Gold SIPP

JoeCrystal

Nebulous2 said:

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..... 

It also helps that 90 percent of Japanese debts are held by domestic investors.

Albermarle

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%? 

Like with all investing, opinions vary.

However having a majority core of equities and maybe some bonds, along with some smaller % in alternatives, such as gold, property, infrastructure, small cap funds etc is a well known strategy. Known as a core and satellite portfolio in the jargon.
However at the end of the day having 5% in anything ( or not) is unlikely to make a material difference to the overall performance.

Nebulous2

JoeCrystal said:

Nebulous2 said:

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..... 

It also helps that 90 percent of Japanese debts are held by domestic investors.

That follows on from them having the personal savings to cover it in the first place. Perhaps I should have elaborated a bit more in my previous post. 

Nebulous2

DonSmith said:

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.

Here's debt to GDP. 

Debt to GDP Ratio Historical Chart | MacroTrends

The trend is up, but there are periods when it has dropped. Notably the 1990s when Bill Clinton was president. 

Dropping interest rates reduces the interest to be paid, and deflating the dollar also reduces the impact of the debt. It's interesting that the dollar has weakened of late. The pound was at around $1.27 for quite a while and is now at $1.32. 

I agree with you - it should be a problem. However I gave up worrying about it a long time ago. 

I found myself with more money than I've ever had about 3 years ago. It blew my mind realising the percentage of a global tracker that was invested in the USofA. I bought some other funds to pivot away from the standard percentage. (smaller uk companies, some japan, some europe)  The global trackers have done significantly better than my satellite funds. 

So this time it may be different. But a lot of people, including me, have missed out by betting against the US. 

DonSmith

A useful read on the continuing mess unfolding across the pond.

https://kingworldnews.com/gold-hits-another-record-high-but-are-we-looking-at-deflation-or-inflation-in-the-future/

Linton

Nebulous2 said:

DonSmith said:

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.

Here's debt to GDP. 

Debt to GDP Ratio Historical Chart | MacroTrends

The trend is up, but there are periods when it has dropped. Notably the 1990s when Bill Clinton was president. 

Dropping interest rates reduces the interest to be paid, and deflating the dollar also reduces the impact of the debt. It's interesting that the dollar has weakened of late. The pound was at around $1.27 for quite a while and is now at $1.32. 

I agree with you - it should be a problem. However I gave up worrying about it a long time ago. 

I found myself with more money than I've ever had about 3 years ago. It blew my mind realising the percentage of a global tracker that was invested in the USofA. I bought some other funds to pivot away from the standard percentage. (smaller uk companies, some japan, some europe)  The global trackers have done significantly better than my satellite funds. 

So this time it may be different. But a lot of people, including me, have missed out by betting against the US. 

And in the next few years you could lose out if you didnt bet against the US. It is unpredictable.

The best solution solution is to make your own allocations based on your own circumstances and stick to them regardless of trends, news, events, the opinions of gurus or anything else.  Personally I take the view that 60-70% is too much to invest in anything and so restrict US to 40%. It is not a bet that the US will perform badly, it is simple risk reduction.

sargan

JoeCrystal said:

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.

No .... I was looking at  % of my UK pensions .. so at most 225k

sargan

I chose not to invest in a GOLD SIPP
I am considering taking 25% tax free portion of Pension and investing in Gold Coin  -   as to performance, yes it can dip but consistently outperforms other key options (see below)

Gold has historically always been the asset that has gone up in times of uncertainty, and with Ukraine & Lebanon, both conflicts that could seriously take over oil prices  .... impacting standard stocks & shares pension performance.

Plus UK Gov may well change the allowance on 25% tax free ... so I use it or possibly lose it  (or see it capped at 100k)

FIREDreamer

sargan said:

I chose not to invest in a GOLD SIPP
I am considering taking 25% tax free portion of Pension and investing in Gold Coin  -   as to performance, yes it can dip but consistently outperforms other key options (see below)

Gold has historically always been the asset that has gone up in times of uncertainty, and with Ukraine & Lebanon, both conflicts that could seriously take over oil prices  .... impacting standard stocks & shares pension performance.

Plus UK Gov may well change the allowance on 25% tax free ... so I use it or possibly lose it  (or see it capped at 100k)

How about adding global equities or S&P500 to that list?

coyrls

Which 5 years?  It doesn't say.  It's easy to cherry pick the best 5 years.  Did you really make your decision based on those two graphs?  The second graph shows that if you bought in 2011, you would have had to wait 9 years until the price returned to the level you bought at and that's without taking inflation into account, it would have probably been over 10 years before you made a real return.