Investing in gold?

Jdevaney89_2

Ive been looking online tonight for investing in gold and how to go about it and i seem to be struggling somewhat, now ive seen a type of gold called Umicore and for 1gram its £39 but for a different type of gold on ebay i can get 5gram for £5? I dont understand this at all?

Is there anyone that can explain this to me and tell me which type of gold i should be going for? Ideally i want to buy roughly £20 per week to save myself as a kind of a hobby but also for a long term investment alongside putting money in cashform into an ISA.

Any help would be appreciated.

Thanks

James.

MoneySaverLog

PHGP or PHAU are ETF's that allow investment in a ISA for Gold

In terms of holding the physical stuff, I would not trust ebay and go to a reputable dealer.

Jdevaney89_2

MoneySaverLog wrote: »

PHGP or PHAU are ETF's that allow investment in a ISA for Gold

In terms of holding the physical stuff, I would not trust ebay and go to a reputable dealer.

I intended on going to a reputable dealer i wouldnt trust that website in the slightest, at the moment im making enquiries and trying to understand what im doing.

MoneySaverLog

Basically the spot price of gold is currently
£943.7632/oz
£30.3427/g

Expect to pay a premium above the spot price for the physical. So whoever is selling 5g for £5 would be trying to scam you.

Jdevaney89_2

MoneySaverLog wrote: »

Basically the spot price of gold is currently
£943.7632/oz
£30.3427/g

Expect to pay a premium above the spot price for the physical. So whoever is selling 5g for £5 would be trying to scam you.

SPOT PRICE! Why didnt i think of that thank you, that clears it up completely, thank you again!

Im wanting to spend like £20 per week on gold, pros and cons of this? Im going to be saving along side this too?

jimjames

Jdevaney89 wrote: »

SPOT PRICE! Why didnt i think of that thank you, that clears it up completely, thank you again!

Im wanting to spend like £20 per week on gold, pros and cons of this? Im going to be saving along side this too?

Any reason why gold and not a S&S ISA? There is no guarantee that the price of gold will go up; there is no guarantee that share prices will increase but it seems more likely than gold always increasing.

Cash and gold are at opposite ends of the risk scale but you don't mention having anything else in between.

Jdevaney89_2

jimjames wrote: »

Any reason why gold and not a S&S ISA? There is no guarantee that the price of gold will go up; there is no guarantee that share prices will increase but it seems more likely than gold always increasing.

Cash and gold are at opposite ends of the risk scale but you don't mention having anything else in between.

Im not a massive fan of stocks and shares, in the last 10 years gold has risen from £341 per oz to £1400, or above stated today its at £943 per oz, surely in 10 years itll be worth something more then what it is now?

grey_gym_sock

what cash and gold do have in common is that the long-term returns from holding them are very low. but perhaps that's what you want!

or: perhaps you have the ability to predict when the gold price will change direction, so its long-term average return won't affect you: you'll only be holding it when it's going up.

if you did want higher long-term returns, you might want to look at shares, or perhaps property.

MoneySaverLog

Some stocks have out performed gold. But I get where you're coming from. Besides I think the stock market is reaching a point of correction. Then where will the money end up going?

Jdevaney89_2

Aswell as saving each week id like to invest a little amount of money, as above stated i was thinking around £20, i dont mind if its value isnt high now aslong as it is in the future. I thought if i bought gold on a weekly basis then in 10-20-30 years it may have some real value, im starting to think my idea isnt a great one I dont know the first thing about shares and i dont have the money to get into property yet!

Wizards_Apprentice

We bought gold GS Fund recently as the market fell back, if you want that exposure as mentioned above an ETF play or a investment trust/ fund that investments in gold may be your best entry point as you are a retail investor. Physical gold isn't really a logical investment unless you have lots of money and a custodian somewhere. To be honest, it depends on your objective and what type of return you are after. Alot of cheap equity out there are present, fundamentals still have some steam in them.