Buying gold as an investment

mr_fishbulb

36 year chart of gold priced in £ (furthest back I could find):



Doesn't really look that good to me. Unless you managed to time the market correctly and get in each time just before one of the massive blips, your investment will either be falling gradually or doing nothing for years.

I got into gold and silver before I'd read up that much on proper portfolios. Managed to make a profit only because of the currency fluctuation of the GB£/US$. If I knew then what I knew now, I wouldn't have bothered.

Reaper

What ever happened to Wombat? There was a time you couldn't mention the word "gold" without him popping up as if by magic.

And I miss all those links he used to provided to dubious American gurus saying world finances were doomed and nothing could save it, getting into gold was the only hope.

It's just not the same any more.

mr_fishbulb

Reaper wrote: »

What ever happened to Wombat? There was a time you couldn't mention the word "gold" without him popping up as if by magic.

And I miss all those links he used to provided to dubious American gurus saying world finances were doomed and nothing could save it, getting into gold was the only hope.

I used to read those Lots of gold and energy ramping from these guys - http://www.financialsense.com I used to listen to their podcast every week.

Wombat was one of the ones who got me looking at natural resources funds though - much better idea than putting all your bets on one commodity.

cloud_dog

Far be it for me to be considered a gold bug (heavens no) but........... I think people may be getting confused / obsessed over what gold can do for you and your wealth.

Gold should not be seen as a possible stratospheric investment, I'm not sure anyone has ever said that it is / will be the best place to be. What gold (and other PM's / commodities) can do is to protect your wealth over time.

Obviously it will fluctuate with modern day views on gold and consumer / investor demand (or not) but, to compare the price of gold over the last 10, 20, 30 years is missing the point of what gold does appear to offer, a way of holding value, and for that value to retain a correlation with the necessities to live (wheat etc, possibly oil more recently) but, it's never exactly like-for-like that would be too perfect.

purch

Gold should not be seen as a possible stratospheric investment, I'm not sure anyone has ever said that it is / will be the best place to be. What gold (and other PM's / commodities) can do is to protect your wealth over time

I agree, Gold should be considered an Investment in a Hedge, rather than an Investment to make a Profit.

I am sure Digger fully understands what he means when he states that it's the "best there is" in terms of an Investment, but I am sure others could misinterpret that as meaning it's the best Investment to make a quick profit, which I know he doesn't mean, and which would be poor advice.

billyjojimbob

Cheers DiggerUK.

Already done the clear debts and mortgage thing, I was looking for long term ideas.


:-)


PS

Been here on the LBMA site too.................... or is this the wrong site?

lol


http://www.londonmessengers.org/news

DiggerUK

billyjojimbob,
As a filling for "Road Kill Pie" they are cheap and cheerful, beyond that no use to man nor beast. They don't stack either.

As prices are still over 600, start using up some shoe leather and find out your local gold dealers. You will always find some bargains to be had. Net search will give you local dealers. What area of country are you in. We are SE.

Everybody and their dog is wanting to "buy your old gold", check out what they want for the coins out of the scrap. You can get keen prices at times because they are doing OK with the scrap.
Remember that UK legal tender coins are VAT and CGT free.

geo555

I've no experience of gold as an investment, but at the moment prices are high. You do not get any income from your investment and the only gain is if the price increases.
You are just speculating that gold will increase in value, but remember it can also drop in value too.

Stavros_3

I'm thinking of buying a 1oz Gold Britannia for my first grandson whose about to arrive, whats the cheapest way of doing it. I've looked at both Chards and Bairds and there's not that much difference. Do I pay more above their quoted price on their website?

DiggerUK

Stavros wrote: »

I'm thinking of buying a 1oz Gold Britannia for my first grandson whose about to arrive.

Use this site as a price gauge. Have used myself. Deliver in 3/4 working days. p&p is about +13.50.

http://www.coininvestdirect.com/main.php

Check out local coin dealers, they could better this.