Buying physical gold and silver

[anonymous-user]

Where's best? Places like this http://www.bullionbypost.co.uk/ or local auctions? Ingots or coins? Or out-of-fashion jewellery and silverware just for the metal content?

Any advice would be welcome. This will just be a small-scale investment with spare cash I could afford to lose just for a bit of fun; other investments, mortgage, pension etc already sorted to my satisfaction so I'd be grateful if any advice was limited to where and not whether to buy.

Thanks in advance.

[mrmr96]

If you're planning to 'invest' money you don't mind losing then why choose somthing like this which is such a pita to deal with?

The problem (well one of) is that any time you want to trade it there are high transactional costs involved as whoever is the buyer will want to verify the purity. This goes for you as well as anyone you sell to.

Surely there's better investments available as well as more fun ways of losing money?

[anonymous-user]

Thanks but I repeat '' so I'd be grateful if any advice was limited to where and not whether to buy.''

[rudecherub]

Buying used coinage / jewelry would go like this.

You'd need a book of halmarks so you'd read the code as the metals quality/origin, then a set of digital scales to weigh so you can get a price based on the up to date value.

Set yourself a limit and bid for the item at auction.

Otherwise a quick google shows you can buy both coin and bars in the UK.

Price right now isn't bad.

[anonymous-user]

I like auctions so was considering this. No vat either apart from on the comission. I noticed on that website I put in the first post that gold bullion is vat free but silver isn't, that makes a big difference.

[FreeLitres]

OP - just watch out for fakes, especially when buying old chains, etc.

http://www.youtube.com/watch?v=tHO_Dj2dAxE

To test them, you need to take some filings off the item and do an acid test asper the video.

[anonymous-user]

Thanks for that. It's always in the back of my mind but not so easy to spot. Perhaps bullion direct from wherever would be safer but less fun.

[B17NNS]

rovermorris999 said:

Thanks for that. It's always in the back of my mind but not so easy to spot. Perhaps bullion direct from wherever would be safer but less fun.

plus bullionbypost will always buy back at something like 98% of spot.

The cash for gold type places are paying so close to spot that bargains aren't out there.

[anonymous-user]

Yes, not expecting any bargains. Perhaps sovereign rings would be a good idea. I could at least do Bobby George impressions at Christmas.

[e8_pack]

When you buy from a dealer they will buy it back commission free.

I also bought and sold bars of silver on Ebay, no problems.

Gold is usually sealed and certified anyway, an ounce isn't much to look at! Can always but safe and go krugerrands etc, but you get less for your money.

[Dave 500]

http://www.atkinsonsthejewellers.com/

http://www.guernseymint.com/

HTH

[anonymous-user]

Thanks for those links Dave.

[Muntu]

I use bullionvault.com, they seems as good as any. They had a good write-up in the telegraph some time back. They are worth a google (along with any others you are considering) for background info.

[hornet]

I've used both of these with no issues :-

http://www.sarniasilver.com/
http://www.atsbullion.com/

Former by post and the latter in person.

[anonymous-user]

Good info chaps, many thanks, just what I needed.

[longone]

The coins and self store route is usually referred to as 'stacking' and a very good site that discusses all about the detail is BrotherjohnF.com or silverforthepeople-the blog. The host does a podcast thing every few days called his Silver Update. The big issue though is not investemnt as such, the metals' values will take care of themselves, it's the fact someone somewhere will know you have them about your property etc. I'd strongly advise against complacency is this area. I have my whole net worth in PMs but do not store any myself.
The stored physical routes include BullionVault.com and GoldMoney.com

[Cheib]

If you buy Royal Mint Gold Sovereigns they are CGT free but I believe most other forms of physical gold aren't. They thus trade at a slight premium to bullion (1 or 2% I believe). I was told that by someone who owns "quite a lot" of bullion and has now been buying sovereigns.

[CaptainSensib1e]

Have you considered investing in a physically backed exchange traded fund? Saves on the hassle of transporting/storing.

[ringram]

Massive counterparty risk if the st does hit the fan.
Most people recommend physical for a reason.

[CaptainSensib1e]

ringram said:

Massive counterparty risk if the st does hit the fan.
Most people recommend physical for a reason.

Much less than synthetic ETFs. Even if the st does hit the fan, then the gold is safe in a vault somewhere.