Gold SIPP

kempiejon

Investing, specifically for a pension should take a pragmatic long term view. A few millennia ago advice was to divide wealth into thirds, with equal portions in property, business and reserves, building your overall asset allocation strategy, you have to start with a base mix of assets that are not well correlated. Now, what a Rabbi told his flock in ancient Egypt might not be the best advice but it's not done badly. There's loads of research to back it up. Is there a place for gold? Well not half of your SIPP but for experienced investors looking at asset allocation it has a place. I have been adding small amounts since 2018, not a bad investment for me. Coins part of estate planning and ETCs for portfolio ballast.
Gold is a good reserve, look at the price over 5 years and it's outstripped the UK FTSE100. 12 months has been a better bet than a global tracker. Over 10 year and 20 years the S&P vrs Gold have swapped places.

DonSmith

leosayer said:

I'm not saying this is the case here but I've seen other forum posts follow a similar pattern with an OP lining up a question including reference to gold / bitcoin etc. to be followed by a series of posts from new posters talking about how they're a perfect solution to the upcoming economic apocalypse.

Yeah, I can understand this but why would I have taken so long to post myself, and I have nothing to gain from this and have not promoted any business in any way.

I am just majorly concerned to where we are heading economically and politically, and when I say we and mean my fellow Brit. I could have ignored this thread and continued to make the decisions which I believe will protect myself, my family and friends, but the reality is the prosperity of the society which I live in directly effects the life and wellbeing of my children, and their children.

The post was intended to inform more than scare but to be honest I am scared of where we could be heading, thankfully a little less so since I have taken the steps which I have done recently.

I took time to construct the post with facts and figures and omitted opinion as much as I can so others could verify and come to their own conclusions.

There is a lot of great content out there giving fantastic and compelling insight to all of this which you will never see in the MSM. If anyone wishes for recommendations I am happy to help.

DonSmith

vacheron said:

Moonwolf said:

grumpsthegit said:

Wow that post by DonSmith scared the crap out of me - it seems well thought through and worded so could there be something in this? 

No.  If you are genuinely worried about an apocalypse then tins of beans kept dry at 4C will be much more valuable and perhaps a bunker.  You might find a tinfoil hat helpful as well.

In the event of a collapse of a paper money economy (local or global), you need to have the physical asset you are relying on in your hand, and that asset own has to have worth (or at least perceived worth) to the buyer at that exact moment in time. Even gold is worthless compared to food if you are starving to death.

This is why, if I was ever to hold any substantial amount of gold, I would want it in my physical posession.
I doubt the father of the the Family would have been paying 20 Zlotys for a share in a fund which probably holds a derivative based on some hypothetical caramel that may be physically held by someone else in a vault in Singapore!

This is a fantastic point. You should prepare for any eventuality. Are we going to see a complete degrading of society to the point all of our finical assets are gate-kept from us? Probably not, but a major market crash is, and having all of your financial wealth connected to a non-physical instrument which you have no control over is worrying, for me at least.

I have read all the posts commenting on my 1st post. Many have not taken what I have said seriously and mocked even, which I suppose is fine, I'm not a wilting flower, but it would have been great if they had backed up their opinion's with facts and critical thinking to counter, to the verifiable facts which have have provided.

DonSmith

grumpsthegit said:

Moonwolf said:

grumpsthegit said:

Wow that post by DonSmith scared the crap out of me - it seems well thought through and worded so could there be something in this? 

No.  If you are genuinely worried about an apocalypse then tins of beans kept dry at 4C will be much more valuable and perhaps a bunker.  You might find a tinfoil hat helpful as well.

Ha ha yes I do like beans so win win.

However I was not thinking in terms of a WW3 apocalypse event, more of the potentially unsustainable levels of debt that exist in USA causing a significant and prolonged crash that might see my investments hit. Would some Gold not play a role in diversifying of assets. You all seem to be regarding it as totally foolish but (and granted 50% in gold seems too high) but how about 5 or 10%? 

As I said in my 1st post traditionally having 10% of Gold bullion in your portfolio was sensible.

I think we are into territory of substantially larger percentages. JP Morgan only this week have noted they expect equities to stagnate over the next ten years.

