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    • ripplyuk
    • By ripplyuk 6th Jul 17, 10:39 AM
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    ripplyuk
    Is buying gold a good idea?
    • #1
    • 6th Jul 17, 10:39 AM
    Is buying gold a good idea? 6th Jul 17 at 10:39 AM
    I know absolutely nothing about this apart from reading a little on google. My partner wants to buy some gold and I want to find out some opinions before he does that. It isn't so much for the investment value as this isn't a huge amount of money but I don't want him to lose money either. He says he wants something 'physical' rather than investing in stocks/shares etc.

    Is this a good idea? Could anyone recommend somewhere reputable to buy this? I've looked at the Royal mint but then I read it's overpriced there. I'm worried he'll buy from somewhere dodgy and get ripped off. He is talking about krugerrands. Are they the best way to have gold, or is bullion/other coins better?

    Also, would antiques be more worthwhile to spend to the money on?
Page 1
    • Drp8713
    • By Drp8713 6th Jul 17, 10:48 AM
    • 747 Posts
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    Drp8713
    • #2
    • 6th Jul 17, 10:48 AM
    • #2
    • 6th Jul 17, 10:48 AM
    He would be better off learning about investing in equity funds. They are diversified so not as risky as he thinks, and over time, the companies the funds hold will make profits, which they will invest some of to grow the business and pay some to your fund as dividends. Whereas your coin will still be a coin, and ita value will be whatever someone wants to pay for it.

    That being said I would rather hold gold than cash. If he insists on gold, try Hatton Garden Metals, they usually sell at a few percent above spot. He might want to look at UK coins as they are CGT free.
    • Elijah Bailey
    • By Elijah Bailey 6th Jul 17, 11:01 AM
    • 85 Posts
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    Elijah Bailey
    • #3
    • 6th Jul 17, 11:01 AM
    • #3
    • 6th Jul 17, 11:01 AM
    The only reason to buy gold is when you are apologizing to her for what you said about her mum.
    • Zanderman
    • By Zanderman 6th Jul 17, 11:16 AM
    • 1,288 Posts
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    Zanderman
    • #4
    • 6th Jul 17, 11:16 AM
    • #4
    • 6th Jul 17, 11:16 AM
    Also, would antiques be more worthwhile to spend to the money on?
    Originally posted by ripplyuk
    As an investment? Not unless you're an expert.

    And bear in mind antiques have fashions and trends - things that are sought after and valued now may not be so sought-after in, say, 10 years time and so may lose value not gain it. My late father bought lots of antiques and collectibles as 'investments' in his day - and most of those are virtually unsaleable without loss now.
    • atush
    • By atush 6th Jul 17, 11:24 AM
    • 16,333 Posts
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    atush
    • #5
    • 6th Jul 17, 11:24 AM
    • #5
    • 6th Jul 17, 11:24 AM
    A very small amount of gold as part of your overall portfolio would be fine.

    But that doesnt sound the case here.

    No 1, he wants to buy it and keep it. What if your house burns down and you cant find it? What if it gets stolen?

    No2, buy when the price is low. IMHO it isnt low.

    I hold gold, I bought years back when about half the price it is now. I sold half when it got up to $1400/ounce.
    Last edited by atush; 06-07-2017 at 4:16 PM.
    • cloud_dog
    • By cloud_dog 6th Jul 17, 11:51 AM
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    cloud_dog
    • #6
    • 6th Jul 17, 11:51 AM
    • #6
    • 6th Jul 17, 11:51 AM
    Additionally the £ has taken a significant hit over the past 12 months (due to Brexit concerns) which makes buying gold in £ more expensive that it previously would (based on the $ cost).

