What Type Of Gold Investment Is Best?

antrobus

Generali wrote: »

If you want a hedge against inflation buy an inflation-linked Government bond....:

Scratches head, and wonders why someone would want to invest in a hedge against inflation, when the CPI is 0.5% and the whole Eurozone is in a tizzy over deflation.

gizmorat

MrAndMrs wrote: »

Thanks for the advice. I don't think I'll ever be 100% sure. I've never really managed a portfolio before which is why I'm grabbing suggestions and tips where I can.
...

Speculating on the price of gold is a sure fire way of losing money, so best left to professionals using other people money

The only good tips I've read about investing are from the late Harry Browne, in particular;

Rule #4: No one can predict the future.
Rule #8: Don't let anyone else make your decisions.
Rule #9: Don't ever do anything you don't understand.

DiggerUK

The majority of Digger Mansions retirement savings are in physical gold, we are happy with our decision. It is a hedge against high inflation, but it's main strength is as a hedge against financial calamities.
Equities could turn to the value of the paper they are printed on, receipts from BTL could devalue, but gold always holds a value.
I'm no fan of BTL, way too many problems. But if that is your choice wait till the housing market tanks before buying.

Best prices are available here.
http://www.elminvestments.co.uk/gold-coins.html
http://atkinsonsbullion.com/gold/gold-coins/sovereign

Take a look at the last 30 years price moves in gold. At the moment it is still off it's all time high in September 2011. We always say it is a purchase that is for five years plus.
http://goldprice.org/gold-price-uk.html

Enjoy retirement.
..._

EdGasket

antrobus wrote: »

Scratches head, and wonders why someone would want to invest in a hedge against inflation, when the CPI is 0.5% and the whole Eurozone is in a tizzy over deflation.

Well a pretty obvious reason is QE. Don't you think there will be consequences of all the money-printing going on? Gold has proved a good inflation hedge over many centuries and has outlived all paper-based currencies though I take the point that it is very volatile so short-term that overrides it's inflation protection qualities.

I hold gold in ETF funds and find these low-cost, liquid, and convenient. If things are so bad that these ETF's have folded, I don't think gold bars will be of much practical use either.

MrAndMrs

DiggerUK wrote: »

Best prices are available here.
http://www.elminvestments.co.uk/gold-coins.html
http://atkinsonsbullion.com/gold/gold-coins/sovereign

Take a look at the last 30 years price moves in gold. At the moment it is still off it's all time high in September 2011. We always say it is a purchase that is for five years plus.
http://goldprice.org/gold-price-uk.html

Enjoy retirement.
..._

Thanks for the bullion suggestions. Just had a look. Not sure how you worked out what the best gold prices are... At Elm I would pay £214 for each sovereign!! Atkinsons is better at £211.30 each sovereign - which is pretty much the same as Hatton. But Sovereign Investments are selling Edward and George Sovereigns at £207 each today!! Have a look if you don't believe me... http://www.sovereigninvestments.co.uk/buy-and-sell-gold-coins.html


I am a little concerned about the recent price of gold (5 years), especially as it dropped quite a lot since it's peak in 2011. However as one of the other posters mentioned it does seem to be heading up quite rapidly over the last month. I suspect it is from the fear of massive quantitative easing in Europe...?! I might be wrong though.


Lastly, thanks!! I hope I really enjoy retirement too. Still got a few years left to plan (and work) yet though.

MrAndMrs

TheTracker wrote: »

I know someone who sings the praises of BullionVault. Have you looked?

Thanks for the tip. I've just had a look. Do you know if they sell physical gold like sovereigns? After considering everything I think I'm going to go down the sovereign route. Although they do look awfully small for £200 odd...!! But the CGT and VAT saving looks nice.

MrAndMrs

kendall80 wrote: »

it is really shiny though!

loooool!!!!

mike88

This is utterly ludicrous. Gold is not a hedge against inflation. It's not a particularly good investment either and is very volatile. Those who take physical gold are at greater risk of getting it stolen than investments becoming worthless. Buying gold is akin to those who think the World as we know is coming to an end and want to build a nuclear shelter at the bottom of their gardens.

ColdIron

Kendall80 wrote: »

It is really shiny though!

And you can talk like a pirate

TheTracker

MrAndMrs wrote: »

Thanks for the tip. I've just had a look. Do you know if they sell physical gold like sovereigns? After considering everything I think I'm going to go down the sovereign route. Although they do look awfully small for £200 odd...!! But the CGT and VAT saving looks nice.

Outfits like BullionVault walk a middle line between physical gold like sovereigns and ETFs. You are physically buying physical gold but you never lay your hands on it by default. The gold is stored in a vault which you select (eg Swiss or UK). However, you can take physical possession of standard sizes (100/400g) at standards fees (2.5-5%) or higher fees for smaller sizes. It's all on the front page of their website.