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Buying in to Gold

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  • tradetime
    tradetime Posts: 3,200 Forumite
    DiggerUK wrote: »
    Tradetime,
    I prefer your explanation. It's readable.

    Now where's my tea leaves gone!!!
    LOL, DiggerUK, I suspect you don't have a lot of use for it, so to put it in a nice small summary, if you hear the talking heads on the financial channels talking about the VIX being high or spiking higher, it means market volatility is rising, market players are becoming more nervous or fearful, and if they are saying it is low or moving lower then it suggests complacency is creeping into the market.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    TT
    Wine and gold under 600 has got me and Mrs D well vixed.
  • sabretoothtigger
    sabretoothtigger Posts: 10,036 Forumite
    Part of the Furniture 10,000 Posts Photogenic Combo Breaker
    edited 18 May 2009 at 10:17PM
    Just gone under 600 an ounce.
    Hold out or buy.
    We are into our second bottle of wine.

    HELP
    What % gold do you hold, if its more then 5% of your investments I would vote no to buying.
    Ive no idea if it'll go higher, I would guess yes but doesnt mean there isnt better places to invest money and gold isnt a 'proper investment' (imo) unless you like mines

    gold and oil should probably go together as I think the cost of gold mining rises as energy costs do and also oil stocks give a nice yield to oppose golds no yield

    Wine field investments tanked in australia I heard but at least you can drink it :) though I heard they threw away stocks as demand fell :confused:


    low or moving lower then it suggests complacency is creeping into the market.
    Vix is lower now then in Jan when markets were at a similar level and fell back badly as it was a weak volume rally.

    We are back to Sept 08 in terms of 'stability' or long term, Sept 01

    2006 was a ten year low in perception of risk apparently, its all about personal opinion :/
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    STT,
    We are (rounded off) 6 gold, 3 Index linked, 1 ISA.

    We are more than likely going to scrap the older car before we buy gold. Trouble is it still runs well. Long term it seems the better option. I think it's any day soon that the scrap scheme starts.
    (Mrs.D just said it's today.)
    Signing off today before I do something silly with CID site. See you again.
  • tradetime
    tradetime Posts: 3,200 Forumite
    2006 was a ten year low in perception of risk apparently, its all about personal opinion :/
    Yeah the VIX got to 9.39, previous low for this incarnation of the VIX was 9.31 in'93
    snapshot-4.png
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • sabretoothtigger
    sabretoothtigger Posts: 10,036 Forumite
    Part of the Furniture 10,000 Posts Photogenic Combo Breaker
    DiggerUK wrote: »
    We are more than likely going to scrap the older car before we buy gold..


    A fixed interest low rate loan for the car could be a play on inflation in a similar way to gold apparently
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 10 June 2009 at 12:45PM
    Bluey890,
    Here is info on prices. The Kitco site is a mine of intel. Forum has a good spread of headbangers as well as good advice.
    http://www.kitco.com/

    These sites give prices.
    http://www.coininvestdirect.com/main.php
    http://www.goldinvestments.co.uk/shop/
    http://www.goldline.co.uk/
    http://hattongardenmetals.com/
  • MissDeeMeanour
    MissDeeMeanour Posts: 8 Forumite
    edited 10 June 2009 at 4:24PM
    So whats best? Coins or bullion bars? I understand that there is no CGT on UK coins but what about bullion?

    I intend to purchase small amounts sporadically (£500 ish at a time, perhaps 2/3 times a year) and just leave them in the safe for the long term then to resell in 10yrs or so. So a pretty collectors type coin is not important to me. If I were to look at coins, whats the difference between a UK sovereign that is only 917/1000 and another country at 999/1000 (ignoring CGT) - I assume sovereigns have a better resale in the UK than other coins despite the slight drop in gold content or am I barking up the wrong tree.

    There is so much info out there, its taking a while to sift through it all - so anything direct and to the point would be great! (As long as that point in NOT you're mad!!)
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    MDM,
    If your investing in gold, then it is the gold content you are interested in.
    The amounts you are talking about, then coins seem appropriate.
    Precious metals are in troy ounces, (31.1 gms)
    If you go to the CID link you will see that they give gold content in grammes, you can then do a calculation to compare to spot, or fix prices.
    The Kitco site has real time spot fluctuations. This link has London fix and will explain more.
    http://www.lbma.org.uk/statistics_current.htm
    If you click on gold fixings at top left you can see it does seem to be an opportune time to buy in UK, buyers are hoping for it to go down further. Who knows.

    Don't forget to track in GBP, after all that's the money in our pocket. Currency moves such as pound strengthening against $ means price of gold (pog) goes in our favour. Today being a case in point.

    All gold in Europe is VAT free.
    All UK legal tender coins are CGT free. Brits and sovs fall in this category, as do the numismatist issues of everyday coins. If you go to the Royal Mint site you will see the boutique mark up they charge. Best avoided for what you want, but if you see one at a bargain price, grab it.
    Brits and sovs are internationally recognised and easily sold.

    Hope this helps.
  • sabretoothtigger
    sabretoothtigger Posts: 10,036 Forumite
    Part of the Furniture 10,000 Posts Photogenic Combo Breaker
    edited 10 June 2009 at 5:49PM
    Gold isnt the only commodity you could buy. If you will hold for ten years you might want to get a couple more practical ones to balance yourself

    I think gold relys on the weakness of other currencies, it doesnt have much strength or demand for itself apart from jewellery.

    I dont think global gdp will be depressed for ten years. So if some country(s) begin to do very well in the next ten years then it will be more attractive to hold their currency and get some interest on it then keep holding gold and getting nothing but security fees

    The cost of mining gold is apparently about $270 per ounce so we have a big gap that might occur. The price will probably rise with dollar weakness or inflation wherever but for actual growth I dont think it will be worth having for ten years like you wouldnt open a short position for ten years on even a terrible company, it wont take that long for the position to peak in its worth




    eil5kx.gif
    21j2gpe.gif
    Old discussion of gdp vs present
    http://www.treasury.gov.au/documents/1190/HTML/docshell.asp?URL=05_boom.asp
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