What Type Of Gold Investment Is Best?

MrAndMrs

Thank you everyone for sharing your thoughts on gold and BTL. There were some very strong opinions and some really useful information too. It is estimated that as of 2009, there had only been 165,000 metric tonnes of gold ever mined. This sounds like a lot, but when you think how heavy the stuff is...!


I wish I had bought some gold a month ago before the price increase but that is the benefit of hindsight. Considering all the facts, I think the price of gold has a potential to keep rising. I don't mind too much as this will be my hedge against possible inflation with the QE proposals by the EU. I wasn't too sure about using Sovereign Investments however their prices are too good to ignore. I ordered one sovereign on Friday (to try them out). Should receive it tomorrow. I'll let you know how it goes.


The BTL property is a much larger investment and after the comments and suggestions, I will look at alternatives before taking that forward. Again... I will keep you posted.


If anyone else has any comments or suggestions, feel free to keep posting as I will keep an eye out for any further thoughts and suggestions. Thanks!!!!!!

atush

You do pay tax on income taken from a pension if your total income is above the tax-free allowance.

I agree, but was talking about the accumulation phase as they were talking buying them now, not the income phase in retirement. All the income before pension age, and all the gains (less the CGT limit) would be taxed.

mike88

Despite currency risks with a falling euro the value of gold has dropped today by 0.5%. Not that resilient an investment on the basis of today's evidence.

EdGasket

mike88 wrote: »

Despite currency risks with a falling euro the value of gold has dropped today by 0.5%. Not that resilieant an investment on the basis of today's evidence.

Gold currently up 0.83% today though

jimjames

EdGasket wrote: »

Gold currently up 0.83% today though

Just shows how variable it is.

Anyone comparing it to a bank savings account is crazy!

reeac

Ryan_Futuristics wrote: »

Well many will tell you gold was once considered a very good hedge against inflation, and at one point portfolios would routinely hold 25% or more gold

But nowadays its price tends to be a little volatile and the risk/reward profile of holding it tends to be a little less appealing than other asset classes ... So today, many would advise no more than 2-5% in gold

It seems to me that 2-5percent shows little confidence in its future appreciation and it's too little to do any appreciable hedging if it does appreciate. Worst of both worlds.

EdGasket

zodzo wrote: »

Beware, all that glitters is not gold.

Gary certainly wasn't; turned out to be all wrong didn't he.

MrAndMrs

My intention is to buy a gold sovereign or two every so often. Then I am technically hedging myself against both an increase or a decrease in the gold value. Either way... it should even itself out in the long term. This fits with my long term gold plan.


I received my nice shiny gold sovereign from Sovereign Investments on Monday morning. Really impressed as I only order and paid for it on Friday. Will definitely buy from them again.


Let's hope the price of gold continues to rise...

DiggerUK

MrAndMrs wrote: »

My intention is to buy a gold sovereign or two every so often. ............Let's hope the price of gold continues to rise...

Thanks for the heads up on sovinvest, always nice to find a cheaper source.
Buying as and when we could was a good strategy for us. Our average has been just shy of 650GBP per ounce, which saw us on the right side despite the massive drop since 2011.
For us we want price to continue north, you on the other hand should be hoping for more drops.
..._

IronWolf

MrAndMrs wrote: »

Considering all the facts, I think the price of gold has a potential to keep rising. I don't mind too much as this will be my hedge against possible inflation with the QE proposals by the EU.

Gold is not a hedge on inflation, if it was then the inflation adjusted gold price would be fairly flat, which it is not.



If you had bought gold during the last boom you would have been down for the next 30 years, by as much as 75%. Why do you think the latest boom is any different?