Best way to buy Gold bars or coins?

cloud_dog

sabretoothtigger wrote: »

If the prices were to spike and gold and silver converge then cef is good to perform but otherwise it has has a premium ?

Sabre, not sure if you've ever monitored the CEF premium (been sooooo long since it was a discount) but....

It used to trade, generally, from +4% to about 11% to 13%ish, and more often than not when it got to the 11 / 13% they bought more gold and the premium would plummet, regular as clock work. So you can play it to your advantage. Although, recently the premium has been going a lot higher before correcting - demand I suppose.

Having said that CEF is in my long term folder so I don't trade it very often.

DiggerUK

Sabretoothtigger,
http://www.lbma.org.uk/?area=stats&page=gold/2009dailygold

If you look at pog GBP you will see that it goes on a different path to $pog. That's why I got involved in Gozo's thread.The forex moves are crucial to me.

Any chat on gold should be in the right place. threads get screwed up quick.

Do you have any gold interests, or just an interest.

Cheers, Digger.

sabretoothtigger

Thanks, thats usefull. Its gone nowhere since feb really. I dont have a big interest in anything tbh, mostly just a spectator.
I'll dive in if I feel I have a clear view on something but mostly I dont

DiggerUK

STT,
You obviously missed the Feb 20th 2009 data, 690. That's the highest in GBP ever.
March 17th 2008 at the spike it was only 505.
Hindsight at 101% says that if I'd put everything in at the spike, I'd be made right now.
You need to track pog in sterling, after all that's the currency we buy it in.

Like everything, you want to buy on the lows. Following the dollar is crucial in making a judgement to buy.

Your right to leave things alone unless you have DYODD. It ain't rocket science, more like learning to ride a bike. It just happens.

sabretoothtigger

I dont see the 505 part but the drop back from feb I was aware of.
If I had switched the money from my ftse tracker closed on jan 6th into gold then I'd have been good but by the time I noticed it was too late so it just confirms that, its been declining and flat since looks like

It is possible to benefit from the gold rise in usd, it just requires a currency hedge I think.

Or if you place money with a spreadbet or CFD company they will take sterling from you and track the usd gld price and then return your profits into sterling again without any deductions or currency loss

DiggerUK

STT,
If you toggle up to top left of LBMA page and click on "gold fixings" you can get previous years.

Spread betting and trading is something I don't understand. Gold I do, which is why I'm in it.

sabretoothtigger

Spreadbets are risky because its a normal trade but with borrowed money for leverage so its like a margin account.

You pay 10% of the actual value of the investment, if the shares or gold price falls then you get asked to start paying up the other 90%. It works best when you guess the direction right

Theres no tax or commission just a spread, CFD there is tax, etc but its leveraged also


1 spreadbet unit of barclays is 100 shares. They fell 14.51p today so you would owe them £14.51

But the price rose today from 9.12am to 10.20am
If you bought and sold then it would be a difference of 8p or 8 pounds.
Minus the cost of their spread and you get to take home about £7 tax free

Its very weighted towards short term trading for that reason

DiggerUK

sabretoothtigger wrote: »

It works best when you guess the direction right

Same as it ever was.
Same as it ever was.

RDB

I am starting to think actually, silver wont go up a lot until 2020, when silver under ground runs out.

Until then the price is manipulated by selling silver that isnt there. When it runs out it will all come crashing down. but we will have to wait a decade.

DiggerUK

For those who are considering gold then now seems a good time to consider buying.

After holding at 600 per oz for a long time it has dipped to 570. Could easily go down a bit further due to strength of pound. Who knows.