The mathematical trends show that gold is now in a new 10 year Bull cycle. Typically when equities do well gold (and other commodities) invert. This is because capital flows between them depending on the stability of the economy.

This time it seems different, as although equities have been hitting all time highs and shooting for the moon, gold has also seen multiple record highs and an increased in value to the dollar by approx. 30% increase this year alone.

I point back to my original post, the record stock highs are in direct relation to the excessive printing of dollar which has artificially inflated the market creating a bubble which will burst in a recession, which BTW if you see that the US government lied about their Labour figures this time last year which kept the recording of 2 months of a contracting growth (which is known as recession) you could argue we already are in a recession but it is being artificially hidden.

Now why would all of this be allowed and facilitated? I have my own theories but I don't won't convey them here in fear of having my tin-foil hat on again!

dunstonh

This time it seems different, as although equities have been hitting all time highs and shooting for the moon, gold has also seen multiple record highs and an increased in value to the dollar by approx. 30% increase this year alone.

That isn't true though.  Equities have not been shooting for the moon and the majority are not in bubble territory.   Tech, on the other hand, is.   Strip out the tech companies and its not really being going anywhere.    

Nebulous2

barnstar2077 said:

The bit about America's debt is definitely of interest though.  I can't see how, arguably, the most advanced country on the planet can't even balance the books every year.  And what they are going to do about it?

I do not see the end of the financial sector as we know it, but it would be good to know that someone has a plan of sorts to reduce America's debt.

They could be in a situation similar to us with the triple lock.  Everyone knows it isn't sustainable in the long term, but who wants to be the one to end the party and take the flak by doing something about it.

American consumption is the engine of the whole world's economy.

I first took an interest in investing as part of a competition at school in the late 70s. Their debt was a concern then, yet they've managed to keep it going for another 45+ years. 

Nebulous2

booneruk said:

barnstar2077 said:

The bit about America's debt is definitely of interest though.  I can't see how, arguably, the most advanced country on the planet can't even balance the books every year.  And what they are going to do about it?

I do not see the end of the financial sector as we know it, but it would be good to know that someone has a plan of sorts to reduce America's debt.

They could be in a situation similar to us with the triple lock.  Everyone knows it isn't sustainable in the long term, but who wants to be the one to end the party and take the flak by doing something about it.

I always wonder, if rising national debt is a huge no-no, how Japan isn't in trouble. 250%+ debt vs GDP I believe, which is massive compared with nearly all other nations.

Their national debt is only part of the picture. They have a lot of personal savings and some of their companies are sitting on a lot of money..... 

DonSmith

Nebulous2 said:

barnstar2077 said:

The bit about America's debt is definitely of interest though.  I can't see how, arguably, the most advanced country on the planet can't even balance the books every year.  And what they are going to do about it?

I do not see the end of the financial sector as we know it, but it would be good to know that someone has a plan of sorts to reduce America's debt.

They could be in a situation similar to us with the triple lock.  Everyone knows it isn't sustainable in the long term, but who wants to be the one to end the party and take the flak by doing something about it.

American consumption is the engine of the whole world's economy.

I first took an interest in investing as part of a competition at school in the late 70s. Their debt was a concern then, yet they've managed to keep it going for another 45+ years. 

Can you provide statistical trend of the debt figures over the last 45+ years, the debt to GDP and the interest due on this debt in relation to all of these years?

Just do a bit of research. If do you will have a clearer understanding and less of a head in the sand stance with a throw away line of it has always been like this.

DonSmith

dunstonh said:

This time it seems different, as although equities have been hitting all time highs and shooting for the moon, gold has also seen multiple record highs and an increased in value to the dollar by approx. 30% increase this year alone.

That isn't true though.  Equities have not been shooting for the moon and the majority are not in bubble territory.   Tech, on the other hand, is.   Strip out the tech companies and its not really being going anywhere.    

Fair point, I should have specified the American markets and specifically the S&P500 which is where the majority of the worlds investments are contained in.

LHW99

This time it seems different,

This time next year Rodney we'll all be millionaires

https://www.youtube.com/watch?v=d5C6WnLAKiI