Long term savings? Gold?

Ark_Welder

DiggerUK wrote: »

I am well aware of that, but as plarka was the author of the thread I addressed my comments to them, not you.
I'm sure plarka may be interested in the gilts you mentioned paying 15 and 25%, seing as how they are asking for suggestions as to what to do with their cash.
It would show some respect to the author of this thread if you provided a source for your claim whilst you are at it.

Not atush, not plarka, but Ark...

Not paying, but returned over 12 months - given that you did state that you knew of nothing that had returned similar to gold over that period of time.

Google 2011 review: Equities from the FT, or try
http://www.fixedincomeinvestor.co.uk/x/analysis.html?type=bond-of-the-week&cat=analysis-comment
http://www.fixedincomeinvestor.co.uk/x/analysis.html?type=bond-of-the-week&cat=analysis-comment&y=2011&aid=699

Alternatively, a plot of gilt index funds on Trustnet with total return selected.

Rollinghome

koru wrote: »

Ah, I was trying to find an explanation of how they derived the return of cash, but I could not find anything. In that case, they are probably understating the return on cash by at least 2%. The figures for cash should probably be closer to the figures for gilts.

I take your point about Barclays not being entirely disinterested, although I think they manage a lot of gilts and bonds funds as well as equity funds, so they are not necessarily predisposed to see equities as being a better place for their clients to put their money than gilts.

Of course, if Barclays were pulling out all the stops to encourage people to invest in equities, they could have looked at the returns and variability of long-term returns from a well diversified equity portfolio, rather than just limiting to UK large caps. I suspect this would show a higher average return and a lower likelihood of poor long-term returns.

Yes, their study clearly under-estimates the returns possible on cash, whether that cash is in the best available savings account or in NS&I savings returning 0.5-1.5% +RPI, and similarly over-estimates the on returns investments, most especially in retail products such as unit trusts where total true annualised costs can be well in excess of 3% yet not allowed for in the study.

All banks employ salesmen on commission and bonuses to persuade their clients to move from savings to investment. No-one employs salesmen to persuade clients to do the reverse: to move from investments to savings. Unsurprisingly, their sales material, including such studies, shows the same bias.

There are lots of artfully contrived "facts" and "data" which are trotted out by salesmen, others in the industry, and the press, that too often come to be regarded as totally objective and accepted without question. Whenever commercial organisations provide "research" for free, they do so for a reason.

The perfect answer is to do your own research but often it's not so easy. The alternative is to remain sceptical and always look a gift horse in the mouth. Whenevever someone provides investment information it pays to consider where their interests lie.

fizio

haf63 wrote: »

Hi,
I'm actually looking to buy into gold over the coming few months and having done some research I have concluded that I'd like to do it via an ETF in an ISA through Hargreaves Lansdown (just my conclusion).
Anyway I tried to find out the choice of funds that meet my criteriea on teh H&L website but am struggling to work out which are ETF's and also eligible for ISA as the ones with ETF in teh title aren't eligible and the ones that are eligible don't mention they are ETF. Any advice appreciated as I'd like to nail down the fund so I can then work on the timing,

As an aside, this is to have a balanced portfolio as I already have a good split of stocks/bonds/property/etc and the general advice is to have around 5% of portfolio in gold (assuming you believe that advice)

Having dug a bit deeper and gone through the H&L Gold Funds its looking like none of the ETF's are ISA eligible and the ones which are tend to be the likes of :
ETFS Physical Gold : PHAU is a transferable security that can be created or redeemed on demand (by market-makers). It trades on the Exchange just like an equity and its pricing and tracking operate similar to an ETF.

Not sure thats an ETf and the other ones listed are ETC's.
Can't believe its this hard to find a asuitable ETF for my ISA

kar999

haf63 wrote: »

Having dug a bit deeper and gone through the H&L Gold Funds its looking like none of the ETF's are ISA eligible and the ones which are tend to be the likes of :
ETFS Physical Gold : PHAU is a transferable security that can be created or redeemed on demand (by market-makers). It trades on the Exchange just like an equity and its pricing and tracking operate similar to an ETF.

Not sure thats an ETf and the other ones listed are ETC's.
Can't believe its this hard to find a asuitable ETF for my ISA

I have ETFS Metal Securities Ltd Physical Gold (GBP) PHGP in my HL Vantage ISA. (Basically the same as PHAU only in GBP)

Key features

[FONT=Wingdings,Wingdings][FONT=Wingdings,Wingdings]�� [/FONT][/FONT][FONT=Verdana,Verdana][FONT=Verdana,Verdana]Tracks the price of gold, not a portfolio of equities [/FONT]
[/FONT][FONT=Wingdings,Wingdings][FONT=Wingdings,Wingdings]�� [/FONT][/FONT][FONT=Verdana,Verdana][FONT=Verdana,Verdana]Simple to trade on a major stock exchange [/FONT]
[/FONT][FONT=Wingdings,Wingdings][FONT=Wingdings,Wingdings]�� [/FONT][/FONT][FONT=Verdana,Verdana][FONT=Verdana,Verdana]Settled and held in ordinary brokerage accounts [/FONT]
[/FONT][FONT=Wingdings,Wingdings][FONT=Wingdings,Wingdings]�� [/FONT][/FONT][FONT=Verdana,Verdana][FONT=Verdana,Verdana]Transparent tracking with clear pricing [/FONT]
[/FONT][FONT=Wingdings,Wingdings][FONT=Wingdings,Wingdings]�� [/FONT][/FONT][FONT=Verdana,Verdana][FONT=Verdana,Verdana]Backed by physical, allocated metal [/FONT]
[/FONT][FONT=Wingdings,Wingdings][FONT=Wingdings,Wingdings]�� [/FONT][/FONT][FONT=Verdana,Verdana][FONT=Verdana,Verdana]Provides additional portfolio diversification [/FONT]
[/FONT][FONT=Wingdings,Wingdings][FONT=Wingdings,Wingdings]�� [/FONT][/FONT][FONT=Verdana,Verdana][FONT=Verdana,Verdana]Able to short, and margin eligible [/FONT]
[/FONT]

Factsheet: http://online.hl.co.uk/funds/fund_report/document_type/factsheet/sedol/B285Z72


Search here for others at HL

http://www.hl.co.uk/shares/exchange-traded-funds-etfs

koru

When I read about Warren Buffett's recent comments about cash being the riskiest investment, it reminded me of this thread.
https://www.businessinsider.com/warren-buffett-the-investment-everyone-thinks-is-safe-is-actually-the-riskiest-in-the-world-2012-2