GOLD- advise for 1st time investor

inkslinger

As thread title states, im looking to invest a little of my savings into gold. Im not talking fortunes, maybe a couple of thousand at the very most. I already have ISA, some stocks and shares (very little tbh but watching and learning) and savings accounts.

Advice I'm looking for is how do I do it? Who's reputable to buy from etc? I have my own business and a very secure safe. Do I buy the gold and physically keep it myself? Buy it and have someone else take care of it at a charge?

Iv done a little research on the web but it seems a lot of the sites Iv looked at don't look too reputable and I certainly don't want to get my fingers burnt. Would appreciate some honest advice on this and what to buy. Coins or bars too?

Thanks in advance to those who's knowledge is greater.

Mr Ink.

downs523

There is a gold bullion discussion in thismformum try the search, I know bullionuk.com sell gold and I have used them before, very reliable also buy physical bullion!

B_Blank

Like all investments you want to make sure you havent "missed the boat" with gold. Remember the markets could of already factored in high inflation to todays gold prices, but then again they might not of factored it in enough yet.

I am no expert and dont have an opinion either way. I am just saying think your investment through properly

B_Blank

Maybe you could buy into a fund for whom gold/gold miners make up a significant part of their holdings. If you want exposure to gold price

inkslinger

I'm thinking pretty long term investment rather than short term. Maybe holding until retirement in 30 years time. Im aware it can go down as well as up, and although like anyone Id hate to loose, i prepared to take a knock on it. As I said, not fortunes, but a small investment and watch the markets over the next few years. With interest rates being what they are I think a small gamble could be prudent.

Thank you for the advise, any opinion is appreciated and healthy debate is always good!

Kohoutek

It's a complex area, there are many options.

In terms of physical gold, you can either buy gold bullion from a dealer and hold it in your possession or buy from a specialist company that will vault and insure the gold for you. Examples of the latter are goldmoney.com and bullionvault.com. Goldmoney will allow you to buy/sell gold at the London spot price; at Bullionvault you buy/sell from other members of Bullionvault. They charge storage fees of about 0.5%-2%/year, depending on how much you hold with them. Although the gold legally belongs to you, not the company, it is often "unallocated" which means no specific gold bar is allocated to you.

In terms of gold backed securities, you can buy ETFs and collective investment schemes (i.e. a "fund") that are backed by gold bullion. However, you do not own any gold directly, you simply own units or shares in an investment vehicle, so there is counterparty risk.

In terms of shares of gold mining companies, you could research individual shares or buy into an ETF or funds that invests in gold mining companies. Barrick Gold is the largest gold mining company in the world; BlackRock Gold and General is an example of the latter.

DiggerUK

inkslinger wrote: »

... seems a lot of the sites Iv looked at don't look too reputable and I certainly don't want to get my fingers burnt. Would appreciate some honest advice on this and what to buy. Coins or bars too?...

Kohoutek has covered most options. UK legal tender is VAT free going in and CGT free coming out. Bars and foreign coins will attract CGT.
These are best prices and sites for Sovereigns, Bars, and Krugerrands. Have used them all.

You can also store in a deed box at your bank. About £50 a year and £10 per access.
Best of fortune.

shaun_from_Africa

UK legal tender is VAT free going in and CGT free coming out.

It's not only UK legal tender that is VAT free.
Just about all legal tender gold coins from around the world, (provided that they are above 990 gold) and all bullion bars are also VAT exempt.
But as stated, the main advantage for UK legal tender is the CGT exemption.

daniel80

I would advise shop around before you buy. I thought the same as you and paid £3000 for a 100 gram gold bar from Capital Mint in March 09. My bar now is still worth less that what i paid for it even after gold rising since i bought it, my own fault not shopping around and checking their mark up.

bendix

daniel80 wrote: »

I would advise shop around before you buy. I thought the same as you and paid £3000 for a 100 gram gold bar from Capital Mint in March 09. My bar now is still worth less that what i paid for it even after gold rising since i bought it, my own fault not shopping around and checking their mark up.

hang on. I thought gold was a no risk investment?

Digger, could you explain please?

DonnySaver

PriyaJain wrote: »

Thanks for your information here. Last day i got a good penny stock investment service provider. You also get Ideas on best Penny Stocks here.

Log on to the site: Thestealthstockreport.com


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