Gold and Silver advice

bydnas

After ever decreasing returns on my ISA and a lot of research into precious metals I made the decision to cash out and purchase some silver bars and coins. I bought a couple of gold sovereigns but research points to silver for best medium/long term returns.

I don't buy for an income, I buy for my nest egg, but there is folk out there who buy quantity and sell on Ebay for a pretty profit!
I use atkinsonsbullion.com and silver-to-go.com for best price per oz but anyone with cheaper suppliers, info will be much appreciated!
You CAN buy silver UK VAT free from Silver to Go. You don't pay UK VAT from them as they only sell cash denominated coins which counts as currency which is vat free to the UK!
I'm not rich either! With the price of precious metals at the moment you don't need to be!
I'm not a financial adviser and what I post is my opinion. If you're thinking of getting into buying gold or silver do your own research.

The future's bright the future's shiny! :beer:

puk999

bydnas wrote: »

After ever decreasing returns on my ISA

What was your ISA's asset allocation?

pinkteapot

What's better - gold bars or sovereigns?

I understand that the main difference is that gold bars can be sold to anyone who buys gold, as it can be melted down, whereas coins aren't allowed to be melted down so the market is more limited when it comes to resale. But sovereigns have some collect-ability value.

My brother has bought a few gold coins but I thought they may be less liquid than chunks of gold? What's the view?

AndyT678

I have a few sovereigns that I bought about 5 or 6 years ago. They're probably worth less than I paid for them, they generate no income and they cost me money to insure.

They're fine as shiny, pretty things to look at but not a great investment IMHO. If you really think gold will go up in price then buy shares in a gold mine. If you think the world's about to devolve into anarchy and lawlessness, buy tins of tuna.

bydnas

puk999 wrote: »

What was your ISA's asset allocation?

£75 -£100 in per month depending on what I could manage.
Interest when I opened it was 2.8% or somewhere around. It's now a measly 1.31%!

AndyT678

bydnas wrote: »

£75 -£100 in per month depending on what I could manage.
Interest when I opened it was 2.8% or somewhere around. It's now a measly 1.31%!

Going from £100 per month + 100% capital protection to £0 per month + chance of losing up to about 75% of the capital wouldn't be my choice. Each to their own though...

bydnas

pinkteapot wrote: »

What's better - gold bars or sovereigns?

I understand that the main difference is that gold bars can be sold to anyone who buys gold, as it can be melted down, whereas coins aren't allowed to be melted down so the market is more limited when it comes to resale. But sovereigns have some collect-ability value.

Sovereigns over bars. This is the first I've heard coins not allowed to be melted? Not sure that's true but I'll stand corrected if it is.
I only have a couple of Sovs and a few 10th oz coins. silver's more my ting!

jimjames

puk999 wrote: »

What was your ISA's asset allocation?

I'm guessing 100% cash.

Bizarre decision to jump from cash to gold. So rather than getting a low interest rate you get none and rather than having capital security you have none.

AndyT678 wrote: »

Going from £100 per month + 100% capital protection to £0 per month + chance of losing up to about 75% of the capital wouldn't be my choice. Each to their own though...

Whoops, just seen you posted the same.

bydnas wrote: »

£75 -£100 in per month depending on what I could manage.
Interest when I opened it was 2.8% or somewhere around. It's now a measly 1.31%!

And now you get 0% on gold rather than 1.31% on savings.

I really don't understand the logic. If you want a better return and don't need capital security then you can get 4% on equity income funds.

atush

I agree very poor logic. and they dont understand the term asset allocation either. Not a great sign.

bydnas

AndyT678 wrote: »

I have a few sovereigns that I bought about 5 or 6 years ago. They're probably worth less than I paid for them, they generate no income and they cost me money to insure.

They're fine as shiny, pretty things to look at but not a great investment IMHO. If you really think gold will go up in price then buy shares in a gold mine. If you think the world's about to devolve into anarchy and lawlessness, buy tins of tuna.

All depends what you plan to do with them. I don't buy to get an income, I buy to cash out into another asset some day when the times right. They probably are worth less what you paid 5-6 years ago but in my opinion by 2020 or before, you'll be glad you held onto them.
Yep I get the mine shares thing but couldn't afford it and I'm happy doing what I'm doing.
Silver's my thing and having family on Guernsey has some nice advantages! :shhh: I love tuna, it's got pretty expensive in the last few years though!