Buying gold as an investment

billyjojimbob

Does anyone have any experience of doing this?

I don't mean jewellery, I mean small bars or coins.


Cheers

DiggerUK

billyjojimbob,
Me and Mrs.D have the bulk of our savings in gold. So as you can see we are huge fans of the metal.
There are a number of threads on gold, have a read through them.

This is a site selling gold, so as you would expect it is only going to talk it up, not down. Give you a good idea of prices.
http://www.coininvestdirect.com/main.php

http://www.invest.gold.org/sites/en/where_to_invest/directory/?country=UNITED+KINGDOM&cb%5B%5D=coins&submit=Search&agree=1&task=search

You will never hold a piece of worthless gold in your hands.

Io07

DiggerUK wrote: »

billyjojimbob,
Me and Mrs.D have the bulk of our savings in gold. So as you can see we are huge fans of the metal.
There are a number of threads on gold, have a read through them.

This is a site selling gold, so as you would expect it is only going to talk it up, not down. Give you a good idea of prices.
http://www.coininvestdirect.com/main.php

http://www.invest.gold.org/sites/en/where_to_invest/directory/?country=UNITED+KINGDOM&cb%5B%5D=coins&submit=Search&agree=1&task=search

You will never hold a piece of worthless gold in your hands.

Dear DiggerUK

I have been searching the forums for helpful hints on buying gold and have repeatedly come across your good advice.

Do you have any experience of buying gold in Dubai?? Some of the websites hint that it might cost less buying it there and I may be able to have a brief holiday there in the coming weeks.

Our position is that we have enough for a medium bar to put towards it which we do not need for the forseeable future i.e. no need to liquidate it. have looked at the UK sellers eg chards but would much rather "cash and carry".

any thoughts?

Lokolo

DiggerUK wrote: »

You will never hold a piece of worthless gold in your hands.

Lies I tell you

http://en.wikipedia.org/wiki/Pyrite

DiggerUK

Io07 wrote: »

Do you have any experience of buying gold in Dubai??

Me and Mrs.D are always jetting off here and there, but never been to Dubai.
Apart from bars and coins the other area for gold is investment jewelry. It is traditionally 22ct, (the same as Sovs and Brits), and is sold by weight. Middle East is famous for it.
Madrid has a thriving 18ct jewelry market, lot of gold shops selling by weight.
Other area for investment jewelry in UK are the Indian jewelers, deal in 14,18 and 22ct.
Go to gold forum on this site and post for info on Dubai gold. Comes up quite regular in discussion. Keep site in your favourites.
http://www.kitco.com/

Io07

thank you diggeruk, I am waiting to be allowed to post on kitcom; did try searching but have given up now!
I've read that about 22ct jewelry too...something to consider. Just don't want to buy in dubai and discover i've been cheated later:o

DiggerUK

Io07,
Dubai gold/market/jewelery.
Search engine. About 3.5million pages.
Makes me want to go. Post with a feed back after you have been.

purch

Gold has proven to be one of the worst investments possible over the last 30 years.

According to www.shadowstats.com the provider of the only set of statistics worth using (according to Gold Bugs, conspiracy theorists and the like..............so what they say MUST be true :rolleyes:)

“If the methodologies of measuring inflation in 1980 had been kept intact, Gold would have to hit $7,150 to be the equivalent of the 1980 high of $ 873" ...........the words of John Williams the editor and economist who runs the Shadowstats site.

Why has Gold been such a poor Investment over the last 30 years, and why would anyone of a sane mind think that Gold will suddenly get back the huge amount it needs to just to break even ???

DiggerUK

purch wrote: »

“If the methodologies of measuring inflation in 1980 had been kept intact, Gold would have to hit $7,150 to be the equivalent of the 1980 high of $ 873"

$pog got to $850 for one day on 21/01/1980, not $873
Inflation linked that comes to $2230 at todays prices, not $7,150
http://www.usinflationcalculator.com/

http://www.lbma.org.uk/?area=stats&page=gold/1980dailygold

Interestingly, if you had bought 1oz of gold every year on the anniversary of the 1980 spike, starting on 21/01/1980, you would have paid an average of 259.37GBP.
It's 645GBP an ounce today.
http://www.lbma.org.uk/stats/goldfixg

purch

It's not my calculation.

Those are the words of Shadowstats

http://www.bloomberg.com/apps/news?pid=20601087&sid=a3w9OGzFRe3Y

Inflation linked that comes to $2230 at todays prices

So why hasn't Gold kept pace with Inflation ??

Is it because it is a Bad Investment Vehicle ??

Interestingly, if you had bought 1oz of gold every year on the anniversary of the 1980 spike, starting on 21/01/1980, you would have paid an average of 259.37GBP.

Whats that meant to prove :rolleyes: ?

Interestingly if you had bought Gold on 13th October, you'd be facing a loss today

bendix

Digger is, as always, being disingenuous with the stats as always. Yes, gold only spiked briefly at $850 in 1980, but it stayed around $600-$700 for the rest of the year so it can hardly be seen as a blip. That equates to a price of around $1500-$1800 today, nearly thirty years later.

Then, between 1983 and 2003 it barely moved beyond the $350-$450 range, in effect falling in value against inflation. It moved sideways in nominal terms - and downwards in real terms - for a twenty year period.

It is only in the 5 year period since then that gold has recovered and started to recover in value.

I suspect Digger's enthusiasm for gold is linked to the fact he has only held gold in the last 5-6 years.

Caveat - I hold gold (both physical and in gold company shares) and believe the short-term outlook is generally positive for all commodities, including gold.