I`m interested in buying small amounts of gold as a long term investment -
I`ve got the spare money now and am looking for something nice to sell
either when I`m retiring (looking at least 20 years, maybe 30, depending how
other things work out :-) ). Anyone got suggestions as to the best way to
do this? I`m travelling in Europe and the USA over the next few years, no
opportunity to get to the middle east etc.
Thanks in advance.
Gold Bullion but it goes up and it goes down like everything
else...........just depends when the time comes to sell it.
Forget jewellery you pay for the manufacturing process but when sold it is
only worth the gold weight.
Don't forget people selling it want the current going rate so there's very
little chance of that magic deal.
Wish I had bought bull last year when it was at 750......sh1t
The margins those people work on are pretty high, and demand for physical metal
remains strong, apparently. Gold as an investment, or insurance has been
unfashionable for quite a while now (since WW2?), so if only a small %age of
dip their toe in -- as they have in recent years -- it has quite a big effect on
small market.... though I think the big investors playing with the ETFs has more
The potential is obviously there for a bubble. But the more you look at the
financial world we live in (a world which relies on a big bouncy castle of debt
stop it crashing to the ground), the easier it is to develop a nervous twitch
reach for a little solid reassurance.
The advantage of gold is that it's not hard to hide, and you don't have to worry
about rats eating it. :-) And if you have so much that you have to worry about
storage, then you probably have enough money to put it somewhere properly safe.
To avoid this, many people use services like http://goldmoney.com/ which is well
respected. For small amounts it's not very cost effective though.
On 15 Aug, 12:40, snipped-for-privacy@DELETTHISgmail.com (Andrew MacPherson)
Interesting article by Peter Tasker in a recent FT explored that very
point. The author points out that much of the current price of gold
is due to speculation, and that gold is subject to the same boom-and-
bust cycles as some other assets.
Here is part of the author's argument:
"The inconvenient truth is that gold is not really an investment at
all. Since it generates no return and thus has no fundamental value,
the same arguments can be used to justify any price – $500 an ounce or
$5,000. Gold buyers are simply trusting in the bigger fool theory –
that someone else will take it off their hands at a higher price. They
are speculating, not investing, and like all speculators what they are
speculating on is the speculations of other speculators. Packaging it
in an exchange-traded fund makes no difference. "
[Financial Times, 4th August 2010]
It's behind the FT firewall, but you can still find it by googling
"Yen has edge over gold in battle for supremacy"
That debate is fair enough, and a good reason why gold was languishing at
an ounce a decade ago. And I am certainly not going to defend gold as some kind
However for some reason -- beauty, immutability, density, rarity, or whatever --
it has had some financial power throughout the whole of human history. Whether
mythical, mystical, or purely delusional, that power exists in some form.
banks still seem to think so, even if Gordon Brown didn't, and who am I to argue
Ultimately we all have to make our own choices when it comes to preserving what
wealth we've managed to accumulate. But it has never hurt to diversify. The only
question is when you dip your toe into the various asset classes.
Buying a few coins at the wrong time won't hurt you. But buying a house at the
wrong stage in the cycle will enslave you for 25+ years. Every asset class has
risks (though I do wish property wasn't considered an asset... I long for a
where everyone has a very basic housing entitlement).
PS One thing which helped change my mind about gold was when I realised that
"normal" people do have some precious metals in the form of jewellery. That was
traditionally one of the ways people saved... in items you kept with you at all
times. In fact I was the exception among my working class peers in that I had no
precious metals whatsoever. Even if they only had a silver St. Christopher, a
sovereign ring, wedding ring, or small number of pre-war sovereigns from their
grandparents, it's surprising how many people have something, even if the family
silver long since went to the smelter. :-)
I prefer to think of precious metals as insurance rather than an investment. But
either way, this lot are very reliable, and fairly priced...
PS One of my colleagues at work appears to be getting gold from his dentist and
storing it in his mouth. It's not something I'd recommend, as I think dentists'
margins are pretty high. ;-)
Ultimately it`s there as a potential investment and insurance against
everything going a bit pear shaped - gold has always been of value no matter
how bad things have been, so having a relatively small amount can come in
handy. Plus it`s nice to look at ;-)
Why not open a trading account with a low cost broker (selftrade.co.uk
springs to mind), and then buy gold "shares".
Have a look on google finance for the latest price for PHAU
This is an ETF, which lets you buy physical gold in 1/10 oz shares.
Big advantage is theres no need to hold the gold yourself while you go
No good if you like the bling though!
On Sat, 14 Aug 2010 09:15:12 +0100, Simon Finnigan wrote:
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