Gold! Always believe in.....help!

[Simon Bags]

Morning People. Gold. I'm sort of thinking of purchasing a little bit, mainly for self amusement and a bit to see if it goes up in value and hence investment. I've done some trawling and can find uk sites that sell gold, and I think I've narrowed it down to wanting either a slither of gold from Umicorn? Or to purchase a Krugerrand? Both the same weight and I'm thinking of 1 ounce.

Have any of you bought gold over the internet and can recommend someone, and what in your opinion is the best to go for, coin or bullion?

Thanks for your help.

Simon.

[Gareth79]

Bullionvault perhaps? The problem is that investment gold is subject to CGT whereas coins aren't. I think BV will report your opening of an account to HMRC so it's possible it might trigger self-assessment if you don't already do this.

[Fittster]

http://www.moneyweek.com/investments/precious-meta...

[ringram]

IMO at best its a hedge, its not an investment in itself so make sure you are diversified.
My 2p

[DonkeyApple]

Gareth79 said:

Bullionvault perhaps? The problem is that investment gold is subject to CGT whereas coins aren't. I think BV will report your opening of an account to HMRC so it's possible it might trigger self-assessment if you don't already do this.

But what is the mark up on physical over spot?

What annual CGT allowance do you have?

How does a potential tax liability after allowances contrast to the premium of physical delivery + the loss on future sales of physical stock once held outside of recognised depositories?

Physical gold is useful if you plan on going on the lamb or you fervently believe the end of the world is nigh or you live in an unstable corner of the third world.

Otherwise, spot is the only sensible way to invest.

[Fittster]

DonkeyApple said:

if you plan on going on the lamb .

[matsmith]

Fittster said:

DonkeyApple said:

if you plan on going on the lamb .

Perhaps the butcher DA uses only accepts physical gold for payment?

Or an erroneous "b" made its way to the end of that quote.

I like to think it's the first one

[zcacogp]

At a guess, Lamb = Lamb Chop = Hop.

(Going on the run.)


Oli.

[stefd]

I think BlackRock (iShares) do a gold Exchange Traded Fund. Probably far less hassle than buying gold yourself.

[matsmith]

zcacogp said:

At a guess, Lamb = Lamb Chop = Hop.

(Going on the run.)


Oli.

I like your theory, but I'm fairly sure it's wrong.

The saying is "going on the lam", and its origins can be found on google.

OP, just to add something relevant to your thread; it doesn't sound as though you are looking to buy £100k worth, so if you are considering buying an ounce or two, then the CGT etc will be irrelevant. If you like the look of Krugerrands then buy one. But don't do it with the expectation of making money. Do it because you would like to own one. Terrible investment advice, I know, but lets face it $1400 gold is hardly promising investment of the year.

[ringram]

stefd said:

I think BlackRock (iShares) do a gold Exchange Traded Fund. Probably far less hassle than buying gold yourself.

And where gold excels is in times of chaos, in which case how will your counterparty risk look!?
Im sure they are still unwinding Lehman trades now..

[DonkeyApple]

matsmith said:

Fittster said:

DonkeyApple said:

if you plan on going on the lamb .

Perhaps the butcher DA uses only accepts physical gold for payment?

Or an erroneous "b" made its way to the end of that quote.

I like to think it's the first one

Alas, while my local butcher is kosher and I'm sure would accept physical gold he operates mostly on GBP from what I have experienced

Sadly it is an erroneous 'b', as I was under the impression it was Cockney slang rather than US.

To Fitts, I know you like MoneyWeek, but google thier SE1 address and have a butchers at the other 'companies' that come up. At that point you will understand exactly what they are and what they do. These things will strip a punter of their money quicker than a Chelsea we.

[Fittster]

DonkeyApple said:

To Fitts, I know you like MoneyWeek, but google thier SE1 address and have a butchers at the other 'companies' that come up. At that point you will understand exactly what they are and what they do. These things will strip a punter of their money quicker than a Chelsea we.

The link was simply to show the different ways one can choose to hold gold, I make no prediction of it's future price. Moneyweek happen to be a magazine who don't hold their articles behind a paywall so they are easy to link to, however the publisher does produce a lot of tip sheets, which are probably not going to make anyone rich. Having said that the guy who found it, has published books urging people to buy from 2003, which would had lead to very fine returns.

http://www.amazon.co.uk/Financial-Reckoning-Day-Su...

[DonkeyApple]

So long as you know Agora Lifestyles, Red Hot Penny Shares, Fleet Street Publishing etc.

MoneyWewk is the Daily Mail of my market. It's there to tell people what they want to hear and to scare them into making a financial choice.

[Fittster]

DonkeyApple said:

So long as you know Agora Lifestyles, Red Hot Penny Shares, Fleet Street Publishing etc.

MoneyWewk is the Daily Mail of my market. It's there to tell people what they want to hear and to scare them into making a financial choice.

Any news source that gets the general public to consider their finances is a good thing, the level of financial illiteracy in the UK is quite surprising. Considering how important money is to most people the level of thought that goes into it is quite shocking. WH Smiths is stacked with magazines on Celebs, music, computers and pretty much any hobby you can think of but there are really only 3 magazines about finance:

Moneyweek - The daily mail if you wish, which gives a fairly high level (or basic if you prefer) view of the world.

Investors Chronicle - More in-depth but the volume of tips it produces is a bit embarrassing, if you buy on all their recommendations you'd end up with a huge portfolio. If they were braver and simply said "We've looked at the market and currently we can't see anything worth buying" I'd have more time for them.

Shares - They seem to be more focused on quick returns and the use of technical analysis puts me off.

I doubt reading any of them will make you rich, but then again neither will ignorance. I've never seen any academic evidence about the quality of their share tips but my suspicion is that it wouldn't be positive. I guess the need to publish something every week is a weakness, filling those pages with something new and constructive every week would be a challenge.

For the record, I've no idea about what's a good investment and if you copy me you'll end up with me for company in the poor house.

[Simon Bags]

matsmith said:

I like your theory, but I'm fairly sure it's wrong.

The saying is "going on the lam", and its origins can be found on google.

OP, just to add something relevant to your thread; it doesn't sound as though you are looking to buy £100k worth, so if you are considering buying an ounce or two, then the CGT etc will be irrelevant. If you like the look of Krugerrands then buy one. But don't do it with the expectation of making money. Do it because you would like to own one. Terrible investment advice, I know, but lets face it $1400 gold is hardly promising investment of the year.

Phew, thank God for that! No, I'm not going to get some kilo bar of Gold delivered if that's what you mean, just after something I've always wanted, a little bit of gold. Think I might go for a nice 1 ounce Krugerrand.

Cheers. Simon.

[cailean]

You could just buy a good stable gold mining company's shares - Gold Corp is one I am looking at.

[Scraggles]

nothing like buying at the peak of the market, about the same as bottler brown selling when gold was really cheap

[cailean]

That depends on where you think prices are going in the future. Where prices have come from is irrelevant it is all about where prices are going.

[GTIR]

Simon Bags said:

Phew, thank God for that! No, I'm not going to get some kilo bar of Gold delivered if that's what you mean, just after something I've always wanted, a little bit of gold. Think I might go for a nice 1 ounce Krugerrand.

Cheers. Simon.

You may be better off buying British sovereigns over Krugerrands as the demand is outstriping supply (one company is just fulfilling it's May orders) so the premium is much higher (coins usually have a lower premium than bars) and are exempt from CGT and are easier to resell, over bars.