My financial advisor has told me to buy gold

robaber

Hi

I recently had a free consultation with a Financial Advisor. We discussed my emergency fund. 

To my surprise, he suggested 90% be in cash and 10%, be in gold. He suggested I buy a home safe and gold coins e.g. sovereigns. 

I was very surprised as I don't have any gold, thinking it a wasting asset. It will cost me to hold it and it doesn't provide an income. It is also less liquid than cash. 

What do others think?

Type_45

robaber said:

Hi

I recently had a free consultation with a Financial Advisor. We discussed my emergency fund. 

To my surprise, he suggested 90% be in cash and 10%, be in gold. He suggested I buy a home safe and gold coins e.g. sovereigns. 

I was very surprised as I don't have any gold, thinking it a wasting asset. It will cost me to hold it and it doesn't provide an income. It is also less liquid than cash. 

What do others think?

What were his reasons?

dunstonh

We discussed my emergency fund. 
<snip>
To my surprise, he suggested 90% be in cash and 10%, be in gold.

The 10% in gold is a bit of a surprise but it depends on the size of your emergency fund.

Apodemus

robaber said:

Hi

I recently had a free consultation with a Financial Advisor.  

What do others think?

...that you probably got what you paid for! 

Sg28

I wouldn't keep any emergency fund in gold. Unless the emergency you're planning for is total economic and societal collapse. 

I have 25 gold sovereigns as a long term investment and also because I like coins and I think they're nice to have. 

Dont bother with a safe either. Not point showing the burglars exactly were all your valuables are kept. 

Type_45

Sg28 said:

I wouldn't keep any emergency fund in gold. Unless the emergency you're planning for is total economic and societal collapse. 

I have 25 gold sovereigns as a long term investment and also because I like coins and I think they're nice to have. 

Dont bother with a safe either. Not point showing the burglars exactly were all your valuables are kept. 

Gold will perform in a currency collapse. Gold had kept its purchasing power for thousands of years. An ounce of the yellow stuff could have bought you an expensive suit at any point in history. Still true at today's price of £1,500.

How are the GBP and Euro looking to you right now?

Bigwheels1111

I was looking at getting 10 or 20 Britannia 1oz gold coins a few months ago.

Looked at Tavex Bullion, as they sell them at about £50 more than the coin is worth.
They but back at 0.03% I think it was.
I decided not to at the moment as the price is almost at its highest in the last 10 years.
When the war end and fuel prices go down so will the gold price.

RolandFlagg

You can fondle the gold, but it will not respond - Warren Buffett.

Albermarle

It is cheaper and easier to buy a gold ETF, rather than the real thing.

HappyHarry

robaber said:

Hi

I recently had a free consultation with a Financial Advisor. We discussed my emergency fund. 

To my surprise, he suggested 90% be in cash and 10%, be in gold. He suggested I buy a home safe and gold coins e.g. sovereigns. 

I was very surprised as I don't have any gold, thinking it a wasting asset. It will cost me to hold it and it doesn't provide an income. It is also less liquid than cash. 

What do others think?

I would always suggest that an emergency fund is 100% cash deposit.

Any gold holding would be part of the client’s investment portfolio, and I would not count it as part of an emergency fund.

I haven’t heard of any adviser recommending part of an emergency fund being held in gold, until now.

DoublePolaroid

You never know when you might need to bribe a dragon.

On the question of a safe, presumably using one would be a pre-requisite for insuring the coins for most if not all insurers who would take on the risk. Whilst this is obviously not necessary if you forego insurance, that’s just another reason to use an ETF and not buy physical gold.

I have a safe but since I sold my watch collection it’s empty save for a little note inside which reads “Ha Ha!”