    I have no crystal ball but, going forward you could find the price of gold increases, in $ terms, but the £/$ exchange rate also increases in £ favour to make no increase in the value of the gold you hold in £. Of course the complete opposite could be true.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Karmo
    • By Karmo 6th Jul 17, 11:57 AM
    • 16 Posts
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    Karmo
    • #7
    • 6th Jul 17, 11:57 AM
    • #7
    • 6th Jul 17, 11:57 AM
    As you say he may not have been an expert . Antiques do have trend but real quality never goes out of style .
    • Morphoton
    • By Morphoton 6th Jul 17, 1:01 PM
    • 53 Posts
    • 51 Thanks
    Morphoton
    • #8
    • 6th Jul 17, 1:01 PM
    • #8
    • 6th Jul 17, 1:01 PM
    There are big arguments for and against gold as an investment and some people take strong views either way.
    If you are buying physical gold the best way to see if it is good value is to calculate how much you would lose if you buy the amount of gold you are interested in and then sell it back immediately. This would include all the costs plus the spread between the buying and selling price.
    You also need to consider how you will store it with regard to safety.
    There is a company called bullion by post which may be of interest.
    https://www.bullionbypost.co.uk/
    I have no experience of them and no idea if they are good value. I have no connection to them (They just have a good website for graphs of the gold price) !! So please do your own research.
    With regard to costs if you are looking at gold as purely an investment and do not mind NOT holding the physical metal you can invest in an Exchange Traded Fund (ETF) such as iShares Physical Gold SGLN. This has an annual cost of 0.25% and a very small difference between buying and selling. However if you are new to share dealing you would have to go through a stockbroker. Note that SGLN is priced in pounds as they are variants priced in € & $.
    For the record I hold 2.5% of my portfolio in SGLN.
    See:
    https://www.ishares.com/uk/individual/en/products/258441/ishares-physical-gold-etc-fund
    http://m.londonstockexchange.com/exchange/mobile/etps/summary/IE00B4ND3602ZZGBXETC2.html?lang=en
    • Zanderman
    • By Zanderman 6th Jul 17, 1:12 PM
    • 1,288 Posts
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    Zanderman
    • #9
    • 6th Jul 17, 1:12 PM
    • #9
    • 6th Jul 17, 1:12 PM
    As you say he may not have been an expert . Antiques do have trend but real quality never goes out of style .
    Originally posted by Karmo
    I don't think I said he wasn't an expert. The additional point I was making was that, even for experts, antiques have fashions. 'Real quality' isn't a measure of value or style - value and perception of style depends on whether that particular type of antique is trendy now, or not.
    • Malthusian
    • By Malthusian 6th Jul 17, 1:17 PM
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    Malthusian
    Antiques do have trend but real quality never goes out of style .
    Originally posted by Karmo
    There is a yawning chasm between "won't go out of style" and "will increase in value over the long term by more than a diversified stockmarket portfolio with dividends reinvested".
    • DigForVictory
    • By DigForVictory 6th Jul 17, 1:45 PM
    • 7,148 Posts
    • 19,464 Thanks
    DigForVictory
    I don't think a few of Krugerrands from Chard are a bad idea but then I wouldn't put money into gold exclusively.

    I'd want to have as diverse a portfolio as my funds permitted & if that meant selling gold to put myself through higher education, that might well pay more long term than anything "the markets" offer as I could be doing a job I love & getting paid for it.

    By all means buy a Krug or two, and a case of Krug or two & look after them - but don't be hung up on either as investments, just things to enjoy time future, whether you sell them, wear them, drink them - whatever.

    My take on antiques is that they may well be expensive, they may or may not hold their value, but so long as they're of use to me, then I'm getting some moneys worth out of them. If Himself were to eye the gold market, I'd be researching precious stones, too. Within reason the largest we could afford, as they can always be cut down...
    • atush
    • By atush 6th Jul 17, 4:22 PM
    • 16,333 Posts
    • 10,081 Thanks
    atush
    My take on antiques is that they may well be expensive, they may or may not hold their value, but so long as they're of use to me, then I'm getting some moneys worth out of them.
    This is my view on antiques. I like them, but I buy ones I can use (so dont have to buy the brand new equivalent). I have silverware i actually, use, a grandfather clock that tells the time, chests and other furniture that provide storage. And they wont have lost 50%+ the min I get them home from the store.
    • cashbackproblems
    • By cashbackproblems 6th Jul 17, 11:58 PM
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    cashbackproblems
    I buy kruggerands and uk soveriegns usually one coin a year, yes you can buy an etf but you have management and custody fees and gold is generally quite liquid and historically stable

