Is gold the best option?

vectistim

atush wrote: »

A POA is in order here.

I think this is a good idea and worth looking into.

Igol

I appreciate I may be bumping an old thread and that there may be others on this subject, but out of the original posters on here how many folk are still comfortable with their opinions now we all know that our savings arent as safe as we thought?

I'm not looking to play the ISA game this year, my current one will be pretty much wiped out on home improvements, my stocks and shares are ticking over at 11% so now I'm thinking Britannias as this years investment portfolio.
So is the 8% Quidco offer for buying from the Royal Mint worth it or do I look elsewhere for my coins?

grey_gym_sock

Igol wrote: »

now we all know that our savings arent as safe as we thought

it's always been the case that desperate governments may impose unusual/outrageous taxes. not only on cash deposits, so there's no easy answer.

padington

zippy1969 wrote: »

Most of you have been really helpful...thank you.

To reiterate...the person will not consider putting the money into a bank or building society.

The person is not a friend but someone I've come across in my work. The person concerned has 'problems' regarding mental health but not severe enough that they are deemed incapable of managing their monetary affairs. However, they are receiving support and guidance.

Please can those making the less constructive remarks please refrain from doing so and just concentrate on the questions raised in the OP?

Try bullionvault, you can now save a regular amount every month but its kept as gold in a vault. It's safer than a bank account in many ways because you own the gold even if the bullionvault goes bankrupt. You still have the problem that gold is a gamble and has many big players all wanting the price to be low right now which includes the current western elite ( to defend their currency's ) and the future eastern elite ( to buy gold cheaply to support their future currency once the world becomes distrustful of currency's based on nothing but a promise) but that unusual dynamic wont last forever ...

grey_gym_sock

the great thing about the theory that "big players" want the gold price to be low is that you can keep using it however far the price falls.

how does a low gold price support a currency which isn't linked to gold? most ppl care about how much food and energy their paper money can buy, not how much gold.

padington

grey_gym_sock wrote: »

the great thing about the theory that "big players" want the gold price to be low is that you can keep using it however far the price falls.

how does a low gold price support a currency which isn't linked to gold? most ppl care about how much food and energy their paper money can buy, not how much gold.

Why do you think the price of gold goes up lots more when America sleeps ?

What do you think the federal reserve is doing with all that quantative easing ? Do you think the property markets or the equity markets are not being manipulated also ?

Is gold not a useless way for humanity to invest its energy and wouldn't you try your best to ensure that as many people as possible invested their energy into other clever people and their innovative idea's rather than a slab of metal?

If you're economic might was based on a paper currency system, wouldn't you do your best to undermine anything that could render your currency less legitimate ?

grey_gym_sock

padington wrote: »

Why do you think the price of gold goes up lots more when America sleeps ?

do you have any evidence for that?

actually, never mind, because what would it prove if it were true? nothing.

What do you think the federal reserve is doing with all that quantative easing ? Do you think the property markets or the equity markets are not being manipulated also ?

the effects of QE have included inflating assets prices generally. including gold. i thought you said they were trying to reduce the price of gold. make your mind up.

Is gold not a useless way for humanity to invest its energy and wouldn't you try your best to ensure that as many people as possible invested their energy into other clever people and their innovative idea's rather than a slab of metal?

If you're economic might was based on a paper currency system, wouldn't you do your best to undermine anything that could render your currency less legitimate ?

this is all just speculation about motive. in the absence of any evidence of price manipulation, or even of credible explanation of how it would be done, it's just hot air.

haven't you read detective stories? if all you have is motive, your case is very weak.

IronWolf

The price of gold could crash, then how would he feel?
In this situation I would personally invest in shares, he could keep the certificates in his house, but it doesnt matter if they're stolen as he will still legally be a shareholder. Or has he considered government bonds? They at least pay a bit of interest and its possible a burglar wont realise what they are.

Failing that, I'd rather have cash than gold, tell him to buy a good safe, hide it well and have it secured to the structure of the house. Also he should invest in an alarm system and possibly CCTV

N1AK

zippy1969 wrote: »

Please can those making the less constructive remarks please refrain from doing so and just concentrate on the questions raised in the OP?

They are making an incredibly stupid decision, but taking that decision as a a given here is what I would say and suggest:

• Holding cash is a big mistake if they are expecting to need the money in 10+ years time (it will have lost 25%+ of value).
• Gold is riskier in the short term but will likely move with inflation in the longer term
• Insurance for thousands of pounds worth of precious metal or cash is going to be a considerable cost

If they aren't willing to consider equities, savings, bonds (inc government), pensions, annuities or any other way of putting some of the money outside there 4 walls then the best I could suggest is:

• Spend as much as possible on expected future expenses (house upgrades etc) now (to avoid inflation).
• Put 1/3-1/2 in gold or similar assets
• Consider other inflation matching assets (certain wines, art etc) for a small chunk (though frankly I wouldn't trust someone this irrational to do this).
• Get insurance for a large chunk of the remaining cash

All that said, if I was a financial advisor and a client came to me and was that clearly irrational about handling there money I would refuse the business and give no advice beyond that they should not tell people they have that much in their house and should seek insurance that covers it as a matter of urgency.

Biggles

IronWolf wrote: »

In this situation I would personally invest in shares, he could keep the certificates in his house, but it doesnt matter if they're stolen as he will still legally be a shareholder. Or has he considered government bonds? They at least pay a bit of interest and its possible a burglar wont realise what they are.

I'd go along with shares.

He can hold them in the form of certificates; he can hold several companies as diversification; in the event of fire or theft, certificates can be replaced; they provide an income; and they will (generally tend to) increase in value over a period of time. And, of course, his money won't be held by the dreaded banks.