Gold and silver advice

jimjames

baldhippy wrote: »

Thank you James, i don't even know what a gold ramper is. But to answer your question i am merely someone who would like a way to store some cash with the chance of it going up in value in the future. I am not a serious investor but find it hard to store cash without dipping into it so was thinking this might be an option for me. I am quite aware that there are no guarantees in anything but had heard it mentioned that gold tends to hold it's purchasing power over the years. Hope that helps. As i said i was merely asking for peoples opinions that's all. I certainly had not come here to fall out with anyone.

Over the last few years gold hasn't held it's purchasing power. It also pays no income. In summary, it's not a one way bet and you can lose money.

Shares on the other hand can pay around 4% for an income fund and long term have not only kept up but beaten inflation.

masonic

baldhippy wrote: »

Thank you James, i don't even know what a gold ramper is. But to answer your question i am merely someone who would like a way to store some cash with the chance of it going up in value in the future. I am not a serious investor but find it hard to store cash without dipping into it so was thinking this might be an option for me. I am quite aware that there are no guarantees in anything but had heard it mentioned that gold tends to hold it's purchasing power over the years. Hope that helps. As i said i was merely asking for peoples opinions that's all. I certainly had not come here to fall out with anyone.

Gold is a very poor substitute for cash as it is extremely volatile. Why not lock your money away in a fixed term account if self-discipline is a problem?

Presumably, the fact you find it hard to store cash without dipping into it means that you don't have much of an emergency fund.

baldhippy

Thank you James, i have to confess i really would not know where to start with investing in shares. In fact the thought of it scares me quite a bit. Is an income fund someone like me who know's nothing about the stock market could easily invest in? Maybe you could point me towards a site that explains how to do that so i could look at it please?

baldhippy

Hello masonic, you are quite right about me not having an emergency fund. It is something i am working on, i am just looking at the various options at the moment which is why i am here seeking a bit of advice.Thank you for the reply.

masonic

baldhippy wrote: »

Hello masonic, you are quite right about me not having an emergency fund. It is something i am working on, i am just looking at the various options at the moment which is why i am here seeking a bit of advice.Thank you for the reply.

In that case, I'd suggest you shouldn't consider any sort of risk-based investment without building up a few months living expenses in cash first. Once you've addressed that, http://monevator.com/asset-allocation-types/ is a good place to start.

baldhippy

Thank you masonic, that is good advice, i will look at the link you have provided. Now who wants to buy some gold coins. Only joking.

DiggerUK

Gold is the marmite of this thread. And jimjames is right about some of the gold bugs who troll the subject. The silver loons are infinitely worse.

So now your wondering what a gold bug and a silver loon is. Hang around I'm sure they will be around soon. Easily spotted because they're 32 grammes short of an ounce.

If your time frame to hold gold is a bare minimum of 5 years, then I'd say yes. The percentage of your assets you hold will depend on many factors. We are near retirement with no debts, so upwards of 80% is our average.
Some here will say nothing, most will suggest 10%ish.

Moneyweek, Daily Mail, and Daily Telegrah all have good guides for newbies, check them out.

We really are quite a friendly bunch.

baldhippy

Not sure if i dare ask this one for fear of starting a war, but i get the impression that silver investing would be complete and utter madness, could someone explain why that is please. I did once see a you tube video that said silver is going to become scarce in the future. If that is true would that not mean the price would go up or am i falling into a trap with that thinking.

masonic

powerwin wrote: »

To learn about investment in general, these <snipped affiliate marketing site> resources should help you improve your knowledge.

Posting that link once was suspicious, but posting it in two threads in quick succession suggests you are advertising.

DiggerUK

baldhippy wrote: »

.....I get the impression that silver investing would be complete and utter madness...........

Most silver production goes in to manufactured products, only a small percentage of gold (1/8) goes the same way.
Gold is an internationally traded currency, and is traded alongside foreign exchange currencies.
Economic ups and downs affect the two metals differently.

The stories of imminent world shortages of silver are mainly pushed by those who mine, smelt, refine, and sell silver. They are also unsubstantiated.
You also have to pay vat on silver. Gold is vat free, and cgt free if UK legal tender..._