Best way to buy gold?

BananaRepublic

Type_45 said:

The new financial system which is being brought in soon will replace fiat.

Unlike fiat, the new currency will either be based on SDRs (digital currency) or gold. 

If it's the latter, then you can expect the price of gold to appreciate considerably.

Of course that information is not being spread by people who have already invested in gold in order to drive the price up. No, nooo, noooo, God forbid that should ever happen. 

The gold standard went the way of the dodo a long time ago. It’s not pining for the fyords. 

As an aside, you post a lot of threads that suggest considerable financial naivety. I hope you’re not placing large bets on these dead certs. 

Type_45

BananaRepublic said:

Type_45 said:

The new financial system which is being brought in soon will replace fiat.

Unlike fiat, the new currency will either be based on SDRs (digital currency) or gold. 

If it's the latter, then you can expect the price of gold to appreciate considerably.

Of course that information is not being spread by people who have already invested in gold in order to drive the price up. No, nooo, noooo, God forbid that should ever happen. 

The gold standard went the way of the dodo a long time ago. It’s not pining for the fyords. 

As an aside, you post a lot of threads that suggest considerable financial naivety. I hope you’re not placing large bets on these dead certs. 

My investments are my house, my VLS100 and my sub £2000 in bitcoin.

I have no other investments. But I am interested in gold, possibly.

tranquility1

The problem with gold is getting ripped off when you buy/sell.  eg:

Let's say you want to wealth-preserve £20,000 into gold using Bullion by Post.  This will buy you 61 gold sovereigns at £325.60 = £19,861.60.

But if you then immediately wanted to sell them back to Bullion by Post they would only give you £294.47 per sovereign x 61 sovereigns which you bought = £17,962.67


So you've made a paper loss of £1,898.93 just by converting cash to gold, assuming the price of gold stays the same.



That's not an attractive deal.

ColdIron

So don't do it, few people would buy and then immediately sell anyway

A bid offer spread is very common with investments, do you think shares are any different? It's the same in other industries. Do you suppose Tesco buy from farmers etc at the same price that they sell to you in their stores?

Few people work for nothing

tranquility1

ColdIron said:

So don't do it, few people would buy and then immediately sell anyway

A bid offer spread is very common with investments, do you think shares are any different? It's the same in other industries. Do you suppose Tesco buy from farmers etc at the same price that they sell to you in their stores?

Few people work for nothing

Yeah I get that. It would just hurt my eyes on my finance spreadsheet the next day to see my assets almost £2k down overnight. But I guess the flip side would be that the price may go up and also that I own the metal even if the whole system collapses.

tranquility1

Other than BlackRock and iWeb collapsing (those are who I use in my ISA), is there any reason to buy actual gold rather than have iShares physical gold ETC?

ColdIron

So you can sew it into your lapels or pop it in your turn ups when zee Germans come

But seriously, physical possession has some advantages, not least being that you can get to it at any time regardless of circumstances. No custody fees either

tranquility1

I use iShares Physical Gold, and iShares Physical Silver.

My platform is iWeb.



I understand that there are better performing gold/silver ETFs/ETCs.   But they don't seem to be available on iweb.  

Of particular interest to me is the Royal Mint Gold ETF.



Does anyone else invest in gold on iWeb and have any suggestions?   Or are the iShares Physical gold/silver ETCs the best I can do (or at least, are they good enough?)

bugbyte_2

You can buy physical gold with approx. 3% spread (1oz Krugerrand buys at about £1340 and sells at £1300) at Atkinsons Bullion. As previously stated elsewhere on this forum I have a 4% holding in Gold but hold it for a very specific reason -

On retirement I am planning to take 4% out of my portfolio each year, and if there was a bad year where stocks were down then I would sell my 4% gold instead which appears to have a negative correlation with stock prices. This would of course have the advantage of giving my stocks a year to recover and means I do not have to sell in a dip. In essence I use Gold (and a years worth of cash in Premium Bonds) as a hedge against negative stock price deviations.

That said IMHO gold is expensive against historical values at the moment due to a price spike which has yet to come down from last year's Covid inspired crash. 

Thrugelmir

Another option is 

WISDOMTREE PHYSICAL GOLD (GBP) (PHGP)

HSBC are the custodians.