Taking out a personal loan to invest in Gold

Ark_Welder

Geoff23 wrote: »

I agree. You'll find that most of the UK bullion dealers have run out of old bullion sovereigns and now have waiting lists of buyers for those, but in the past few days they have taken delivery of a load of shiny new 2011 sovereigns straight from the mint. This tells me that somebody has decided to boost the production of new gold coins. Where is the gold coming from, given that all over the world people/banks/organisations are buying lots more of the stuff and nobody appears to be selling? The obvious suspicion is that this is gold that somebody-else already thinks they own! Could it be the UK's national gold reserves?

It could be some investors that have been in for a long time and have decided that now is a good time for them to get out.

Do you have anything to back up your statement that it might be the UK's reserves and give your statement some credibility? One of the major problems with gold is the amount of conspiracy theories and out-and-out gossip that is basically a lot of chaff.

gadgetmind

Investment Trusts are allowed to gear, and many do, but they keep it down to 10-15% of their NAV. The justification seems to be that they don't have the opportunity risk of a large cash holding while still being able to react to opportunities.

I have *once* borrowed money to make an investment. I drew down an extra £50k on my mortgage (with Leeds Perm) and stuck the money into a Leeds Perm savings account, and thus qualified for £12k+ of free Leeds Perm shares. Oh how I miss carpetbagging!

Ark_Welder

geoff23 wrote: »

i'm just speculating..........that quite a few of the conspiracy theories are actually true.

. .

deutsch

I didn't expect this many replies!

How serious was I about this? It was just some random idea in my mind. I would never come up with this stuff usually, so I feel inspired to take a punt. I'm a saver, and ever since interest rates were pathetic and inflation going up, I'm just been looking at different ways to make my money work for me. I haven't seen this idea anywhere - probably due to how absurd it sounds. Just little bits of things I know all coming together becoming one silly idea.

I can't remember a recent point in history when loans were as cheap as now. It's just calling for a opportunity to take one out, and invest it in somewhere you believe will make you profit. (obvious past break even first and then past the best savings account out there).

le_loup

MoneySaverLog wrote: »

Overpriced yellow bricks in my opinion that have no real practical use whatsoever.

Doorstops?
You heard it here first "The future is doorstops".
.... can one buy doorstop futures?

jimjames

deutsch wrote: »

I didn't expect this many replies!

How serious was I about this? It was just some random idea in my mind. I would never come up with this stuff usually, so I feel inspired to take a punt. I'm a saver, and ever since interest rates were pathetic and inflation going up, I'm just been looking at different ways to make my money work for me. I haven't seen this idea anywhere - probably due to how absurd it sounds. Just little bits of things I know all coming together becoming one silly idea.

I can't remember a recent point in history when loans were as cheap as now. It's just calling for a opportunity to take one out, and invest it in somewhere you believe will make you profit. (obvious past break even first and then past the best savings account out there).

So if you are determined to borrow money to invest why not invest it in something that will give more of a spread of risk that one asset that has risen massively over the last few years.

jimjames

Geoff23 wrote: »

I'm just speculating. I can't understand where all the gold is coming from. We are told central banks are buying it, people in Asia are buying, small investors in the west are buying...who is selling it?

Is anyone selling? How many ETFs have to hold the actual gold that people are buying by holding their shares?

If it isn't actual gold then surely that is another risk and possible explain why there isn't as much actual selling

purch

...who is selling it?

Nobody........that's why the price is going up.

If people were selling, the price would be going down.

that quite a few of the conspiracy theories are actually true

Which one's ?

purch

I can't remember a recent point in history when loans were as cheap as now

There is a reason for this.

Central Banks and Governments are creating vast amounts of new money and keeping interest rates at low to zero levels, in order to stave off the greatest deflation in history.

Borrowing this money to buy an asset means that you believe that they will be successful in this course of action.

lvader

purch wrote: »

Nobody........that's why the price is going up.

If people were selling, the price would be going down.



Which one's ?

If someone is buying, another person is selling.