Investing in Gold with Hargreaves Lansdown

Mark_Roworth

I have a SIPP with HL, and I'm looking to shift some of my SIPP, about 1/4 into gold to spread risk.

They have two stocks that effectively seem to be buying bullion, which are named:
- Gold Bullion Securities Secured Undated Zero Cpn Notes (GBP)
- ETFS Commodity Securities Gold (GBP) (BULP)

I think these are effectively shares that track the price of gold, but are backed by swaps. I'm not entirely sure what a swap is though. How secure would it be to invest in these?

An advice in reasonably simply English much appreciated (I'm not a broken/economist etc).

Thanks,

Mark

Ryan_Futuristics

Mark_Roworth wrote: »

I have a SIPP with HL, and I'm looking to shift some of my SIPP, about 1/4 into gold to spread risk.

They have two stocks that effectively seem to be buying bullion, which are named:
- Gold Bullion Securities Secured Undated Zero Cpn Notes (GBP)
- ETFS Commodity Securities Gold (GBP) (BULP)

I think these are effectively shares that track the price of gold, but are backed by swaps. I'm not entirely sure what a swap is though. How secure would it be to invest in these?

An advice in reasonably simply English much appreciated (I'm not a broken/economist etc).

Thanks,

Mark

What I'd say is there was a period (a very long period) where gold was a safe haven

I believe the 'no brainer' portfolio was 25% gold, 25% equities, bonds, cash

People *may* pile into gold again now ... but ... they may also leave rather quickly ... It's seen as a volatile asset class today ... I wouldn't have more than 5% of a portfolio in gold, personally (unless you REALLY know the commodities markets)

DiggerUK

Your post makes it crystal clear you haven't done much research in to gold. It seems you had a bright idea one morning.
As you are planning for retirement, there is no real need to have paper gold, or physically backed paper gold, in a SIPP.
You could have such holdings in an ISA, or even buy your own physical gold. You lose access to your funds till 55 in your SIPP. http://moneyweek.com/buy-gold-where-and-how-to-gold-bullion-coins-bars-14600/

I'm a huge fan of gold and have most of our retirement savings in physical gold holdings, so don't think I am knocking your idea. It's just that your understanding seems very lacking.
Gold is down a third from it's high in September 2011, and the economic crisis shows no sign of really ending. But please, do some more research. http://goldprice.org/gold-price-uk.html
..._

Ryan_Futuristics

I've got gold giving a negative 10-year return here - to me it's just a very difficult commodity to value

http://www.researchaffiliates.com/AssetAllocation/Pages/Commodities.aspx

Mistermeaner

There is no such thing as knowing the gold market, it cannot be known.

kidmugsy

Mark_Roworth wrote: »

eem to be buying bullion, which are named:
- Gold Bullion Securities Secured Undated Zero Cpn Notes (GBP)
- ETFS Commodity Securities Gold (GBP) (BULP)

I think these are effectively shares that track the price of gold, but are backed by swaps. I'm not entirely sure what a swap is though. How secure would it be to invest in these?

The first isn't based on swaps; it claims simply to own bullion. In fact if it weren't in a SIPP, you would be entitled to demand your bullion if you wanted to. I'm not sure whether the second uses swaps, but I'll bet Professor Google knows.