Buying precious metals as an investment

124 posts in this topic

Posted

I am thinking of starting an investment club, I was going to start it a few years ago with stocks and shares but thought sod it, way to complicated and hard to manage in what shares to buy blah blah.

so I have come up with a new solution. no pratting around, just buying the yellow stuff from a gold dealer and keep it at the bank. my plan is about an ounce each week, any who wants to join me drop me a pm.

I should likely stick some disclaimer on this that gold prices could go up or down...

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Posted

gold price rises in a bear market, as a rule, as it is seen as a safe haven. The gold price is probably relatively high at the moment, though I haven't checked.

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Posted

gold is up, jewellery is more costly than a few years ago.

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Posted

Gold has risen by about a third over the last six months...

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Posted

it went from 640 to 920 USD last year has dropped to 890 usd at the moment

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Posted

you might be able to buy gold funds rather than carrying the little bits to the bank every week

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Posted

I think its better not to buy it physically though, you can do it in the paper format (something like gold bonds, metal trading)

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Posted

Have a look at Bullionvault.com

I've been hearing good things about them and might invest some of my savings with them

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Posted

Yeah, I was going to mention it could be worth using this site. Thanks to the joys of Facebook, I found out that mate of mine from a few years back stopped coding AI fraud systems and set this thing up with a couple of others several years ago.

I doubt that mentioning my name you would get any discount though!

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Posted

I like that my gold on BV is my property (if really true, this means BV offers more safety than a bank in case of bankruptcy):

For as long as you own it your gold remains your outright property, stored in specialist facilities reserved exclusively for BullionVault clients and run by accredited professional vault operators who are wholly independent of BullionVault. You choose the storage location :- London, New York or Zurich.

What I don't like is that they send me unencrypted email notifications about gold transactions I made.

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Posted

You have a few alternatives:

1) Buy gold.

2) Buy mining stocks.

But:

1) Too heavy.

2) I prefer funds of mining stocks as I don't have the time to cherry-pick a few mining stocks. Have a look at Tocqueville Gold ( MUTF:TGLDX ). Don't look at the charts because google.finance isn't properly re-invest the dividends for you.

But look at their total-return performace figures:

1 year 14.49%

3 year annualized 29.32%

5 year annualized 23.69%

Not too shabby.

However, if you still want bullion, I suggest GLD a gold tracker ETF traded on the NYSE.

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Posted

"Boat" & "Missed" are the two words that come to mind.

It's toppy. Way toppy. As is evidenced by Front page financial press stories about it's inherent value. Those with memories longer than goldfish will remember similar stories in the FT and other financials in December about black gold, and the resultant chatter. Oil is off over 10% since then.

Gold is also a negative yielding asset (costs to keep, as opposed to bonds with coupon, and stocks which (generally) provides divs), which means you need a good reason to want to go buy it.

I have recently taken the other side. I have the trade on via a UK bookie who credits my account with interest daily based on the cash amount equiv of Gold I am short. for that I place 10% margin on account with them. Gold will be up and down like a whore's drawers until the general market finds direction so ideal for trading, but I would rather do it from the short side right now.

My View. Long is wrong, but if you have to be, then at least do it via futures (preferably synthetically via a UK spread better). Easier to trade in & out and gambling winnings are tax free in the UK.

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Posted

I wish I had a crystal ball too. ^_^

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Posted

Mining stocks are more likely than gold itself to track their national indexes. If you think the euro will fall against the loonie or the rand, you could try mining stocks as a currency play (not recommended).

If you wouldn't buy debt when bond prices are high and equities when stock prices are high, why buy commodities or commodity-derived financial instruments when their prices are also high? Buy gold or gold-linked investments when no one is worried about inflation and you aren't overweight on other inflation hedges such as real estate and other hard assets.

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Posted

Aren't both the UK and German governments considering selling part of their national gold reserve while the price is high?

And wouldn't that push the price down?

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Posted

If one should invest in something physical then one good idea would be to invest in diamonds.

BTW: My boyfriend is a certified diamond grader.

His tips are as follows:

Do not buy it in a jewelry shop because of the mark up.

Only buy diamonds with a world wide recognised certificate e.g. DPL, HRD, AGS or GIA

Even if prices of diamonds would go down you still win the retail value by selling it on.

Stick to classic shapes i.e. round or square.

And stick to a certain quality.

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Posted

Update.

Since Feb 6th, Gold is up 10.97%

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Posted

up 11.49%

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Posted

Here's a quick rule of thumb: If something really is a good long term investment, people don't continue to post on message boards about their short term profits. They shut up, and very contently pour more of their own money into it and retire rich.

Pyramid schemes, on the other hand, do have people who behave this way. This is basically what gold is, since it has no intrinsic value, you have to continue to convince other people it does.

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Posted

:lol: You must be in that Boat & Missed group described by Stranger above...

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Posted

irrational exuberance perchance, or just typical stupidity buying at the top of a curve where the gains have already largely been realised and the only realistic place to go is down, at least in the short to medium time if not tomorrow.

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Posted

You can track the price of gold (and other precious metals, base metals and soft commodities) by investing in Exchange Traded Securities. It's the same as buying into a fund or shares in terms of how it works.

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Posted

Hi I would like some advice about changing euros to British pounds, not a huge amount, about 3K and I am thinking that my best bet is to buy gold with the euros as the money is savings. Where is the best place to buy gold here? I looked on ebay at coins but its a risk right?

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Posted

I find your question confusing: do you want to exchange currencies or do you want to buy gold? If you're looking at purchasing gold as an investment then I'd venture to suggest that investing in a bubble is a very high-risk strategy.

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