The five worst ways to buy gold

crazygaijin

RDB wrote: »

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.

Its still the best long term way to invest in silver, because there are no ongoing costs.

If you want short term then go for goldmony or an ETF, but then you have to pay every year.

The silver price is manipulated and kept very low, when this will end who knows. It could be many years.

I have a long term position in silver with the Perth Mint silver certificates also, its the best way in my opinion.

Say if I bought physical silver for the same amount, when the price does go back up to where it should be how do I sell? Its not easy, who has the money to buy back at 10 times what it has been the last few decades?

With the PM you can fix a price on the same day and liquidate in a few weeks.

sabretoothtigger

Holding a commodity long term seems like it would require alot of foresight to future demand


This guy says base cost to gold is $400 an ounce. Seems mighty expensive to me but its not the first time Ive thought gold (mining) investment requires an interest in energy also

http://www.youtube.com/watch?v=NWn__HowyaA


some trader Analysis on gld
http://!!!!!!/o70yS


For any magpies, some good news links on this page I think.

http://finance.yahoo.com/q/h?s=AU

AU wrote:

Production of 1.1 million ounces at a respectable cost of $445 per ounce marked a 13% sequential decline

SilverStandard

crazygaijin wrote: »

Its still the best long term way to invest in silver, because there are no ongoing costs.

If you want short term then go for goldmony or an ETF, but then you have to pay every year.

The silver price is manipulated and kept very low, when this will end who knows. It could be many years.

I have a long term position in silver with the Perth Mint silver certificates also, its the best way in my opinion.

Say if I bought physical silver for the same amount, when the price does go back up to where it should be how do I sell? Its not easy, who has the money to buy back at 10 times what it has been the last few decades?

With the PM you can fix a price on the same day and liquidate in a few weeks.

I say fly to Aus and get it out of there fast.

It's really boils down to a matter of trust, Do you trust your government? Do you trust the Australian government? I certainly don't trust them. And the aus government OWNS the perth mint. Or at least the West Australian government does I think. Do you trust all the people here? To advise you on such an important matter?

Here is my advice! Why don't you take a holiday to aus, collect your bullion, take a hire car across the nullabor plain [ really a once in a lifetime must do thing] and then catch a ferry down to Tasmania. Tasmania is a little island state south of aus, there you can buy a house on land for as little as $15 000 au. Dig a deep hole somewhere under the house and bury your silver there, throw in some concrete lumps and scatter rubble over the area when you have filled it in. Then rent out the house through a local agent, on a long lease, for a low price, to an elderly couple and then !!!! off back home and relax!

sabretoothtigger

Discussion of buying GLD (by an american)

http://www.alphatrends.net/2009/06/is-gold-gld-a-buy-here/

I havent been able to watch this yet but the guy is top notch normally

crazygaijin

Its interesting that Peter Shief recomends perth mint certificates over owning physical

http://www.europac.net/investment_perth_best.asp

but then his company sells tham.

Jonbvn

SilverStandard wrote: »

Dig a deep hole somewhere under the house and bury your silver there, throw in some concrete lumps and scatter rubble over the area when you have filled it in.

You could even dig your bunker at the same time. Now that's really MSE!

DiggerUK

Just as a gold site, selling physical gold will give you all the reasons to hold physical wouldn't surprise you, why all the hoo har from a press release from Bullion Vault's Mr. Ash?

Interestingly he doesn't include physical gold as one of the worst ways to hold gold.

Reality is you will never be able to take possession of BV physical, which is why it's not my choice.
I'm in the "if you can't hold it you don't own it" camp.

If paper gold is what you want, then buy paper.

RDB

DiggerUK wrote: »

Just as a gold site, selling physical gold will give you all the reasons to hold physical wouldn't surprise you, why all the hoo har from a press release from Bullion Vault's Mr. Ash?

Interestingly he doesn't include physical gold as one of the worst ways to hold gold.

Reality is you will never be able to take possession of BV physical, which is why it's not my choice.
I'm in the "if you can't hold it you don't own it" camp.

If paper gold is what you want, then buy paper.

Thats all very well for Gold, but what about silver? You have to pay vat here in the UK.

Also you have delivery charges and storage to add on top its more bulky for the same weight as gold.

Where can you store 1 tonne of physical silver where you can sleep soundly at night? I know where the Perth Mint and then you dont have to worry about digging it up and delivering somewhere to sell when the price shoots up, its already there!


I agree having your precios metals anywhere else apart from a government guaranteed establishment (not goldmoney for instance) is risky. But the Perth Mint is the only government backed mint in the world.

It is important to note that The Perth Mint buys precious metal when you buy from it and sells when you sell to it on a 1:1 basis - all holdings, whether they be allocated or unallocated, are therefore 100% backed.


Also consider how you are going to sell your precious metals? I can liquidate in about a week with my PM Silver certificates.

Last time there was a precious metal mania in 1980 people where running around in a panic trying to find someone with enough cash to buy there metals, but the place they bought it from will only offer half spot price.

DiggerUK

RDB wrote: »

Thats all very well for Gold, but what about silver? You have to pay vat here in the UK.

Also you have delivery charges and storage to add on top its more bulky for the same weight as gold.

QUOTE]

As we went down the road of holding physical, it was the bulk involved in silver that turned us to gold. The VAT was also a big turn off.

Au or Ag being the better investment is a judgement call.

RDB

DiggerUK wrote: »

RDB wrote: »

Thats all very well for Gold, but what about silver? You have to pay vat here in the UK.

Also you have delivery charges and storage to add on top its more bulky for the same weight as gold.

QUOTE]

As we went down the road of holding physical, it was the bulk involved in silver that turned us to gold. The VAT was also a big turn off.

Au or Ag being the better investment is a judgement call.

But dont you think silver has much better growth potential.

Looking at the last high point for precious metals in 1980 gold was $900 and silver was $50 troy oz. Soon after prices fell to $250 gold and $5 silver.

Gold is now back up to the previos high but silver is not yet. Its still less than $15 but will be up to where gold is or more soon.