Best way to buy gold?

masonic

Charges on the Wisdomtree ETC are higher than the iShares ETC. The iShares fund is domiciled in Ireland, so is now available from a UK market broker as a CDI, whereas Jersey domiciled PHGP can be held directly. I wouldn't have any concerns about holding CDIs vs shares (and hold several Ireland domiciled ETFs), but I recall it was a concern for one person in particular.

tranquility1

Does anyone here own "gold miners"? I keep hearing this come up. I assume it's shares in companies which mine gold. Any which you'd recommend? 

Sue58

tranquility1 said:

Does anyone here own "gold miners"? I keep hearing this come up. I assume it's shares in companies which mine gold. Any which you'd recommend? 

I hold Polymetal (POLY) and Fresnillo (FRES).

IMO the current share price for both is at a very reasonable level so not a bad time to invest. Poly has a great yield at around 6 per cent. Fres is considered more volatile than Poly.

tranquility1

Sue58 said:

tranquility1 said:

Does anyone here own "gold miners"? I keep hearing this come up. I assume it's shares in companies which mine gold. Any which you'd recommend? 

I hold Polymetal (POLY) and Fresnillo (FRES).

IMO the current share price for both is at a very reasonable level so not a bad time to invest. Poly has a great yield at around 6 per cent. Fres is considered more volatile than Poly.

Thank you for that.  I've seen these mentioned before on here, but I wasn't aware what they were.  I'll have a read about them.

tranquility1

bugbyte_2 said:

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. 

3% isn't too bad.  Thank you for suggesting Atkinsons Bullion, which I hadn't heard of before.  They do appear to be a bit cheaper than Bullion by Post, at first glance.

Yes, I can see on the charts that gold has kept it's high since 2020.  My view is that the price may go up further as and when the economy and stock market hit the skids, and I fear that day is approaching.  Hence my interest in gold.

I think I will buy the real thing, but also keep my Gold ETC.  

bugbyte_2

Atkinsons also have a physical shop in Sutton Coldfield which is useful to know. Good luck whatever you do!

lifemagic

To answer op's question, an ETF is the best way to hold any significant amount. Most, even on the London stock exchange, are in USD meaning you're gambling on the usd/gbp exchange rate as well as the gold price. The answer is to buy one hedged to pound sterling.

I would recommend the GBP hedged one from Invesco, on the London stock market, ticker SGLS. Backed by physical gold and a fee of 0.3%, in comparison to the more expensive one by Wisdomtree ticker GBSP charging 0.6%.

tranquility1

lifemagic said:

To answer op's question, an ETF is the best way to hold any significant amount. Most, even on the London stock exchange, are in USD meaning you're gambling on the usd/gbp exchange rate as well as the gold price. The answer is to buy one hedged to pound sterling.

I would recommend the GBP hedged one from Invesco, on the London stock market, ticker SGLS. Backed by physical gold and a fee of 0.3%, in comparison to the more expensive one by Wisdomtree ticker GBSP charging 0.6%.

iWeb don't appear to do that fund, which is typical. 

tranquility1

lifemagic said:

To answer op's question, an ETF is the best way to hold any significant amount. Most, even on the London stock exchange, are in USD meaning you're gambling on the usd/gbp exchange rate as well as the gold price. The answer is to buy one hedged to pound sterling.

I would recommend the GBP hedged one from Invesco, on the London stock market, ticker SGLS. Backed by physical gold and a fee of 0.3%, in comparison to the more expensive one by Wisdomtree ticker GBSP charging 0.6%.

Having looked into it a bit, I think iShares gold/silver ETCs are actually in GBP/GBX, rather than USD.

coastline

tranquility1 said:

lifemagic said:

To answer op's question, an ETF is the best way to hold any significant amount. Most, even on the London stock exchange, are in USD meaning you're gambling on the usd/gbp exchange rate as well as the gold price. The answer is to buy one hedged to pound sterling.

I would recommend the GBP hedged one from Invesco, on the London stock market, ticker SGLS. Backed by physical gold and a fee of 0.3%, in comparison to the more expensive one by Wisdomtree ticker GBSP charging 0.6%.

Having looked into it a bit, I think iShares gold/silver ETCs are actually in GBP/GBX, rather than USD.

Handy site for ETF's.

ETF portfolios made simple | justETF

Comparison, Market Cap, Physically backed , Domicile.

Top Gold ETFs/ETCs | Find The Best Gold ETF/ETC | justETF