Anyone know about investing in Gold, after advice

happyhero

Hi I am into investing, i.e. I have several shares and funds and trade regularly and do ok but I’m not a professional at it. I’m 55 and trying to grow my investments into something I can either use as part of my retirement or to be able to do things that I otherwise couldn’t afford in my retirement.


I would like to get into gold now as part of my portfolio but can any seasoned gold dealers offer any guidance it would be nice to be able to benefit from others with more experience in this?


At the moment after lots of reading I am looking at buying from BullionByPost as they seem good for this, competitive etc. and I’m looking at maybe starting with about £1000 so I’m looking at buying 4 x Gold sovereigns at a current price of £216 each but then I saw £2 Sovereign and a £5, in fact they have many coins, why is that?


What one should I go for and why?


Is this company the best?


They buy and sell and I’ve noticed the spread is about 6% which is a little larger than I would like and fairly big compared to shares I would normally buy but at the same time its not that bad, i.e. workable, some shares have a 6% spread.


Can you offer any advice please, which coins to buy etc and from where?

markj113

I highly recommend the below dealers.

Cheaper and great service :

http://www.hattongardenmetals.com/buy/cid0/all-stock
http://atkinsonsbullion.com/
http://www.goldline.co.uk/goldsavers.page

Dont forget to factor in shipping prices when comparing costs, Atkinsons inc. shipping in the prices quoted, the other 2 dealers charge Royal Mail special delivery prices.


As for choice, if you are planning to buy a lot then sovereigns and Britannias are capital gains tax free.

If you are not planning on spending a fortune go for semi numi coins like chinese pandas or perth mint lunar series (they have an additional premium from a collectors point of view that grows over time above and beyond gold spot price)

masonic

A physical gold ETF would be a simpler option to get some exposure.

happyhero

Why are they cheaper if they are pre-owned?

markj113

happyhero wrote: »

Why are they cheaper if they are pre-owned?

Because some people are fussy and want brand new. I have bought a lot of pre owned gold. It has been tested as genuine by the dealer so not a problem.

My 1 concern was if I were buying expensive proof coins I would want to ensure the coins had not been handled previously ruining the finish and they had remained in their protective capsules.

masonic wrote: »

A physical gold ETF would be a simpler option to get some exposure.

I prefer to stick to the "if you dont hold it you dont own it" mentality when it comes to gold.

markj113

p.s. have a look at the 2016 Chinese gold panda.

Its the first year the chinese have moved from the traditional "troy oz" 31.1g measure over the metric system.

This change could result in the coin becoming a key year in the future resulting in it appreciating greater in price. I have the 30g coin myself and the minting quality is superb.

http://atkinsonsbullion.com/gold/gold-coins?sort=Please%20Select&quantity=24&page=1&view=grid&filter_brand=brand_centralmintofchina

** if you order it do not remove the coin from the plastic mint packaging square **

masonic

markj113 wrote: »

I prefer to stick to the "if you dont hold it you dont own it" mentality when it comes to gold.

Crooning, "My precious", while holding it, presumably

ColdIron

I am keen on gold but don't kid myself that it's an investment, it's more akin to speculation

Gold is a store of wealth and a hedge against inflation but doesn't pay dividends and unlike a good investment, where you could have a reasonable expectation of an increase in value, gold could go either way

Other than that I'd echo markj113's dealer recommendations and choice of pandas and lunar series coins. Just be clear on why you are buying gold, I wouldn't bet my retirement on it

atush

If you want to Grow your money why gold? Sure, it can be a place to put some money in hard times, but it does not give a good return, so is not a retirement bet IMHO. It basically doesnt grow.

It doest do anything, and has no yield/income. It can rise and fall in price, but to my mind, is still too expensive.

Dont get me wrong, I own gold. But I bought it when no one wanted to own it.

But still too pricy for me to buy any now.

DiggerUK

Gold hit a peak of £1182.82 on 6th September 2011. If you were to have bought an ounce at the average of the am and pm fix on the 6th of each month since, your average cost per Troy ounce would have been £887.47.
The average price of the fixes for last Monday was £895.95. Not in clear water yet, but a possible guide as to what to do for the best going forward. http://www.lbma.org.uk/pricing-and-statistics

Oh, and the spot price closed at £868.91 on Friday, oops. Take care, but go for it
http://goldprice.org

Have used http://elminvestments.co.uk/gold-coins.html.
+1 for Atkinsons........avoid Bullion by Post, never best value..._

atush

Still far too pricy, and I price it in USD, not GBP.