    Next one on the list is canadian maple leaf
    • DiggerUK
    • By DiggerUK 7th Jul 17, 10:56 AM
    • 2,793 Posts
    • 2,681 Thanks
    DiggerUK
    How long is a..........
    As MSE's resident gold expert, I have to agree that you need to do some more research. Here's a good starting point.
    http://moneyweek.com/beginners-guide-investing-in-gold/

    On a more general level, you should view holding gold as a long term saving plan. Fantastic returns can be made in a very short space of time.......but only if good fortune is with you.

    I suspect you are a lot younger than me; there will be more immediate financial targets for you to hit e.g., clearing or obtaining a mortgage..._
    I am not now, nor have I ever been, a Financial Adviser.
    Forward, to the 'British Spring'
    • badger09
    • By badger09 7th Jul 17, 11:49 AM
    • 5,366 Posts
    • 4,593 Thanks
    badger09
    As MSE's resident gold expert ..............
    Originally posted by DiggerUK
    Self proclaimed and evangelistic
    • AndyT678
    • By AndyT678 7th Jul 17, 11:50 AM
    • 725 Posts
    • 985 Thanks
    AndyT678
    As MSE's resident gold expert, I have to agree that you need to do some more research. Here's a good starting point.
    http://moneyweek.com/beginners-guide-investing-in-gold/

    On a more general level, you should view holding gold as a long term saving plan. Fantastic returns can be made in a very short space of time.......but only if good fortune is with you.

    I suspect you are a lot younger than me; there will be more immediate financial targets for you to hit e.g., clearing or obtaining a mortgage..._
    Originally posted by DiggerUK
    This article was written by Mark O’Byrne, Head of Research at GoldCore.
    by Moneyweek
    Gosh - a man who works for a company that buys and sells gold thinks that you should buy gold.

    I wonder why he thinks that?

    I'm sure it must have been because he has your particular best interests at heart. There can't possibly be any other reason can there?
    • warehouse
    • By warehouse 7th Jul 17, 12:00 PM
    • 3,010 Posts
    • 5,637 Thanks
    warehouse
    I buy kruggerands and uk soveriegns usually one coin a year, yes you can buy an etf but you have management and custody fees and gold is generally quite liquid and historically stable

    Next one on the list is canadian maple leaf
    Originally posted by cashbackproblems
    Similar here. I buy a full sovereign every year, maybe another gold coin if funds permit, and 6 or 7 silver coins. Absolutely not for investment purposes but because I'm a bit of a coin freak.

    OP I use coininvest.com, based in Germany.
    Pants
    • ripplyuk
    • By ripplyuk 7th Jul 17, 12:47 PM
    • 1,655 Posts
    • 1,562 Thanks
    ripplyuk
    I really appreciate all the replies. My partner doesn't have a portfolio of any description. He is very likely to leave this money sitting in the bank (in his current account too). So I'm thinking it might be better to buy gold than leave the cash sitting doing nothing. Though I guess it's still risky that he could lose money.

    He wants this gold in his hand, not just a certificate of it. I've just been googling about forgeries which is worrying. Is there any way to know for sure if the stuff is real? Is it safest to buy it from the royal mint?
    • warehouse
    • By warehouse 7th Jul 17, 2:56 PM
    • 3,010 Posts
    • 5,637 Thanks
    warehouse
    You've already had the best 2 sites quoted above, bullionbypost and coininvest. Go check them out, then compare the same coins to the royal mint prices and you'll see.

    In fact I'll do it now...
    2017 Gold Sovereign (full) - (price for 1)
    Coininvest £237
    Bullionbypost £238
    Royal Mint £430 (oh look, it comes in a little box)

    Stick with the top 2 OP.
    Pants
    • cashbackproblems
    • By cashbackproblems 7th Jul 17, 3:21 PM
    • 1,705 Posts
    • 662 Thanks
    cashbackproblems
    I use bullion by post and have done for many years no forgeries and fees are very small.
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