Investing in gold
Discussion
I buy the odd Sovereign, its probably the closest you can get to the spot price of gold in in the smaller coins. Not sure how good an investment it is really. I've never tried allocated or ETFs. Although ETFs might be the best as you can just trade on the price and not have to worry about buying/selling/storage.
Gold is nice to hold in your hand though.
Gold is nice to hold in your hand though.
46and2 said:
Gold is nice to hold in your hand though.
This, nothing like holding a few cast 1oz bullion bars in your hand. It's not going to make you rich but it should go up in value over the long term, but it is probably more effected by the USD/GBP exchange rate than anything else.Joey Deacon said:
This, nothing like holding a few cast 1oz bullion bars in your hand. It's not going to make you rich but it should go up in value over the long term, but it is probably more effected by the USD/GBP exchange rate than anything else.
I just think of it as an alternative savings account that's hard to spend. 
vulture1 said:
Buy gold miners stock? Assuming you are buying gold for it to go up in value so same applies to the miners stock
I don't disagree but make sure you go with the larger ones or accept the risks, local blockades, government changes, land slips etc, been hit by a few of these!Miners seem low (unloved) right now.
Scootersp said:
vulture1 said:
Buy gold miners stock? Assuming you are buying gold for it to go up in value so same applies to the miners stock
I don't disagree but make sure you go with the larger ones or accept the risks, local blockades, government changes, land slips etc, been hit by a few of these!Miners seem low (unloved) right now.
I have been buying a few gold coins over the last few years, I’m buying them for two reasons really, first being that I’m starting to put dates together on the sovereigns - it satisfies the OCD/collector in me and I see it has something to pass onto my granddaughter when she is older.
There’s better investments out there I’m sure and have noticed gold reacts very differently to the rest of the markets and is very volatile but I think long term I should be ok.
But first and foremost to me it’s a hobby but unlike my other pastimes there’s a chance of seeing some return at the end.
There’s better investments out there I’m sure and have noticed gold reacts very differently to the rest of the markets and is very volatile but I think long term I should be ok.
But first and foremost to me it’s a hobby but unlike my other pastimes there’s a chance of seeing some return at the end.
jimmythingy said:
But first and foremost to me it’s a hobby but unlike my other pastimes there’s a chance of seeing some return at the end.
Thats it, its something you can buy and indulge the collector/consumer urge, which in the end of the day will likely be easy to sell and might even track inflation and hold its value.I've got a mixture of physical gold in the form of UK coins, gold ETFs and gold mining shares. Each has a different purpose.
The coins help me sleep at night knowing that whatever crisis arises, I have purchasing power. Buying and selling is a bit expensive compared with the other forms of gold, and you need to pay someone to store them safely for you - you don't really want to keep them at home.
The ETF is cheap to buy and hold, but does hold some confiscation and custody risk. In a financial crisis, it should have some countercyclical properties, or at least maintain its value. It is a useful hedge against QE.
Gold miner shares allow you to trade the gold market with leverage. You might make 5x, but you might lose most of your investment.
I hope this helps.
The coins help me sleep at night knowing that whatever crisis arises, I have purchasing power. Buying and selling is a bit expensive compared with the other forms of gold, and you need to pay someone to store them safely for you - you don't really want to keep them at home.
The ETF is cheap to buy and hold, but does hold some confiscation and custody risk. In a financial crisis, it should have some countercyclical properties, or at least maintain its value. It is a useful hedge against QE.
Gold miner shares allow you to trade the gold market with leverage. You might make 5x, but you might lose most of your investment.
I hope this helps.
Cheib said:
Investing in miner’s of any kind is very risky….huge idiosyncratic risk. Avoid as a proxy.
yes finding this out, geopolitical issues, meteorological, indigenous people etc etc.The larger miners generally have the lesser risk, and then the risk/reward goes up from there, but yes I take your point it's not 'safe' by any means. There is an obvious correlation to the metals price and so the majority should lift accordingly and by more than the metal price itself does but nothing is guaranteed.
My thinking is the producers of today survived through times of lower prices, the prices have been fairly steady and historically high during the pandemic and the argument is the monetary policies and outlook favour an increase in Gold more than a decrease? If it doesn't then they are still producing it and able to sell at near all time highs and way above their all in sustaining costs, so should maintain profitability/dividends.
All a gamble, and perhaps Gold really has lost it's shine in this modern age...
Scootersp said:
All a gamble, and perhaps Gold really has lost it's shine in this modern age...
Definitely a gamble as with most things. One thing I always keep in mind though is that as long as gold holds its importance in the likes of India and Indian culture the market will always be there and I know the desire for gold isn't just confined to india. wastedyouth86 said:
just invest in a Rolex you have a far prettier box and money just as secure... just a longer waiting list to get the investment.
Fair point, but from what I understand it has to be a Rolex that is in demand and not all of them are. Basically anything that is in the window of a jeweler is not in demand, I believe they are only really going to have Datejust models that nobody really wants.The ones that are worth money are the Batman, Pepsi, Hulk and Daytona models. I am sure someone from the watch thread will correct everything I have said as I don't actually own any watches to give wrist time to.
Gold doesn't need any servicing or looking after though, you could literally bury it in the garden and dig it up 30 years later and it would be fine.
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