. Still though, gold is highly volatile and at the first sign of the US dollar recovering - amongst a myriad of other things - there could be the prospect of the market falling back.

    As for investing in gold I like the Merrill Lynch Gold & General fund which incorporates a variety of other precious metals as well as gold so provides some slight diversification if the gold price should falter.

    Some more articles from the site above:
    Precious Gold 101: As Reliable as Ever
    and for some balance, warnings of overheating in Indian Gold markets:
    Gold Market Overheated, Brisk Selling In India
  • evosy1978
    evosy1978 Posts: 636 Forumite
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    hello all

    can i ask when buying gold can you DIY or do you have to have a broker do it for you, therefore paying a charge on top of the price of the gold?

    Also, when are you allowed to sell it back (if this is how its works) for example could you buy some one week and then if the price of gold per ounce was to go up a week later could you then sell it back thus making a profit.?

    Finally what is the minimum amount of gold you can buy.??

    total novice says thanks for any help
  • surreysaver
    surreysaver Posts: 4,135 Forumite
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    spender wrote: »
    Can anybody help a few weeks ago there was a TV programme which had a feature about investing in gold. Can anybody help and tell me which programme it was or point me in the right direction of gold investing (not a large amount!!!!!!). Thanks

    The One Show had a feature a little while ago - was it that programme you saw?
    I consider myself to be a male feminist. Is that allowed?
  • surreysaver
    surreysaver Posts: 4,135 Forumite
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    evosy1978 wrote: »
    hello all

    can i ask when buying gold can you DIY or do you have to have a broker do it for you, therefore paying a charge on top of the price of the gold?

    Also, when are you allowed to sell it back (if this is how its works) for example could you buy some one week and then if the price of gold per ounce was to go up a week later could you then sell it back thus making a profit.?

    Finally what is the minimum amount of gold you can buy.??

    total novice says thanks for any help

    If you buy gold that is legal tender (e.g. a Sovereign has a face value of £1) there is no Capital Gains tax to pay if you make enough profit. The minimum amount of gold you can buy could be a half-Sovereign, or 1/10 ounce bars. www.taxfreegold.co.uk has plenty of information, although shop around if you're going to buy some.
    I consider myself to be a male feminist. Is that allowed?
  • cloud_dog
    cloud_dog Posts: 6,063 Forumite
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    munk wrote: »
    As for investing in gold I like the Merrill Lynch Gold & General fund which incorporates a variety of other precious metals as well as gold so provides some slight diversification if the gold price should falter.
    Sorry to be picky but....................... This fund like alot of others invests in companies which are linked (mine / refine, etc) PM's etc, it does not hold actual bullion.

    cloud_dog
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • cloud_dog
    cloud_dog Posts: 6,063 Forumite
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    spender wrote: »
    ..........or point me in the right direction of gold investing (not a large amount!!!!!!).
    Have you done a search of this board for the info, it has been discussed numerous times and a large number of options have been listed and discussed, such as GBS, CEF, numerous ETC's (commodity ETF), etc, etc.

    Myself and MM3 seem to both hold a similar view of ETC's (Gold/PM ETF's) in that they are primarilly based on options/futures contracts. The whole reason for investing / holding gold (primarilly) is because of market / finacial uncertainty (meltdown). In this case you really want to know your money (investment) is safe.

    cloud_dog
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • spender
    spender Posts: 1,157 Forumite
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    Thanks very much for all the replies, am going to be looking into it all. I believe it must of been the One Show as OH watches that every night!
    No Matter what you do there will be critics.
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