Gold? Worth it?

investme

Hey
Pretty amateur question but quite simply, is it worth investing in gold?

Some of you may of seen a recent post by me about where to save my money and i am going to opt for an NS&I savings certificate. However after considering gold, i may split my investment with half in that and half in gold. What i want to know is. is it worth doing?

I was considering something like goldmoney.com, where you deposit cash like a bank account, but own gold and obviously prices change accordingly.

I figured as a new investor, it'd be wise to avoid stocks, shares, spread betting etc as i have no idea what i'm doing.

dunstonh

is it worth investing in gold?

You mean is it worth buying gold when many feel that it is priced so high and way above its long term average trend that it is a bubble just waiting to burst?

ome of you may of seen a recent post by me about where to save my money and i am going to opt for an NS&I savings certificate. However after considering gold, i may split my investment with half in that and half in gold. What i want to know is. is it worth doing?

Thats a pinball approach. Bouncing around the risk levels with NS&I right down at the bottom of the risk pile and gold right at the top.

I figured as a new investor, it'd be wise to avoid stocks, shares, spread betting etc as i have no idea what i'm doing.

Shouldnt you apply the same principle to buying gold then?

investme

dunstonh wrote: »

Shouldnt you apply the same principle to buying gold then?

I don't know. That's why i'm asking.

VfM4meplse

I don't think that gold is a good investment at this point in time. Wait until the price comes down.

Don't forget that unless you have a secure facility of your own, the safe storage associated gold will actually cost you year-on-year. So buy low and sell high.

atush

I am an amateur investor.

I bought gold, but bought it years ago around 600/oz. I bought it thru my stockbroker acct (online).

I sold half recently when it topped 1400. One because I expect a correction at some point, and two- to take profits. It is still gping higher, and I am still reaping the benefits. But I am not looking to buy more.

When my mom died in 2001, she had a buch of gold coins in her safety dep box. When I sold them as her executor, I could see she had paid more for most of them then they were worth when I sold them. If you are happy taking that risk, then fine buy some. But maybe not half? I don't expect an immediate downturn in the price due to the weakness of USD due to quantative easing as well as strong demand (esp in countries such as India).

Froggitt

Im also thinking of gold even though its pretty high. Reason......half the world is getting richer, ie India and China, and will want to start buying gold jewellery like the West has done over the years. People in those countries also seem to like gold teeth for some reason.........

Linton

Gold may or may not be a good investment, only time will tell. However it is a very volatile investment - more so than say the FTSE. So putting half your investment pot there would be, IMHO, rather foolish.

Lokolo

All your eggs in one basket.....

mr_fishbulb

Froggitt wrote: »

Im also thinking of gold even though its pretty high. Reason......half the world is getting richer, ie India and China, and will want to start buying gold jewellery like the West has done over the years. People in those countries also seem to like gold teeth for some reason.........

They're not just going to be buying gold though. My view is that they will also look to buy Western premium brands of cigarettes, alcohol, and Mulberry handbags.

A couple of benefits in investing in those sort of companies are they're priced in £s so you don't have some of the currency risk, plus they pay dividends.

jamesallen

I think gold is a big gamble. It has gone up consistently for some time now, and unless underlying debt levels are tackled, I think there are going to be worries about Western economies for some years to come; HOWEVER, you are buying something with no intrinsic value, and who knows? It could shoot down in price if the dollar recovers or if people choose a new safety currency.

Of course, the value of everything is relative to a degree. But at least if you buy into any normal company which sells things because they have real, practical worth, you can see the fundamentals, the profits, the cash sheet and so on. With gold, you're just putting your money down in the hope that a safety metal will rise in value.

I'm sure gold has its place in a diversified portfolio: I'm just saying, few people predicted gold would come this high, this quickly; and I'm sure few people will have guessed correctly how low it will go, and how quickly, when it does collapse.

Reaper

I once read that you should do the opposite of what governments do with gold because they always get it wrong. They buy when it is high and sell when it is low.

It was only a jokey comment that I wouldn't put much faith in but many emerging market countries are currently buying gold...!