Buying gold bullion
Discussion
After seeing the interest rate at 0.1% on my isa I think I can put my into a real asset such as gold.
I don’t want to get into property again, and I’m not buying shares either.
I want an asset based investment, I would be looking at purchasing gold from an online gold dealer.
Does anyone have any experience in this field of investment.
It’s not something I would want to flip after a month it’s long term with a view to adding to the gold to my investment over time when I have spare cash.
Thanks.
I don’t want to get into property again, and I’m not buying shares either.
I want an asset based investment, I would be looking at purchasing gold from an online gold dealer.
Does anyone have any experience in this field of investment.
It’s not something I would want to flip after a month it’s long term with a view to adding to the gold to my investment over time when I have spare cash.
Thanks.
Before the thread turns into a lengthy discussion about whether gold is a 'real asset' or not.
You can buy it easily from outfits like 'Bullion by post'. They will store it for a fee, but I don't think having a few coins or small bars hidden in the back of your wardrobe is much of a risk. Just be a bit careful about which gold you buy, there are plenty of coins in particular that sell for well over the basic value of the gold. Of course they may be an investment in their own right but for your purposes keep it simple with something like sovereigns or krugerrands, or just bars.
You can buy it easily from outfits like 'Bullion by post'. They will store it for a fee, but I don't think having a few coins or small bars hidden in the back of your wardrobe is much of a risk. Just be a bit careful about which gold you buy, there are plenty of coins in particular that sell for well over the basic value of the gold. Of course they may be an investment in their own right but for your purposes keep it simple with something like sovereigns or krugerrands, or just bars.
https://www.bairdmint.com/
Walk in and buy gold sovereigns if you visit the centre of London.
Not sure if they are open at the moment
Walk in and buy gold sovereigns if you visit the centre of London.
Not sure if they are open at the moment
Thanks, I did find another thread on gold and it was an interesting read.
I have seen bullion by post and They get good reviews.
I’m looking at gold as a asset that I can actually own as a-pose something that is paper wealth like stocks, and something I don’t have to maintain such as property. It can just sit there and hopefully make more than 0.1% that I get in my isa.
If I build up 25% of my wealth in gold I feel like I’ll have a better chance of growth than what the banks are offering. Diversify if that’s the right terminology.
I really have no idea about gold as it’s the first time I’ve thought about it.
I have seen bullion by post and They get good reviews.
I’m looking at gold as a asset that I can actually own as a-pose something that is paper wealth like stocks, and something I don’t have to maintain such as property. It can just sit there and hopefully make more than 0.1% that I get in my isa.
If I build up 25% of my wealth in gold I feel like I’ll have a better chance of growth than what the banks are offering. Diversify if that’s the right terminology.
I really have no idea about gold as it’s the first time I’ve thought about it.
nyt said:
https://www.bairdmint.com/
Walk in and buy gold sovereigns if you visit the centre of London.
Not sure if they are open at the moment
Are sovereigns priced above the value of their gold content?Walk in and buy gold sovereigns if you visit the centre of London.
Not sure if they are open at the moment
I think I was reading somewhere that physical gold and 'gold held on paper' had their price diverging recently, what with the market turmoil seeing people attempting to get out of anything that might drop like a stone, so it's all a bit confusing for those of us not experienced in the markets.
Think about it long and hard. In the same way that trading currencies isn't investment, neither is buying gold. You're not putting your money to work by funding a commercial activity or by lending your money to someone who will pay you interest, so on average you wouldn't expect the value of your gold to grow above the rate of general price inflation.
In the past during times of economic panic the price of gold has gone up, so if you think the same underlying mechanisms will reassert themselves the next time there's a panic, there's some logic in holding some gold. But government bonds also tend to rally as a safe haven investment, and they pay you a return during normal market conditions too.
The other thing to consider is the cost of buying and selling gold. Are you going to be able to trade anywhere close to the fair price in the market, or are you going to get burgled each time you buy or sell?
In the past during times of economic panic the price of gold has gone up, so if you think the same underlying mechanisms will reassert themselves the next time there's a panic, there's some logic in holding some gold. But government bonds also tend to rally as a safe haven investment, and they pay you a return during normal market conditions too.
The other thing to consider is the cost of buying and selling gold. Are you going to be able to trade anywhere close to the fair price in the market, or are you going to get burgled each time you buy or sell?
steve_bmw said:
It’s not something I would want to flip after a month it’s long term with a view to adding to the gold to my investment over time when I have spare cash.
