Gold

jamesd

If you want protection from domestic inflation ensure that lots of your invested money is invested outside the UK so its value will go up if the value of the Pound goes down. On the opposite end of things, I used a currency hedged global tracker after brexit so that I'd be protected from the anticipated by me rise in the value of the Pound and that worked out nicely, increasing my global tracker net gain.

Secret2ndAccount

Sandtree said:

Secret2ndAccount said:

If I invest in the stock of a company, and I choose wisely, there are many opportunities for growth. The company can use my investment to build a new factory, or hire better designers or marketing people. They can find efficiencies and make their widgets more cheaply. They can acquire more users of their product, or increase what they charge for it.

That depends on the origin of the shares you are buying, in most cases the shares will be being sold by the current holder and not the company itself so buying £10,000 of shares in a water company could well mean that £10k goes to an insurance company thats selling off some of its holdings to adjust its portfolio. 

That £10k will just be a liquidity consideration though as the £10k would have already been on its balance sheet at fair market value and so its not actually gained anything other than possibly releasing a small amount of market risk capital it was holding.

If you want the idea of helping out the company itself then only consider new issue shares or bonds

I realise I'm not handing a cheque to the CEO. By buying a stock (whoever you buy it from), you push the price up, which gives them more choices - for example to borrow money, as the higher share price gives them more collateral, or to pay down debt by selling their shares at a good price. A poor share price puts the squeeze to a company. People start demanding change from the board, and they get distracted with defending themselves and making concessions rather than freely doing what's best for the company.

Secret2ndAccount

jamesd said:

If you want protection from domestic inflation ensure that lots of your invested money is invested outside the UK so its value will go up if the value of the Pound goes down. On the opposite end of things, I used a currency hedged global tracker after brexit so that I'd be protected from the anticipated by me rise in the value of the Pound and that worked out nicely, increasing my global tracker net gain.

Yeah, I'm globally invested, overweight USA, but I think inflation is and will be just as bad in the States as in UK. I have a fair bit in property one way or another, and that could be as good a hedge as I have found yet.

What about spending? I have a couple of big purchases I'm mulling. Buying now protects me against inflation or a stock market crash.

jamesd

It's possible to try to be underweight in the US and still do quite well,  I've been deliberately underweight the US for a few years now, meaning lower than usual global large cap equity tracker holding. I favoured global small caps, UK, far east and Europe with my high small cap weighting getting me comparable performance anyway.

If the spending is necessary just get on with it. If not necessary but likely to be needed in the next couple of years and it's on durable things then it's comparable to a bit of a nudge towards cash and can also be fine. Definitely is if it's within your SWR limit. If outside you could always deduct the spend from capital and recalculate your SWR.

The biggest issue with SWRs tends to be underspending so a little generosity to yourself isn't likely to be a bad thing if virtually amortised over the long term.

Secret2ndAccount

I am deliberately overweight USA. They have a massive stimulus program which should prop up equities for at least another year. There will be a large bill for US taxpayers down the road, but from my point of view it’s like a free subsidy. USA has the most business-friendly regulatory environment, plus a large, wealthy, mostly homogeneous local market. It’s easy for a business to grow there, and of course, they have all the global megacaps now.

Europe is potentially a richer marketplace, but they will never be able to get themselves all pulling in the same direction, and are not as pro-business as North America.

China has more people, but they are not all very wealthy. Also the regulatory environment is far less pro-capitalism. The state has plans for world domination, but Chinese equities don't seem to be the way to invest in that.

India has most of the pieces of the jigsaw, but they would have to execute perfectly for 50-100 years to get to no. 1

So it’s USA in top spot for the foreseeable future. They will have inflaton for a few years, but I don’t see that hurting the $ vs sterling to an extent that damages my portfolio. There is $5 trillion in cash, sitting in trading accounts in USA. Presumably a large chunk of this is waiting for a pullback, so if a correction does occur, it’s a buying opportunity. There will be a flood of buyers, and it will get uncorrected swiftly. My retirement plans don’t depend on that, but I remain optimistic.

german_keeper

Secret2ndAccount said:

I am deliberately overweight USA. 

I am undeliberately overweight but fortunately not to USA standards!

RD42

davemere said:

This is all really interesting.

What's the best place to a actually buy gold? Is it the mint? And how is that done, do you travel to London or can the gold be couriered?

Also coins are exempt from Capital Gains right - but bars and bullion are not?

thank you!

I have purchased from the following over the last 15 years:

https://www.bairdmint.com/
https://atkinsonsbullion.com/
https://www.bullionbypost.co.uk/

• Reliable with good rates, delivery by post courier
• Sovereigns and Britannia coins are the main ones to consider for CGT free investment (the Atkinson's site has a filter for CGT free coins)

For a 2021 Britannia 1oz Gold Coin:

• Baird: £1,363 (+Delivery)
• Atkinsons: £1,363 (Including delivery)
• Bullion By Post: £1,403 (Including delivery)

Hope this helps.

[Deleted User]

People buying physical gold - have you accounted for the cost of proper storage and insurance?

Nurse2047

https://www.royalmint.com/digital-investments/little-treasures/

Didn’t realise you can buy digital gold

Albermarle

MFW2026 said:

https://www.royalmint.com/digital-investments/little-treasures/

Didn’t realise you can buy digital gold

I was vaguely aware but thanks for the link.
Charges are 0.33% to buy - 0.5% + Vat annual fee , then 1 % to sell.

You can buy a Gold ETF , with an ongoing fee around 0.3% to 0.4% .
£10 ( ish ) to buy and sell 
Platform fees depend on the platform but on the right one they could be negligible .

So the digital gold from the Royal Mint would be better for smaller amounts , smaller regular purchases.
The ETF better for lump sum purchases of larger amounts .

Unless I am missing something ?

Maybe the digital gold from Royal Mint is safer/more secure than an ETF ?I would have thought if it was an I shares or Wisdom Tree ETF it should be OK ?