Gold ?

cloud_dog

shaun_from_Africa wrote: »

Your first comment is incorrect and could well explain why you lost out on your physical gold & silver.
When you buy from a dealer you pay a premium on the price of the gold (this varies depending on what is bought) but when you sell to a reputable dealer, they should pay you whatever the spot price for the gold is at the time of the transaction.

I will use the place that you linked to in your post as an example.
The current spot price for gold is £756.38 per ounce and if you were to sell a 1 ounce coin to Coininvest, they would pay you £756.88 (This is for a 1 oz Krugerrand. For some coins they pay slightly more).

I'm not saying or implying that bullion is a good purchase for anyone, simply making sure that the correct facts are posted for those that are considering it.

It's like all markets, the price you get is what someone is willing to pay. The fact that a bit of something has a listed price of X doesn't mean you will get X.

EDIT: This was meant for puk999

jimjames

cloud_dog wrote: »

Soooo, why are you considering it?

Guess it's one of those times that we'll never know or hear back again from the OP.

Flobberchops wrote: »

I hear people citing a "shtf" moment as a good reason to buy precious metals, but in my opinion owning a whacking great bar of gold would only serve to draw attention and make you a target in a post-apocalyptic situation. Maybe buy a roll of gold Sovereigns if you want to feel like James Bond, and keep most of your money in cash and equities?

I do wonder what effective use it may be in such a situation. If it really was Armageddon then I don't know if people would want to exchange food for a shiny bar of metal with no use. You're probably better of stockpiling tinned food or such like.

puk999

shaun_from_Africa wrote: »

Your first comment is incorrect and could well explain why you lost out on your physical gold & silver.
When you buy from a dealer you pay a premium on the price of the gold (this varies depending on what is bought) but when you sell to a reputable dealer, they should pay you whatever the spot price for the gold is at the time of the transaction.

I will use the place that you linked to in your post as an example.
The current spot price for gold is £756.38 per ounce and if you were to sell a 1 ounce coin to Coininvest, they would pay you £756.88 (This is for a 1 oz Krugerrand. For some coins they pay slightly more).

I'm not saying or implying that bullion is a good purchase for anyone, simply making sure that the correct facts are posted for those that are considering it.

I had assumed that CoinInvest would repurchase at less than spot. I've checked, and you're right; they will repurchase that Kruggerand for about £753 which by my calculation is about £3 within spot price. Spot price for a Kruggerand could still be considered "low", could it not?

My original comment "a big downside will be the low price you'll be selling at if you're selling to a dealer" was woolly.The gist is that if you purchased from a dealer, then resold to that dealer while the underlying price of gold remained static, you'd lose money. You lose money on the dealer premium at purchase time. You lose money on P+P to receive the gold. When you resell you incur P+P to send the item insured. In this case to Germany. If after inspection the dealer doesn't want to purchase, you have to pay P+P to get the item back to you.

Contrast the above to holding a fund on a platform which you can purchase and sell without the cost of premiums, P+P, physical involvement.

SailorSam

Don't forget if you buy coins you have to pay VAT, whereas gold bars you don't ...............
(Or is it the other way around) ?

bradztheman

cloud_dog wrote: »

Soooo, why are you considering it?

Like i said, gold prices have been on the rise for many years now, and it stops me withdrawing any savings from the bank. Something to also admire from time to time. Sounds sad but its true

bradztheman

Someone mentioned https://www.bullionbypost.co.uk

They have 1 oz umicore gold bars at £787. If you sell it back to them they pay 98% spot price (price you originally paid) from them.

bradztheman

I expect that price will rise to around £825 by this time next year

cloud_dog

bradztheman wrote: »

Like i said, gold prices have been on the rise for many years now.....

Well, it's been declining for the last 4 years (from approx £1100 to £750).

bradztheman wrote: »

....and it stops me withdrawing any savings from the bank.

So, put your cash in to a fixed term account (or across a number of different term accounts).

If you like the look of the shiny stuff then go ahead and buy some coins but do not do it as financial adventure. I like gold, have invested in it in the past and hold some physical (mostly as a an old style way of retaining some wealth; nothing more nothing less).

bradztheman

Good point, here is a bar chart of how prices have gone over past 20 years
https://www.bullionvault.com/gold-price-chart.do

So now is a good time to buy right, or keep waiting for it to decline? Thats the gamble

cloud_dog

bradztheman wrote: »

Thats the gamble

No, the gamble is why gold?

From starting off with 'I know nothing' to looking at the price activity over 20 years (in the wrong currency; USD mean nothing to you.... you need to see it in GBP).

I still don't understand.... Why gold?

Are you going from money in the bank to gold without anything else? What other savings / investments do you have?