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  • FIRST POST
    • keflin2612
    • By keflin2612 12th Mar 17, 11:40 AM
    • 1Posts
    • 1Thanks
    keflin2612
    7 years of gold
    • #1
    • 12th Mar 17, 11:40 AM
    7 years of gold 12th Mar 17 at 11:40 AM
    Hi, my name is Kevin and I’m from the UK.
    I paid my mortgage off in 2011 but kept my endowment running. The endowment has now matured and I have £23,000 in the bank “doing nothing” and I wanted to know if it would be worth me investing the 23000 in gold bullion. I have seven years to go before I retire and may or may not need it back when I do.
    If I do (depending on the answerers I get from here) I need to know where the best place is for me to buy “as I’m in the UK” and where is the best place for me to sell when the time comes, also is it better to invest in bars or coins.
    Finally is it a good time to INVEST NOW.
    Thanks.
    Kevin.
Page 1
    • dunstonh
    • By dunstonh 12th Mar 17, 11:48 AM
    • 88,789 Posts
    • 54,134 Thanks
    dunstonh
    • #2
    • 12th Mar 17, 11:48 AM
    • #2
    • 12th Mar 17, 11:48 AM
    I wanted to know if it would be worth me investing the 23000 in gold bullion.
    Gold is often worth considering for around 5% of your portfolio. So, what are you doing with the rest of your £500,000 available? As I doubt you were genuinely considering putting most of your wealth into such an asset class.

    Finally is it a good time to INVEST NOW.
    You wont know the answer to that until you look back in 7 years time.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • sandsy
    • By sandsy 12th Mar 17, 11:49 AM
    • 1,147 Posts
    • 666 Thanks
    sandsy
    • #3
    • 12th Mar 17, 11:49 AM
    • #3
    • 12th Mar 17, 11:49 AM
    Well nobody knows what the price of gold will be in 7 years time, or any other time, so very hard to say if it will be worth it. You could buy about 23 krugerrands for that amount.

    Alternatively, you could invest some of the money in funds in an ISA wrapper now, and add the rest after the new tax year starts on 6 April.
    • atush
    • By atush 12th Mar 17, 11:51 AM
    • 16,156 Posts
    • 9,851 Thanks
    atush
    • #4
    • 12th Mar 17, 11:51 AM
    • #4
    • 12th Mar 17, 11:51 AM
    Why not put it somewhere, in something that will grow and earn dividends in a tax free environment? Like a pension perhaps?
    • ChesterDog
    • By ChesterDog 12th Mar 17, 11:57 AM
    • 755 Posts
    • 1,300 Thanks
    ChesterDog
    • #5
    • 12th Mar 17, 11:57 AM
    • #5
    • 12th Mar 17, 11:57 AM
    Hi, my name is Kevin and I’m from the UK.
    I paid my mortgage off in 2011 but kept my endowment running. The endowment has now matured and I have £23,000 in the bank “doing nothing” and I wanted to know if it would be worth me investing the 23000 in gold bullion. I have seven years to go before I retire and may or may not need it back when I do.
    If I do (depending on the answerers I get from here) I need to know where the best place is for me to buy “as I’m in the UK” and where is the best place for me to sell when the time comes, also is it better to invest in bars or coins.
    Finally is it a good time to INVEST NOW.
    Thanks.
    Kevin.
    Originally posted by keflin2612
    No to the first question.

    Probably not to the second.
    I am one of the "Dogs of the Index".
    • AnotherJoe
    • By AnotherJoe 12th Mar 17, 12:30 PM
    • 7,054 Posts
    • 7,521 Thanks
    AnotherJoe
    • #6
    • 12th Mar 17, 12:30 PM
    • #6
    • 12th Mar 17, 12:30 PM
    You dont "invest" in gold, you speculate in it. It has minimal intrinsic worth.
    Theres no knowing what it will be worth in 7 years time, could easily be half or double.
    • ColdIron
    • By ColdIron 12th Mar 17, 12:45 PM
    • 3,286 Posts
    • 3,781 Thanks
    ColdIron
    • #7
    • 12th Mar 17, 12:45 PM
    • #7
    • 12th Mar 17, 12:45 PM
    How are you with the idea that it, whatever it is, could be worth less in 7 years time. Would you be happier with the certainty of savings and accept a possible lower return?
    • kidmugsy
    • By kidmugsy 12th Mar 17, 1:08 PM
    • 9,457 Posts
    • 6,239 Thanks
    kidmugsy
    • #8
    • 12th Mar 17, 1:08 PM
    • #8
    • 12th Mar 17, 1:08 PM
    Gold Sovs, not bullion. No CGT to pay.
    • Biggles
    • By Biggles 12th Mar 17, 3:51 PM
    • 7,361 Posts
    • 4,754 Thanks
    Biggles
    • #9
    • 12th Mar 17, 3:51 PM
    • #9
    • 12th Mar 17, 3:51 PM
    You dont "invest" in gold, you speculate in it. It has minimal intrinsic worth.
    Originally posted by AnotherJoe
    Exactly. An investment is something that will either bring an income or grow over the long term. Gold is neither of those things.
    • Gadfium
    • By Gadfium 12th Mar 17, 5:18 PM
    • 615 Posts
    • 1,129 Thanks
    Gadfium
    《Drums fingers on table,checks watch again, wonder where DiggerUK is to tell everyone how good gold has been for him...》

