Gold SIPP

sargan

 I currently have my pension pot split between Fisher Investment, and a UK Company (Vodafone) 

Separately I have been investing slowly into Gold Bullion  (1oz coins to avoid CGT)  This has way outperformed both pension funds and high-interest savings account, Gold seems on a very good upwards run.

The company I have been buying from are asking me to to consider moving some of my Pension into a Gold SIPP.   Growth is showing as consistently good growth,

Benefits:

- no FA charges

- You can add investment-grade gold bullion to your pension.

- Physical gold is classed as a Tier 1 Asset,  a “zero-risk” asset with a history of growth (3).

- Gold is capital gains tax free and can be passed on with zero inheritance tax (4).

- You can contribute as often or as little as you want.

What is the general thought here on Gold SIPP?

Considering splitting my UK investment – putting 50% of it into a Gold SIPP

This pension will no longer be receiving contributions.

JoeCrystal

I understand that you got £900k across your two private pension schemes. And you seriously consider putting £450k into Gold SIPP? I am somewhat concerned with your lack of understanding of the risk, which is the most diplomatic way I can say.

At the MOST, a percent of your overall pension funds and only for playing around, then maybe. Other than that, you are pretty much unsound regarding this idea.

Albermarle

You you might want to consider that no professional financial advisor would recommend this course of action.
As they could be sued at a later date for recommending an inappropriate investment.

PropertyGuru_Wannabe

Silly idea.  Please research investments yourself and look at the history charts of gold and compare it with other asset classes and factor in inflation.  Don't always rely on others who has vested interests.

Notepad_Phil

sargan said:

 ...Separately I have been investing slowly into Gold Bullion  (1oz coins to avoid CGT)  This has way outperformed both pension funds and high-interest savings account, Gold seems on a very good upwards run.

The company I have been buying from are asking me to to consider moving some of my Pension into a Gold SIPP.   Growth is showing as consistently good growth,.

..

It's not something that I would do or would suggest to anyone else, gold is not a one way sure thing, and if they're showing you information that supposedly shows consistently good growth then they're keeping back the full picture. I'm also not aware of any companies being into both selling gold coins and providing or advising on pensions, so I trust you've had these coins professionally tested? 

cfw1994

Very much amateur here….but with the greatest of respect here, it sounds like crazy talk to me 🤷‍♂️

We have ‘invested’ in some sovereigns over the past 6 years, and yes, their value now is way up on the prices paid….but we are aware they are unlikely to continue that trajectory.  

For us, it was more about leaving some ‘tax free’ cash to the kids….they know where they are hidden 🤣

I certainly wouldn’t bet a big chunk of the pension farm on it.  Again, an amateur here, so take my comments with appropriate seasoning 👍

LHW99

If you already have gold coins and want to add additional gold exposure in your SIPP (I wouldn't personally have more than 5% of mine in gold, preferably (and actually) less) then buy funds that invest in the metal, and / or in gold miners.

There are ETF's (iShares physical gold?) and funds (Black Rock gold & general) - others are available, no risk of scams or thieves, and no holding charges.

dunstonh

 This has way outperformed both pension funds and high-interest savings account, Gold seems on a very good upwards run.

Over what period as Gold hasn't had a great 48 years.   It has obviously spiked at the moment but once the current risk events are out of the way, it will drop again.

15 year gold price is up 226.38% (Sterling) or 155.8% in USD.   
global tracker over same period is up 476.87%

The exchange rates in that period favoured GBP but we know that the exchange rate cycle plays out over the long term and tends to wavy line.  So, expecting continuation for the long term is a high risk and would be unusual.

Any difference in performance in your pension will be down to the risk you are taking.

HappyHarry

sargan said:

 I currently have my pension pot split between Fisher Investment, and a UK Company (Vodafone) 

Separately I have been investing slowly into Gold Bullion  (1oz coins to avoid CGT)  This has way outperformed both pension funds and high-interest savings account, Gold seems on a very good upwards run.

The company I have been buying from are asking me to to consider moving some of my Pension into a Gold SIPP.   Growth is showing as consistently good growth,

Benefits:

- no FA charges

- You can add investment-grade gold bullion to your pension.

- Physical gold is classed as a Tier 1 Asset,  a “zero-risk” asset with a history of growth (3).

- Gold is capital gains tax free and can be passed on with zero inheritance tax (4).

- You can contribute as often or as little as you want.

What is the general thought here on Gold SIPP?

Considering splitting my UK investment – putting 50% of it into a Gold SIPP

This pension will no longer be receiving contributions.

You are being sold to by someone with a vested interest in you buying one  product. I.e. gold.

No (I)FA charges. So what? You can purchase pretty much any asset without paying an (I)FA. However, (I)FAs are not allowed to take commission on sales, whereas gold sellers can. Not many gold sellers will provide ongoing advice except "buy more gold".

Tier 1 asset? Do you know what that is? It means far less than you think and is on par with banking shares.

Zero risk? Oh come on, anyone that claims that is an idiot, and anyone that believes that is more so.

Gold is inheritance tax free? No it is not. Your SIPP may well be, but that is because it is a SIPP and not because it holds gold.

You can contribute as often or as little as you like? Well, as long as you stay within SIPP rules that would apply to most SIPP assets.

Putting  50% of your SIPP into a speculative non-income producing asset is massively high risk. No regulated individual would offer that advice unless your SIPP were very small part of your invested assets.
 

That being said, your current portfolio is off the risk scale. Fisher are extremely high risk but have had a good recent period due to their overweight US tech rising sharply, and your tech exposure is just exacearbated by holding Vodafone.

barnstar2077

Insanity. Your assets are already considerable.  No need to take so many risks.  Invest in a globally diversified fund and go and enjoy your life!  Eventually one of these risky moves will cost you dearly, so quit while you are already ahead! 

Nebulous2

I've one Krugerrand. Given to me in 1976, at my request, on the sale of a family business. It cost £70 and looking at the price today it would cost just over £1900. There have been long periods when it has done nothing, or been in negative territory for years. In 2000 for instance, about halfway in, it would have been worth £186. 

The bank of England inflation calculator tells me my £70 in 1976 would be worth £458 today so it has handsomely beaten inflation. 

However, and due to laziness and being on my phone I haven't found UK figures - 70 dollars in the S&P 500  would be worth over 15000 dollars today with dividends reinvested. 

You're looking at a high risk volatile commodity, which will concentrate your risk, rather than diversify it. 

In addition it is a less-regulated market where charlatans abound. I sincerely hope you are physically holding your coins rather than trusting others to do so.