Inversting in Gold?

pinder325

Hello,

I have never invested in anything before in my life. I don't have a lot of money to invest (max £500).

Do you thinking buying a gold bar would be a good investment? If I put the money into a savings account I always end up spending it.

If I bought a £500 gold bar would it be guaranteed to grow in value if I kept it for say 10 years?

Thanks

gardner1

could be more,could be less or could be the same.........my crystal ball wasn't sure

Nothing is guaranteed

TheLastMongoose

What about a fixed term savings account that doesn't allow withdrawals?

sjp999

£500 would get you 2 sovereigns, approx 16 grams of gold and a maybe 30 quid change.

Not really much to look at, if you're looking for a return there are way more better ways of going about it.

pinder325

I was thinking of buying a 10g bar for around £340 to begin with, and then maybe buying more every now and then when I can afford it and try to build up a collection over a few years. You don't think thats a good idea?

Prism

pinder325 wrote: »

I was thinking of buying a 10g bar for around £340 to begin with, and then maybe buying more every now and then when I can afford it and try to build up a collection over a few years. You don't think thats a good idea?

Not particularily. Have a look at gold price over the last 30 years here https://goldprice.org/

It might go up, it might go down. Had you bought gold in 2012 you would have lost a third of it by this point. Had you bought in 2009 it would be up by half. Its a gamble without very good returns.

ColdIron

pinder325 wrote: »

I have never invested in anything before in my life.

Well you're in luck, buying gold isn't really an investment either, it's more akin to speculation

Do you thinking buying a gold bar would be a good investment?

No, it's price is as likely to go down as it is to go up. I you want to get into gold buy bullion coins, they are more liquid so easier trade

If I bought a £500 gold bar would it be guaranteed to grow in value if I kept it for say 10 years?

No

markj113

If you are looking to hold for a while grab a coin with a unique to year design.

Something like an 8g Chinese panda for about £280
https://atkinsonsbullion.com/gold/gold-coins/1-4oz-gold-coins/2016-chinese-panda-8g-gold-coin-second-quality

or a 15g if you wish to max your budget:
https://atkinsonsbullion.com/gold/gold-coins/1-2oz-gold-coins/2018-chinese-panda-15g-gold-coin

Another option would be the Royal Mint Queens Beast series (1/4oz would be in your budget)
https://atkinsonsbullion.com/gold/gold-coins/1-4oz-gold-coins

Chinese panda's will appreciate above and beyond fluctuations in gold spot price

thenewcomer

OP- in short to your question, yes. it is likely to appreciate with time.

but honestly 500 quids is not going to get you a large bar of gold. also have you thought of where you are going to keep the gold? i know most people hide their gold somewhere in their houses, but would you have a piece of mind doing so? i personally cannot, therefore will not invest in physical gold.