Keep My Isa Or Buy Gold?

jasonkurtsdad

I have an isa with bradford and bingly, but i dont think they are in great shape. i have about £2000 in it, with the price of gold higher than it was even a couple of years ago, would i be better off with closing the isa and buying some gold now before it goes even higher? the returns would be higher in the long run, wouldnt they?



i would be keeping the gold till retirement age which is 30 years away yet. What type gold should i get? sovereigns, krugerrands, canadian maples? or other. I dont want to buy gold and have certificates sent to me saying i have x amount. i`d rather have it where i can see it

Masomnia

jasonkurtsdad wrote: »

I have an isa with bradford and bingly, but i dont think they are in great shape. i have about £2000 in it, with the price of gold higher than it was even a couple of years ago, would i be better off with closing the isa and buying some gold now before it goes even higher? the returns would be higher in the long run, wouldnt they?

What makes you say it will?

Your return with the ISA is guarenteed, it's not with gold. Whether you take that risk only you can decide really. If you can't afford to lose the money then certainly don't do it.

Bradford and Bingley are fine by the way, they're owned by one of the largest banks in the world, Santander, considered one of the safer ones.

jasonkurtsdad

i`ve been looking at investment sites and they reckon the price will go through the roof.

jasonkurtsdad

this is just one of the pages i`ve found.....
http://www.marketoracle.co.uk/Article3635.html

trenchwars

Masomnia wrote: »

What makes you say it will?

Your return with the ISA is guarenteed, it's not with gold. Whether you take that risk only you can decide really. If you can't afford to lose the money then certainly don't do it.

Bradford and Bingley are fine by the way, they're owned by one of the largest banks in the world, Santander, considered one of the safer ones.

But you're also taking a risk keeping all your savings in cash - just ask the people in Iceland after the Kroner collapsed.

Masomnia

trenchwars wrote: »

But you're also taking a risk keeping all your savings in cash - just ask the people in Iceland after the Kroner collapsed.

That's a different matter to be fair. I don't think there's any reason to believe that UK deposits aren't safe, given the compensation schemes, bailouts etc.

rl290

Having a balanced investment portfolio is quite important. You also need to consider your risk adversity. If you put your money into gold and it decreases in price, what then? While plenty of people say gold is sure to increase (and I believe them) remember that they could be completely incorrect - people were saying house prices would continue to increase in summer 2007.. then they began a c.20% drop!

Be sure to consider other options, such as moving to another S&S ISA fund, or sticking with cash.

tradetime

As I recall Goldman Sachs was calling Crude to $200 when it crossed $100.

Masomnia

jasonkurtsdad wrote: »

i would be keeping the gold till retirement age which is 30 years away yet. What type gold should i get? sovereigns, krugerrands, canadian maples? or other. I dont want to buy gold and have certificates sent to me saying i have x amount. i`d rather have it where i can see it

Gold isn't much higher now that it was 20 years ago. Inflation adjusted and you're still at a loss if you bought at the highs, I think I'm right in saying. It probably is worth having it as part of a portfolio, but beware of putting all your eggs in one basket.

trenchwars

Masomnia wrote: »

That's a different matter to be fair. I don't think there's any reason to believe that UK deposits aren't safe, given the compensation schemes, bailouts etc.

UK deposits may be safe, but I'm more worried about what my money will be worth in 1-2 years time.

wombat42_2

Masomnia wrote: »

Gold isn't much higher now that it was 20 years ago. Inflation adjusted and you're still at a loss if you bought at the highs, I think I'm right in saying. It probably is worth having it as part of a portfolio, but beware of putting all your eggs in one basket.

Thats only true if you bought right at the top of a steep peak 20 years ago.