How can I use my ISA to invest in Silver, Gold, Oil etc

pKaTz

I have a Fixed rate ISA maturing this Month [Northern Rock].
I know it is possible to invest this in Stocks and shares, but what is the best way to invest it in PMs, like silver and gold. I am also considering oil, mining and wheat but not too sure here.

Are there funds that any of you can recommend, or just individual stock. This is obviously for the long term, and I don't really want to chop and change it every year - as I have been with cash ISA's to hunt down the best rates.

Looking at http://www.moneysupermarket.com/savi...d-shares-isas/
they come up with
TD Waterhouse Self Select ISA
Funds Network Fund Supermarket
Hargreaves Lansdown Stocks & Shares ISA
Skipton Financial Services Fund Supermarket
Legal & General Stocks and Shares ISA
Fidelity Stocks & Shares ISA
There are others too but that would make this post too long.

What should I look out for when going down this route. I know that the ISA is just a wrapper, and it is still investing in stock [may go up or down], but holding these stocks in an ISA would definately be a good idea, esp as inflation is up again, meaning that basics such as oil and wheat are up too.

Who do you use and recommend, for low rates/costs/commissions/results.

Anything you wish to add, or advise me of please do.
Im a basic rate tax payer, The amount of the ISA is around £5k, this years allowance is already invested in a fixed 3%, but may move/transfer that also.

Masomnia

Any fund supermarket that offers ETFs should allow you to get exposure to PMs. So just find whatever's cheapest for trading costs, I think iii is often mentioned for being good value for money. You could also look at mining stocks.

pKaTz

there are a lot of different companies out there. is there any one I should choose over the other.

Masomnia

I'd look at Hargreaves Lansdowne, low charges and offer ETFs.

pKaTz

pKaTz wrote: »

there are a lot of different companies out there. is there any one I should choose over the other.

I mean which stock should I choose, for mining, or silver oil etc.

utigers

IMO I would be very careful at the sectors you are looking at. They are fasionable now and people are looking at how well they HAVE done, their may be a bit further to run yet then it may decline.

pKaTz

What do you think of the Junior Gold Fund?
http://www.h-l.co.uk/funds/fund-news--and--investment-ideas/fund-news--and--alerts/junior-gold-fund-update

Kohoutek

pKaTz wrote: »

I mean which stock should I choose, for mining, or silver oil etc.

If you're confident about rising silver prices, you could buy Silver Wheaton (TSE:SLW; NYSE:SLW). It's a company that buys "streams" of silver production from mining companies. They do not hedge their silver positions, so the stock basically gives you leveraged exposure to silver prices.

Be very careful though, because if silver crashes, this company's stock will crash very hard.

jamesd

pKaTz wrote: »

I mean which stock should I choose, for mining, or silver oil etc.

You shouldn't. Try looking at funds like JPM Natural Resources instead. As of 31 October that was split:

36.20% Gold & Precious Metals
33.30% Base Metal And Diversified
24.70% Energy
3.10% Diamonds And Others
1.50% Soft Commodities
1.20% Money Market

That gets you a proven capable pro to look after things for you.

Blue: ETFS Physical silver
Red: JPM Natural Resources
Yellow: Blackrock Gold and General
Green: Aberdeen Emerging Markets
Pale blue: FTSE All Share Index
All over 18 months, Pounds, total return.

jamesd

pKaTz wrote: »

I don't really want to chop and change it every year

That's a big danger signal and suggests that you should not be considering a high natural resources concentration.

The difficulty is that the best area to be invested in varies with economic cycles that tend to be five to ten years long. We're in the late middle or so of the part of initial economic recovery where natural resources funds do well. Next stop would be something like M&G Global basics for basic manufacturing. Hold a natural resources fund when going into a depression and you'll see large capital value losses - look a that huge dip in the JPM Natural Resources fund chart.

If you really don't want to be looking at it even once a year, pick a fund like Aberdeen Emerging Markets if you're content to look at a twenty year timeframe. That'll still drop 70% during a bad time but it won't have quite such a high risk combination as pure natural resources.

If you don't like a 70% drop in a bad year, pick something safer, like a global tracker fund, say the HSBC World institutional fund bought via Hargreaves Lansdown. It'll go up and down less, less long term growth but "only" a 50% drop in a bad year.

If you don't want a 50% drop then you should consider adding some commercial property and perhaps bond funds to reduce the variation.

pqrdef

pKaTz wrote: »

but what is the best way to invest it in PMs, like silver and gold. I am also considering oil, mining and wheat but not too sure here.

I'm not convinced that PMs are really an asset class. The case for metals like silver, platinum and palladium is based at least partly on industrial usefulness, but gold is a different animal. It should probably be regarded as a currency rather than a commodity.