Gold sovereign purchase and first world problems

pringy978

I've recently been handed an early inheritance in the form of a large wad of cash. Not a huge amount but more than is sensible to leave in the house.

As I can't let my family and therefore my partner know (I love her, but she will tell someone) I was thinking of buying gold sovereigns as they're easier to hide and more resistant to the elements than cash.

Is it a good idea? I don't have debt and have no major life needs, something for the long term future would be nice but I can't make regular investments due to shared finances and the fallout that would come if this gets out. 

Brie

Depends perhaps on where you buy the sovereigns.  I know someone who was talked into buy limited edition sovereigns that basically aren't worth the metal.  

And isn't the price of gold high right now so maybe not the best time to be buying.  Again - I worked a few decades back at a brokerage firm when gold was skyrocketing and a colleague remortgaged her home to get in on the whole thing.  Of course the price dropped dramatically a couple of months later.  

What's to keep you from dropping the cash into premium bonds or similar?  Safe, discreet, you might win a bit more.  All dealt with online.

QrizB

Brie said:

What's to keep you from dropping the cash into premium bonds or similar?  Safe, discreet, you might win a bit more.  All dealt with online.

If it's cash (a suitcase full of fivers) the OP would need to pay it into a bank account first, and the bank will want to know where it came from. Which might not be an option, depending on what sort of paper trail the donor will consent to.

Bullion sovereigns can be bought over the counter, I think?

gravel_2

I believe reputable dealers will need to do some form of AML checks if you try to purchase over £5k. That's not even 9 sovereigns.

I don't believe there is any actual reporting to any government agency but they need to be satisfied as to the origin of the funds which I suspect you will struggle with unless your income can explain the amount of spending you are doing.

There are some second-hand dealers in online precious metals communities that are happy to take cash in the post...

jaybeetoo

Storing gold at home is not usually a good idea.  You’d need to take out insurance if you want it protected.  There are easier, more secure and cheaper ways of buying gold, e.g. iShares `Gold Bullion ETF.

masonic

There are some obvious red flags here. You are entitled to have your own (legal) private finances, not known to partner or family, if you wish. There are options that you could open without any letters being posted to your address and that you could manage online in private. You would probably need a branch-based bank to initially deposit the cash, and that may take time and/or documentation.

Buying gold and hiding it in the home you share with your partner sounds like a terrible idea if this is the person you wish to keep this secret from.

Or do you need to keep it secret from the DWP too?

HappyHarry

Why can’t you let your partner or family know?

subjecttocontract

Why can't t you put the money into an isa......you can't have a joint isa, it has to be in your name. 

leosayer

pringy978 said:

I've recently been handed an early inheritance in the form of a large wad of cash. Not a huge amount but more than is sensible to leave in the house.

As I can't let my family and therefore my partner know (I love her, but she will tell someone) I was thinking of buying gold sovereigns as they're easier to hide and more resistant to the elements than cash.

Is it a good idea? I don't have debt and have no major life needs, something for the long term future would be nice but I can't make regular investments due to shared finances and the fallout that would come if this gets out. 

Sounds like you want instructions how to launder money. 

Your problem isn't keeping this knowledge from your partner, it's how to answer all the questions that will inevitably come from a bank when you try to pay in. 

Without a bank account, you've got little hope of investing in anything legitimate. 

HedgehogRulez

Have you considered leaving your partner?

onomatopoeia99

QrizB said:

Brie said:

What's to keep you from dropping the cash into premium bonds or similar?  Safe, discreet, you might win a bit more.  All dealt with online.

If it's cash (a suitcase full of fivers) the OP would need to pay it into a bank account first, and the bank will want to know where it came from.

When I paid a significant sum of cash into my current account in cash they asked and I said "your next door neighbour on that side" pointing to the branch of a different bank that was adjacent on the high street "as that's as far as I'm prepared to walk with carrying my life savings", which was accepted without comment.  And no, they couldn't manage a transfer from the cash ISA (previously ToISA, previously TESSA) account I withdrew it from, at the time it was either cash, move it to a current account with the same bank (that I didn't have) or leave it where it was.