Gold and Silver advice

masonic

noggin1980 wrote: »

Perhaps in the incredibly unlikely event that the currency system as we know it collapses those with significant gold will be rich (assuming it's not taken from you by force in this probably very scary time), or perhaps people won't actually want to trade for your pretty but with very limited use gold and something else will be much more use for trading just because it was currency in the past doesn't mean it would be again should the world fall to pieces.

Nothing wrong with having a few percent in gold but putting everything in precious metals because there is a minute chance it will make you rich is foolish. You'd be better placed being a doomsday prepper or buying a farm.

I share your scepticism on the value of gold in a serious economic meltdown. I just don't think it would be practical for a gold-based economy to spring up out of nowhere.

Aretnap

puk999 wrote: »

Your second message implies he acquired the shares 30 years ago and sat on them. When owning the shares, he should've been asking himself "if I had the money instead of these shares, would I buy RBS?". If not he should've sold them. Inertia isn't a good reason to have an investment.

OTOH the earliest share price I can find for RBS is 371p in 1991 - pretty close to today's price of 362p. So someone who's been sitting on RBS shares for 30 years or more probably hasn't actually lost money, in cash terms at least. Obviously the buying power of that cash has been eroded by inflation - but factor in the fact that he's also had 30 years worth of dividends and I suspect you'd find that he's actually not done too badly out of them. Not as well as if he'd invested in a diverse range of shares, obviously, but not a total catastrophe either.

Conversely, if you put all your money into precious metals, then watch the price crash you won't even be left with 30 years of dividends to show for your trouble - you'll just have a pretty, shiny paperweight.

bydnas

masonic wrote: »

Really? The providers of physical ETFs appear to claim otherwise.


The same could be said of those buying physical gold that is subsequently stolen. You could argue you would have the insurance to fall back on (if you have the gold insured), but in the former case you could argue that there is FSCS protection to fall back on if the ETF provider claimed to possess assets that turned out to be missing.

What do mean by physical ETF's?

There's 100x + more paper claims than physical metal available. If everyone with SLV ETF's asked for physical delivery very few people would get any metal.
It's in the Comex small print, if they can't make delivery they will settle in cash. Which means they're dealing in something which doesn't exist! It's a joke! The usual suspect banks are also being investigated over rigging and manipulation of the pm markets. As always they'll get a small fine and told to stop it, which they won't!

bydnas

Aretnap wrote: »

OTOH the earliest share price I can find for RBS is 371p in 1991 - pretty close to today's price of 362p. So someone who's been sitting on RBS shares for 30 years or more probably hasn't actually lost money, in cash terms at least. Obviously the buying power of that cash has been eroded by inflation - but factor in the fact that he's also had 30 years worth of dividends and I suspect you'd find that he's actually not done too badly out of them. Not as well as if he'd invested in a diverse range of shares, obviously, but not a total catastrophe either.

Conversely, if you put all your money into precious metals, then watch the price crash you won't even be left with 30 years of dividends to show for your trouble - you'll just have a pretty, shiny paperweight.

It was something he paid into every month for 30 years. Not just 30 year old shares he's been sitting on.

masonic

bydnas wrote: »

What do mean by physical ETF's?

There's 100x + more paper claims than physical metal available. If everyone with SLV ETF's asked for physical delivery very few people would get any metal.
It's in the Comex small print, if they can't make delivery they will settle in cash. Which means they're dealing in something which doesn't exist! It's a joke! The usual suspect banks are also being investigated over rigging and manipulation of the pm markets. As always they'll get a small fine and told to stop it, which they won't!

There are synthetic ones and physical ones and some that make use of a bit of both. For the physical variety, in the words of one provider "Each physical bar is segregated, individually identified and allocated" and "ETCs cannot be issued until the bullion is delivered to the Custodian's vault".

puk999

At the moment I sell on amazon uk and on my ecommerce site, Am I cheaper than most bullion dealers? Not on amazon no (although I am cheaper than all other sellers on amazon), but amazon is a very safe place to buy from and some people prefer to pay a little extra, knowing that their purchase is protected. Am I cheaper than most bullion dealers when I sell direct? Often yes.

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