investment in gold

buddy143

fablad75 wrote: »

There's a website that you can go to called Bullionvault.com - it works the same way as Betfair. You can buy or sell gold by having people match your offer. Nothing physical actually changes hands, but Bullionvault does have gold in its vaults..

In March I put about almost £2.5k into it. Price went down for a long time, but it picked up again last week so I sold, and made over a hundred pounds. Not bad for 8 months.

As far as I am aware, the gold prices continue to rise since last october. This is for sure. I didnt understand your point that since march, the price went down until last week !!

MacsReturns

My tupenn'orth: if you want to buy gold, then buy GOLD, not paper gold. Check out your local jewellers, with these high prices folks are 'cashing in' on old sovereigns and the like (look for a shop with a 'we buy scrap gold' sign outside). If you know the spot price on the day, you can probably pick these up at a reasonable premium. Any of the online sources are likely to charge you 30% premium or thereabouts, you should be able to haggle a jeweller down to 5-10% if you're good because that's about what they get if they just ship the stuff off to the bullion smelters. Pawnbrokers will rip you off worse than online bullion dealers.

BUT is it a good time to buy? Bubble or fundamentals? That's your judgment call. My judgment is that it is fundamentals - central banks from India to China are buying gold in quantities of 200 tonnes or so from the IMF, the Chinese government are encouraging their citizens to buy gold. At least for the next few months I think the floor will be above $1000/oz because both of those big buyers are buying the dips. Big pressure upwards still. Geopolitically, think about the state of the dollar, the effects of QE, 'green shoots' and the rest....

But hey, I'm just a metal-crazed doomer gold bug , so take it with a big pinch of salt. Though I wouldn't even spit on an ETF if it was on fire.

There's probably more to be said for silver in the current climate, though

fablad75

-shrugs- It definitely went down since the peak in March, and started climbing again round October, I think.

I'm not encouraging anyone to invest in gold, by the way. I was in it for the long haul - I was prepared to just stick it in there and forget about it for a few years - but selling it for a quick profit when the price was right was just too tempting

PS The exact figure was 5.26% over 8 months (after tax). I don't know what that would have been before tax p.a.

Aegis

fablad75 wrote: »

-shrugs- It definitely went down since the peak in March, and started climbing again round October, I think.

I'm not encouraging anyone to invest in gold, by the way. I was in it for the long haul - I was prepared to just stick it in there and forget about it for a few years - but selling it for a quick profit when the price was right was just too tempting

PS The exact figure was 5.26% over 8 months (after tax). I don't know what that would have been before tax p.a.

As far as I'm aware you'd only have been looking at Capital Gains Tax... and you certainly wouldn't have had to pay that on £100 gain if you haven't already made substantial (i.e. £10100) gains elsewhere.

If you've paid taxes on that amount you might want to look at a reclaim (though for the £20 or so that you'd have paid it might not be worth the hassle...)

fablad75

No, I don't mean I paid tax on the profit - I meant looking at the return on my investment, it came to 5.26% nett for a period of 8 months, and I was curious as to what that would have amounted to in bank interest terms.

sabretoothtigger

divide it by 8 and times it by 12


Gold has only outperformed shares since late august, before that the rally was good but since then absolute value in shares has dropped


Normally gold is a long term bet on currency being weak. You could only buy about an ounce of it in 24carrat form, maybe you should get the wife some jewellery.
Doing the opposite of those rip off ads cant be far wrong

Gymgenius

Personally, I wouldn't buy gold at the moment. I know nothing about it apart from that the price is high at the moment.

DiggerUK

buddy143,
You have a mortgage? you have debts? and you want to buy gold?
Get things in order, kill the debts.
For now, buy yourself a sovereign, follow it's fortune, and find out about gold.
In your case it is something for future consideration.

There is every chance of a pullback in price, but I think that gold under 600 pound an ounce is never coming back.
http://www.coininvestdirect.com/main.php
http://www.kitco.com/
http://www.lbma.org.uk/statistics_current.htm
http://www.gold.org/
http://goldprice.org/gold-price-uk.html

Best of fortune.

bendix

DiggerUK wrote: »

buddy143,
You have a mortgage? you have debts? and you want to buy gold?
Get things in order, kill the debts.
For now, buy yourself a sovereign, follow it's fortune, and find out about gold.
In your case it is something for future consideration.

There is every chance of a pullback in price, but I think that gold under 600 pound an ounce is never coming back.
http://www.coininvestdirect.com/main.php
http://www.kitco.com/
http://www.lbma.org.uk/statistics_current.htm
http://www.gold.org/
http://goldprice.org/gold-price-uk.html

Best of fortune.

Hang on. Aren't you the guy who says gold is a no-risk investment?

ses6jwg

A bit of common sense is needed here.

Gold has its place in any portfolio.

Come next year I will be looking at Gold ETFs as part of my ISA coupled with an index linked gilt to hedge against inflation.

Putting all your money into gold would be a very foolish thing to do.