as gold has fallen/falling in price ,are there any knowledgeable chaps on here that can advise whether to buy bars or coins for a long term investment..

i'm thinking 1oz credit suisse bars but opinions are welcome.. ... - .- -.




Y. O. L. O.
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Stan, that is such a minefield as it depends on a great many other factors. I used to work in dealing rooms in the late 90's and found lots of it hard to understand even when in amongst it.

One thing I have found to be common is that the price of gold goes up when the markets lose faith in other currency, e.g. Sterling, USD, Commodities, options and <other>, and conversely the price of gold goes down when faith in other mediums is restored. I think it gets treated like a safe haven when global economies are going to rat sh.1t.

But, take advice from those more knowledgeable than I.

thanks dom..
i've done a fair bit of reading on the web and you're right ,it is kinda complicated but i now understand terms like 'premium over spot'..
its just a thought at the moment but it seems better having gold nugget's in the breadbin than screwed up £20 notes under the mattress..  ... - .- -.




Y. O. L. O.
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The problem with buying gold is you pay a premium, say 10%. So a Sovereign "costs" about £187.00 today.

However if you were to sell the same sovereign today you would be offered £140 - £150 from a gold buyer.

The gold price must rise significantly just to cover the 30% price difference before you are back in the money.

The above is assuming you are looking to invest up to say £100k.

The margins start to close when looking at bigger numbers.

If you are able to purchase at scrap (generally 20% less than the gold price) then you have a better chance of making some money, assuming the price rises.

However you then have a safe full of nasty dirty 9ct junk!

thanks paul.i expect to pay a premium but when the price goes up [hopefully] in 5/10 years time ,this will cover that plus i hope to make a profit.. ... - .- -.




Y. O. L. O.
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Stan, are bricks & mortar not making better returns than gold again now? Obviously dependant on your budget, but I believe deposits on buy to let's can be quite low...

You can buy gold ETFs (exchange traded funds) rather than gold bars. They buy gold on your behalf effectively. This means you don't need to worry about storing the gold yourself (which either has risks or significant costs). I think personally, this is what I would do rather than hold physical gold (YMMV). You may be able to pop one if these in an ISA.

However it opens another minefield. How safe is the gold at the ETF? Some just buy gold derivatives - essentially a bank promising to deliver them the gold. If the bank goes bust (which is probably when you most want your gold) then the fund will go bust too. Look therefore for ETFs that hold the physical gold (IMHO).

Also be aware that governments have outlawed holding gold in the past. Gold is seen as competition to fiat currencies. Governments don't always like that - I would not be surprised if the hacking of Bitcoin was state-sponsored [/tin foil hat] - especially at a time when Central banks are printing money (which they are now).

Be aware that there could be a Capital Gains Tax charge if you make money on gold (bullion or coins). If you buy UK products some are exempt from this.

I was in Australia and bought one ingot that was not able to be collected at the time so was posted to me and ended up paying 20% import VAT. I bought an identical ingot here at the same basic price and did not have to pay any VAT ! mole

craig, its not a large investment so bricks and mortar is out and tbh i would never trust any etf company mr mong
capital gains tax will not be applicable on the small amount i would invest in according to what i have read..its strange that silver has vat applied whereas gold has not .. ... - .- -.




Y. O. L. O.
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Stan - the new Goldfinger.



'You expect me to talk?'

'No Mr Bond, I expect you to die!'

Admin note: this post has had its images recovered from a money grabbing photo hosting site and reinstated

'goldfinger nail' more like david, i aint got that much money...  ... - .- -.




Y. O. L. O.
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Good, I don't want my testicles lasered.

 ... - .- -.




Y. O. L. O.
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Stan, investing 50k in gold will not bring you what 50k in a classic or vintage car will bring you in short term. China has been buying enormous amounts of physical gold for two years now, goldmines are closing down because of the lack of profitability but the market demand is still strong. The high end advisors have predicted a big price raise at the end of the year. But they also predicted a breakdown of the euro last april. Successful youngsters in Germany, Holland, India and China have been buying large amounts of physical gold, but the price is down. .?? It means the price is artificially kept low, maybe to give the local governments the possibility to buy and to give the US the chance to buy back the gold they had in their safes for foreign governments. The US does not have that gold anymore and States like Germany, France ,Holland, the UK have demanded to return their gold in to their own safes. The US have an arrangement now with Germany to return it over a period of 10 years. They are negotiating the same kind of contracts with other countries. So somewhere in the future the price should rocket, but I would not bet on one horse and I would compare prices in different countries. Unicorn goldbars are cheaper F.E. in Holland as in France and they deliver at your door. Whatever you do do not buy gold on paper, buy physical gold for your own safe or for under your bed..
Well...That's what I think..