Gold Investments

tigre64

Is it a good idea to invest in the gold bullion market?
(and i don't think you need to be a millionaire to do this)
and what are the pit falls (apart from prices falling) and anything else to be aware of ?

TIA

mr_fishbulb

Volatility - goes up and down very quickly.

Buying a commodity priced in dollars - changes in the exchange rate affect the price in pounds.

tigre64

What isn't volatile at the moment ?
i believe you can buy in sterling

dunstonh

i believe you can buy in stirling

and other places in England as well

mr_fishbulb

tigre64 wrote: »

i believe you can buy in sterling

Yes but the actual commodity is priced in dollars.

If you buy 1 once at $850 when there are $2 to the £ then the once is worth £425

Say gold goes to $1000 but the dollar drops to $3 to the £ then your once is worth £333.33

wombat42_2

mr_fishbulb wrote: »

Yes but the actual commodity is priced in dollars.

If you buy 1 once at $850 when there are $2 to the £ then the once is worth £425

Say gold goes to $1000 but the dollar drops to $3 to the £ then your once is worth £333.33

But on the other hand commodities prices in dollars usually thrive when the dollar is falling. Why is it that commodities when converted from dollars to Sterling usually do well as well with a falling dollar.