Confused about Gold

rickypatel89

Hi,

Sorry to start a new thread about this. I'm sitting on a bit too much cash at the moment, and with the recent hiccup in Gold, I've really started to consider putting some money in as a long term investment.

I'm looking to buy quite a few Oz. Reading around, many people say that it's better to buy coins rather than bars, why?

Also if possible, could someone explain to me what the difference is between sovereigns, britannia, eagles, maples, krugerrands etc. I'm just looking to buy some standard gold coins.

Thanks for all the help.

atush

So, you have cash.

Do you own Property? Do you own Equities? Do you have shares? Do you have a pension?

Obv if you have no debt at all, and have only cash you need to diversify.

but why to Gold (which produces nothing, and has no income stream)?

Why not consider investments that can grow and produce (and aren't falling dramatically right now and have been dropping for some time).

I hold some gold (but recently sold a lot) but am not looking to buy more now.

This may not be the best asset class for you, and if you invest more than 5% of your net worth, I don't like your chances.

Also if possible, could someone explain to me what the difference is between sovereigns, britannia, eagles, maples, krugerrands etc.

UK, USA, Canada, and south africa are the differrences

rickypatel89

i have a house (mortgage free), I have a considerable amount in equities and some bond holdings.

shaun_from_Africa

atush wrote: »

UK, USA, Canada, and south africa are the differrences

One of the differences, but for investment advice, not an important one.
The main difference is that any profit made from the sale of Sovereigns and Britannias will not be liable for capital gains tax whereas the other mentioned coins could be. (Depending on the circumstances of the investor)

atush

Yes, there are tax differences, but that isn't what was asked.

If the money you wish to invest in Gold (or any PM) isn't more than 5% of your total wealth, go ahead if you like. I feel it has a bit further to fall before any substantial rise really.

Jegersmart

rickypatel89 wrote: »

Hi,

Sorry to start a new thread about this. I'm sitting on a bit too much cash at the moment, and with the recent hiccup in Gold, I've really started to consider putting some money in as a long term investment.

I'm looking to buy quite a few Oz. Reading around, many people say that it's better to buy coins rather than bars, why?

Also if possible, could someone explain to me what the difference is between sovereigns, britannia, eagles, maples, krugerrands etc. I'm just looking to buy some standard gold coins.

Thanks for all the help.

LOL at the "investment advice" given by posters who have no idea of your circumstances by the way....

There are tax implications as others have mentioned, and clearly the smaller the denomination the more versatility you have in selling whatever proportion you deem fit, should you see fit in the future. i.e. if you buy a (or more) standard 12.4kg bar, then you cannot sell some of it (easily).

Good luck, although I see the price heading towards 1100 per ounce in the next several months potentially.

J

rickypatel89

Thanks for the advice, my investment in gold will be around 5% of my wealth. So are britannia's the best way to go? And can anyone recommend any good dealers to buy from?

Thanks

atush

Britannias mean you won't have to pay tax on a gain (if indeed you have a gain).

I haven't bought coins recently (used to use a coin dealer back int he day) be careful if buying online.


as for J

LOL at the "investment advice" given by posters who have no idea of your circumstances by the way....

That is why I asked for more info as we don't read minds here.

grey_gym_sock

britannias also mean that, if you make a loss, you won't be able to set it off against gains on other assets (e.g. shares).

atush

Surely no one ever makes a loss on Gold Grey? :rotfl:

rickypatel89

Ok, thanks for the info about CGT. Any good places where I can buy online. I'm just looking to buy 1Oz Britannia's.