    Why gold? Why not silver, platinum, copper, or the 3.30 at Kempston?
    • kidmugsy
    • By kidmugsy 12th Mar 17, 8:15 PM
    • 9,457 Posts
    • 6,239 Thanks
    kidmugsy
    Why gold? Why not silver, platinum, copper, or the 3.30 at Kempston?
    Originally posted by Gadfium
    Yeah, silver has been good for us. As for the hosses; only if I were the bookie.
    • markj113
    • By markj113 12th Mar 17, 10:45 PM
    • 103 Posts
    • 82 Thanks
    markj113
    《Drums fingers on table,checks watch again, wonder where DiggerUK is to tell everyone how good gold has been for him...》

    Why gold? Why not silver, platinum, copper, or the 3.30 at Kempston?
    Originally posted by Gadfium
    Because silver, platinum and copper attract 20% VAT, gold does not.
    • Carrieanne
    • By Carrieanne 12th Mar 17, 11:51 PM
    • 59 Posts
    • 54 Thanks
    Carrieanne
    Best place to buy? Hatton Garden Metals. Trouble is they're out of stock most of the time. Next best is Baird & Co (goldline). Coins, British ones, would be the sensible choice as they are CGT free. Britannias and Queen's Beasts offer slightly better value for money than sovereigns. Best place to sell? Hatton Garden Metals. (Incidentally, if you ever want to sell scrap gold, Lois Jewellery in Birmingham pay more than anyone else does.) Is it a good time to buy? With the world drowning in debt, then yes. But that's not to say its price cannot be manipulated lower by those who control its price and create volatility to scare people away from protecting themselves.
    • Carrieanne
    • By Carrieanne 12th Mar 17, 11:55 PM
    • 59 Posts
    • 54 Thanks
    Carrieanne
    《Drums fingers on table,checks watch again, wonder where DiggerUK is to tell everyone how good gold has been for him...》

    Why gold? Why not silver, platinum, copper, or the 3.30 at Kempston?
    Originally posted by Gadfium
    Why gold? You asked.

    “Money is gold, nothing else.” JP Morgan, 1912.
    • DiggerUK
    • By DiggerUK 13th Mar 17, 7:49 AM
    • 2,729 Posts
    • 2,589 Thanks
    DiggerUK
    ............I have seven years to go before I retire and may or may not need it back when I do.
    ............Finally is it a good time to INVEST NOW.........
    Originally posted by keflin2612
    Hi Kevin, allow me to introduce myself, I'm MSE's 'resident gold expert'
    Seven years is a perfect time frame. I suspect the gold price will dip in the near future, so I suggest you put your 23k in easy access, and buy in over the next 6-12 months. If it goes below £850 an ounce I would buy straight in. Make a decision your happy with.

    Unless your other savings could give you CGT problems, don't bother too much over buying CGT free UK legal tender or bullion. Go cheapest, gold is gold.

    Bairds and Hatton Garden are reputable. I would add these two as well. Cost out which is cheapest, p&p, and number you buy make a difference.
    https://atkinsonsbullion.com/
    http://www.elminvestments.co.uk/gold-coins.html

    Something coming up from Royal Mint might also interest you. Full details still to be announced, but it is hinted that a kilo could be stored for free. http://www.royalmint.com/rmg
    Only problem is nobody knows how much you will have to initially pay. Advantage seems secure storage..._
    I am not now, nor have I ever been, a Financial Adviser.
    Forward, to the 'British Spring'
    • Malthusian
    • By Malthusian 13th Mar 17, 10:25 AM
    • 2,596 Posts
    • 3,701 Thanks
    Malthusian
    Why gold? You asked.

    “Money is gold, nothing else.” JP Morgan, 1912.
    Originally posted by Carrieanne
    Well if empirically false statements that an eight-year-old child could disprove from a guy who's been dead for a century won't convince you of the merits of gold as an investment, then nothing will.
    • cloud_dog
    • By cloud_dog 13th Mar 17, 11:20 AM
    • 3,101 Posts
    • 1,677 Thanks
    cloud_dog
    Hi Kevin, allow me to introduce myself, I'm MSE's 'resident gold expert'
    Originally posted by DiggerUK
    Ummm.....
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Gadfium
    • By Gadfium 13th Mar 17, 11:32 AM
    • 615 Posts
    • 1,129 Thanks
    Gadfium
    Ummm.....
    Originally posted by cloud_dog

    Self-imposed "expert"
    • badger09
    • By badger09 13th Mar 17, 12:11 PM
    • 5,112 Posts
    • 4,325 Thanks
    badger09
    Hi Kevin, allow me to introduce myself, I'm MSE's 'resident gold expert evangelist'
    Originally posted by DiggerUK
    fixed that for you
    • kidmugsy
    • By kidmugsy 13th Mar 17, 12:18 PM
    • 9,457 Posts
    • 6,239 Thanks
    kidmugsy
    Because silver, platinum and copper attract 20% VAT, gold does not.
    Originally posted by markj113
    Not if you hold them as ETCs, or hold silver at the Perth Mint, or at Bullion Vault, and so on.

    I plead ignorance: what's the VAT situation if you buy second hand jewellery or old silver coins?
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