Buying gold from online sites

frenchplonka

Hi guys just a really super quick question I'm looking to buy some ACTUAL gold nothing massive just something that ideally holds a value that I cant spend for a year or so.

I know of the normal site royal mint etc what i'm wondering is do said sites charge a premium for there services Ie if i wanted to by a standard gold bar say it sets me back $50 on there is there a mark up that's built into that price say when I go to sell next year and gold prices stay exactly the same that I'm likely to lose out after fees for selling.

If so what do you suggest to someone who wants to hold a small amount of gold built up over a period of a year with a total value of around 5k knowing that that asset will be liquidated within a year or so.

ColdIron

These sites are reputable

http://www.goldline.co.uk
http://www.hattongardenmetals.com/buy/
https://atkinsonsbullion.com/
https://www.bullionbypost.co.uk/

I'd avoid bars, stick to coins. There's no VAT and UK coins (Sovereigns or Britannias) are free of CGT but that probably won't be worry for you. You will pay a small premium when you buy and sell, maybe up to 5% on small amounts

However buying small amounts over a year and then selling is bonkers, you're very likely to lose money. Why are you buying gold in the first place? If you are speculating on the price buy it in one go and hope for the best. There are good reasons to buy gold but this isn't one of them

Malthusian

I would suggest don't do it. Gold is entirely an unsuitable investment for a year, as is any volatile asset.

Gold has been known to lose 40% of its value in a single year. If you left it in cash, lost self-control and spent 40% of the money then at least you'd've enjoyed whatever you'd spent the 40% on.

And you are proposing to buy a physical gold bar so you risk losing 100% if your house is burgled.

If you must lock the money away for a year to stop yourself spending it then put it in a one-year fixed-rate FSCS-protected cash deposit. But this kind of financial management, like "self-banning" from bookmakers, is rather pointless. If you're capable of putting your money in a one-year fixed rate bond then you're capable of not spending the money by your own free choice. If you're not, then what's going to stop you splurging your entire "windfall" when the bond matures?

Gold doesn't even meet your objective because you can cash in the gold at any time. You can take your gold bar into any pawnshop and then go straight down the bookies next door.

Yes, there is a markup. How much it is depends on how much you are buying and the site.

DiggerUK

Put it in Premium Bonds for the time you are talking about. Far too short to be sure of the return of all your capital in a year. Could make a fortune of course, but speculation with gold is a fools game.

Treat gold with the same respect you would lifeboats on a ship, might never need to use them, but a must have when cruising.
Gold is great for long term savings, such as retirement plans, but not as you propose.

Add Elm Investments to previous best buy. Not an online outfit, old school phone and cheque operation..._
http://www.elminvestments.co.uk/gold-coins.html

Malthusian

OP, if you read up on previous gold threads, you'll see that if even Diggy is telling you not to buy gold, then you definitely shouldn't buy gold.

DiggerUK

Malthusian wrote: »

OP, if you read up on previous gold threads, you'll see that if even Diggy is telling you not to buy gold, then you definitely shouldn't buy gold.

frenchplonka, I don’t regard myself as MSE’s resident expert on gold without just cause, I have testimonials of support..._