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Gold investing
Comments
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Myself and MM3 seem to both hold a similar view of ETC's (Gold/PM ETF's) in that they are primarilly based on options/futures contracts.
The 'physical metal' type from ETF Securities are backed by allocated bullion in the custodian of HSBC. The allocation is to the fund rather than the individual investor.
They're not backed by derivatives at all.0 -
The 'physical metal' type from ETF Securities are backed by allocated bullion in the custodian of HSBC. The allocation is to the fund rather than the individual investor.
They're not backed by derivatives at all.
No but in the event of a "Crunch" you would be a creditor and last in line to get your £o££y back if any at all.:cool:Are U getting enough Vitamin D in your life!?0 -
A couple of other points to bear in mind.
If you buy physical cold coins or bars the brokers will take a percentage fee on top of that days price. So say todays price was $1000 a troy ounce, and the exchange rate was a flat 2.00$/1.00£ - You would expect to be charged £500 for your ounce. However, on top of the £500 something like a 6% fee would be levied. So you would pay £503, per ounce. The actual percentage varies, depending on coin or bar, and quantity, and negotiation.
You will also be charged a fee if you sell them back. That depends on demand, and you can probably negotiate.
Ebay final prices tend to reflect this percentage. + if you buy off ebay make sure you pay for Royal mail special delivery, as that is the only postal courier service other than UBS, and specialist security couriers that is secure.
Many coins are not pure gold. Most are a 98% alloy, makes em much more hard wearing. BUT they do contain the full ounce of pure gold. So if you weigh them you will find that they weigh slightly over the ounce.
Most experts recommend not having much more than 20% of your portfolio in Gold. I know that the price is rocketing at the moment but falls can be as quick, and selling in a falling market is not much fun.
Coins and bars are, I think safest, as you have them in your hand, buried in the garden or whatever: and if the !!!!!! really hits the fan owner ship of physical gold will open many doors and might even save your life!!0 -
Jon3001, yes, I accept that not all ETF/C's are the same and possibly should have ghone in to the finer granulation of how funds represent being invested in gold / PM's but .................... as I pointed out earlier we (all) have gone over this ground in a lot of detail in other posts and there is a lot of good info if people want to look for it.The 'physical metal' type from ETF Securities are backed by allocated bullion in the custodian of HSBC. The allocation is to the fund rather than the individual investor.
They're not backed by derivatives at all.
cloud_dogPersonal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
sorry to be a party pooper... but i still don't see the greatness of gold... it doesn't yield anything, and has been outperformed by so many other asset classes over the long term...
even if you simply want to preserve "real value", then NS&I's RPI-linked bond, and various other index-linked bonds do exactly that, and are much less risky/volatile than gold.
yes its pretty, and i see it as an attractive jewellery or decorative metal. but as an investment? not for me thanks.0 -
sorry to be a party pooper... but i still don't see the greatness of gold... it doesn't yield anything, and has been outperformed by so many other asset classes over the long term...
even if you simply want to preserve "real value", then NS&I's RPI-linked bond, and various other index-linked bonds do exactly that, and are much less risky/volatile than gold.
yes its pretty, and i see it as an attractive jewellery or decorative metal. but as an investment? not for me thanks.
Ignoring the "Is gold money or a commodity" discussion, physical commodities and gold and silver in particular have a value which is independent of individual currencies even though they are priced in USD. They will hold their real value even if the USD or the GBP is devalued which is what we are seeing now in the case of USD.
In the case of the Index Linked Savings Certificates, they are protected against inflation with a small increase on top but they are NOT protected against devaluation of the pound because the return you receive is in pounds. I accept that if the GBP loses value inflation will increase also because of Britain's current dependence on imports but, theoretically, you could sell your physical gold anywhere in the world in exchange for the local currency and that is a big advantage.0 -
Can anybody help a few weeks ago there was a TV programme which had a feature about investing in gold. Can anybody help and tell me which programme it was or point me in the right direction of gold investing (not a large amount!!!!!!). Thanks
read Jim Sinclair at
http://www.jsmineset.com/
follow the principles that he lays down. (i.e beware paper substitutes)
I have previously used http://www.bullionvault.com/ ,which I think is excellent.
For silver I used Goldmoney.com.
But if you're investing small amounts,as one poster suggested, coins are as good as anything if you can pay as near to spot price as possible (see Kitco.com for spot prices or Bullionvault.com)
Now I am currently 100% into silver and gold mining stocks (with most of my investments in silver)0 -
Sorry to sound naive,
how much would people class as investing in small amounts of gold in £`s, and how much money would be moving to large amounts.
So up to how much could be invested to only recieve coins.??
ta0 -
Sorry to sound naive,
how much would people class as investing in small amounts of gold in £`s, and how much money would be moving to large amounts.
So up to how much could be invested to only recieve coins.??
ta
If I was considering investing less than £1000 and then investing the odd hundred pounds here and there,I would definitely buy physical gold or silver.My own preference right now is silver as I feel it has a much better potential for % gain than gold (read Theodore Butler at http://www.investmentrarities.com/tb-archives.html).
There is no reason not to invest sunstantially more than that (the sky is the limit) in physical gold and silver,but you would have to hide it in a safe place.
**Please read Jim Sinclair regarding removing as many people between you and your assets**
When the sh** hits the fan, as it is going to, people will be robbed of their paper assets by the collapse of companies.At least if it's in your house someone would have to break in and find it,rather than someone just shutting down their website.
There are even question marks as to whether ETF's hold physical metal and are not playing the derivatives game.
Once your into the thousands your options are more varied,but other than buying allocated gold (as at Bullionvault.com) you might just be buying a paper receipt that could end up worthless.
In the current financial climate expect the worst and plan accordingly.0 -
Well, I'm convinced ... :j
I'll be investing in Solid Gold, ... and Liquid Gold, ...
I'll contact the Halifax in the morning ... :rotfl:Imprudent granting of credit is bound to prove just as ruinous to a bank as to any other merchant.
(Ludwig von Mises)0
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