The five worst ways to buy gold

halight

http://timesbusiness.typepad.com/money_weblog/2009/06/the-five-worst-ways-to-buy-gold.html



Hope this is of intrest to some of you

novazombie

Everyone seems to agree on the first 4, but he seems to be on his own with number 5.

5. Unallocated gold storage accounts

When a bank sells you gold but holds it in safe-keeping, the account is often unallocated. This means you do not actually own any gold. Instead the bank owes you a certain amount of the metal. This makes you a creditor of the bank.
More from Money Central5. Unallocated gold storage accounts


Why on Earth does he say this? Moneyweek and many other website disagree with him.


This is the best way because its the safest, no worry like holding physical.

sabretoothtigger

Go with the perth mint for unallocated not a bank. Because they are government backed out there, their currency has and continues to get stronger it seems along with the economy comparability (apparently) and also they actually mine the gold out there and have one of the biggest gold operations in the world afaik.

I wouldnt trust some random bank to be able to pay up if circumstances arise that cause a quadrupling in gold price like 1980 so times is correct.


http://en.wikipedia.org/wiki/Derivative_(finance)#Counter-party_risk

novazombie

Thanks sabertooth, have you got any in with the perth mint?

I just wonder if their will be ay tax to pay when selling if the price goes up 300%?

sabretoothtigger

What makes you think I'm that rich though they do small amounts too I think. It doesnt really matter what I hold, weigh it up for yourself but I'd not want more then 5% in gold really at these prices.

Theres other commodities, silver has been better recently and also look at the crb index (which is 7% precious metals)


The best tax free way is british currency that is gold like a sovereign but they sell at a premium to the true gold price, £150 for roughly a quarter of an ounce weight

Theres no cgt, vat or income tax on any gain there but with the perth mint I think you would be liable to cgt beyond your yearly allowance of like 9k

http://en.wikipedia.org/wiki/Sovereign_(British_coin)

SilverStandard

Very good QandA here about it. (1, 2, 3, 4)


http://groups.yahoo.com/group/gata/message/1535

you have more control over gold in your personal
possession, but holding your gold is not without its own
risks. In my view, owning allocated gold acquired within an
established chain of integrity (like the one established by
the London Bullion Market Association) and having that
gold insured is the safest way to hold gold, and this is the
standard we have achieved at GoldMoney.

amcluesent

You'll need quick access to the real gold when the balloon goes up. I mean to barter for tamiflu/petrol/passage to America etc. Buy using cash, then have a secure hoard.

crazygaijin

Why would you want to go to America? The US is going down the toilet, everyone knows it.

The UK is always a little behind at lease a couple of years.


Comparing goldmoney to Perth Mint Cert program, I would go with the PMCP every time. The goldmoney account isnt backed buy a government etc etc. But the main reason the PM is better, you dont have to pay storage costs but you do have to with goldmoney. I dont like the thought of my investment going down every year if the price of silver stays the same.

janemoore

I prefer holding physical gold bars and taking resonsibility for keeping them safe myself. I have bought small bars from a few bullion dealers and have found Bullion By Post to be the best price and a very fast efficient service.

DiggerUK

janemoore wrote: »

I prefer holding physical gold bars and taking resonsibility for keeping them safe myself. I have bought small bars from a few bullion dealers and have found Bullion By Post to be the best price and a very fast efficient service.

First your flogging spectacles, now your spamming a site that doesn't do the best prices. You have never bought a lump of gold in your life, have you.
Sierra Oscar.

RDB

The charges for us Brits to invest in Perth Mint are over 100% more than the Ozzies.

http://www.pmcg.com.au/invest.php?Investment-Fees-3

They only have to pay 1% and like $10 for the certificate.

I invested 25K GBP and had to pay 3.6% fees and $50 for the certificate.