If you are going to drip feed, as part of other investing and long term view then great. Otherwise its probably at a high right now.steve_bmw said:
Thanks, I did find another thread on gold and it was an interesting read.
I have seen bullion by post and They get good reviews.
I’m looking at gold as a asset that I can actually own as a-pose something that is paper wealth like stocks, and something I don’t have to maintain such as property. It can just sit there and hopefully make more than 0.1% that I get in my isa.
If I build up 25% of my wealth in gold I feel like I’ll have a better chance of growth than what the banks are offering. Diversify if that’s the right terminology.
I really have no idea about gold as it’s the first time I’ve thought about it.
Stocks are not paper wealth, they are a share in the ownership of a company, which means a share in the assets and a share in the profits.I have seen bullion by post and They get good reviews.
I’m looking at gold as a asset that I can actually own as a-pose something that is paper wealth like stocks, and something I don’t have to maintain such as property. It can just sit there and hopefully make more than 0.1% that I get in my isa.
If I build up 25% of my wealth in gold I feel like I’ll have a better chance of growth than what the banks are offering. Diversify if that’s the right terminology.
I really have no idea about gold as it’s the first time I’ve thought about it.
I’m not going to bother rehashing the arguments at length, but what makes you think that having a chunk of shiny metal that pays neither dividends nor coupons is better than ownership of some profitable companies? You should have a good answer to this before you plan on buying any.
If you do buy it, remember to insure it. I’m still tempted to get a 1kg gold bar, as they are very shiny, and would make a nice paperweight, but I’d not expect to make any money from owning it.
Main thread here:
https://www.pistonheads.com/gassing/topic.asp?h=0&...
read it all, lots of useful info.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
read it all, lots of useful info.
Kent Border Kenny said:
Stocks are not paper wealth, they are a share in the ownership of a company, which means a share in the assets and a share in the profits.
I’m not going to bother rehashing the arguments at length, but what makes you think that having a chunk of shiny metal that pays neither dividends nor coupons is better than ownership of some profitable companies? You should have a good answer to this before you plan on buying any.
If you do buy it, remember to insure it. I’m still tempted to get a 1kg gold bar, as they are very shiny, and would make a nice paperweight, but I’d not expect to make any money from owning it.
I was thinking about a 1KG silver bar as a paperweight. Much cheaper, and less likely to cause worries if nicked.I’m not going to bother rehashing the arguments at length, but what makes you think that having a chunk of shiny metal that pays neither dividends nor coupons is better than ownership of some profitable companies? You should have a good answer to this before you plan on buying any.
If you do buy it, remember to insure it. I’m still tempted to get a 1kg gold bar, as they are very shiny, and would make a nice paperweight, but I’d not expect to make any money from owning it.
Evoluzione said:
AFIK gold is bought and held if you think that the economy is going to crash. By crash I mean an almighty crash whereby everything you own becomes worthless and gold will be one of the very few things left of any value nationally and globally to trade with.
Except in a zombie apocalypse, why would it have any value? If you're hungry and need to shoot zombies, why would I hand over food or ammo in return for a gold bar?"Plant" your big bars in the countryside or desert using https://what3words.com and 2 people a word each and one with your will-just incase you get hit by that bus !
this is where i buried mine
https://what3words.com/human.hats.tune
this is where i buried mine
https://what3words.com/human.hats.tune
Edited by tescorank on Friday 19th June 08:25
Just remember that 0.1% on cash in the bank is a massively higher return than home stored gold. You have zero entry and exit costs. Zero storage costs. And zero capital risk.
Something to consider is that your transaction cost of buying the gold will be 100 times or more greater than
1 year’s income on cash in a current account.
The other key point to remember is that gold is mostly an inefficient means of holding the USD so a gold based savings plan would actually be a long term bet on the USD’s relationship to the GBP. Right now Gold is a bet on how well we negotiate a trade deal with the US as well as how well the US deals with its China trade war.
Also, if you pull up a 10 year chart on gold you’ll see that the age old claim that it’s a great hedge against inflation and money printing has been well and truly busted and put to bed.
Something to consider is that your transaction cost of buying the gold will be 100 times or more greater than
1 year’s income on cash in a current account.
The other key point to remember is that gold is mostly an inefficient means of holding the USD so a gold based savings plan would actually be a long term bet on the USD’s relationship to the GBP. Right now Gold is a bet on how well we negotiate a trade deal with the US as well as how well the US deals with its China trade war.
Also, if you pull up a 10 year chart on gold you’ll see that the age old claim that it’s a great hedge against inflation and money printing has been well and truly busted and put to bed.
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