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House of Lords

Gold

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OK, I've now firmly moved to the I need some gold camp. They have officially opted to try and hyperinflate their way out of this.

I thought every 3rd post on here was how to buy / what to buy but on searching I couldn't see anthing that useful.

Anyone able to say what's best (coins, lumps, brick-type things etc :P) - has to be physical gold though, not interested in funny-money paper investments.

Also, what about storage? Tempted to hide it around the house but the other half isn't particularly keen on it.

Proably going to pop about 20k in.

Thanks

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[quote name='House of Lords' post='735777' date='Aug 17 2007, 02:17 PM']OK, I've now firmly moved to the I need some gold camp. They have officially opted to try and hyperinflate their way out of this.

I thought every 3rd post on here was how to buy / what to buy but on searching I couldn't see anthing that useful.

Anyone able to say what's best (coins, lumps, brick-type things etc :P) - has to be physical gold though, not interested in funny-money paper investments.

Also, what about storage? Tempted to hide it around the house but the other half isn't particularly keen on it.

Proably going to pop about 20k in.

Thanks[/quote]
There a recession sweeping across Devon. Best keep the cash in hand in case you need it.

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[quote name='House of Lords' post='735777' date='Aug 17 2007, 02:17 PM']OK, I've now firmly moved to the I need some gold camp. They have officially opted to try and hyperinflate their way out of this.

I thought every 3rd post on here was how to buy / what to buy but on searching I couldn't see anthing that useful.

Anyone able to say what's best (coins, lumps, brick-type things etc :P) - has to be physical gold though, not interested in funny-money paper investments.

Also, what about storage? Tempted to hide it around the house but the other half isn't particularly keen on it.

Proably going to pop about 20k in.

Thanks[/quote]
With 20k you have potential CGT issues so you might want to consider British bullion coins that are legal tender (eg Britannias). Or if you're simply looking for the most gold for your money, look at krugerrands.

You could get a couple of 1000g bars, currently just shy of 11k on goldline at the moment I make to be £343 per ounce. Krugs are currently £345 per ounce. For such a low premium over bars, I'd personally take the coins as I think they'd be easier to sell.

Bear in mind that gold dealers are legally obliged to report large purchases to the authorities.

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[quote name='House of Lords' post='735777' date='Aug 17 2007, 02:17 PM']OK, I've now firmly moved to the I need some gold camp. They have officially opted to try and hyperinflate their way out of this.

I thought every 3rd post on here was how to buy / what to buy but on searching I couldn't see anthing that useful.

Anyone able to say what's best (coins, lumps, brick-type things etc :P) - has to be physical gold though, not interested in funny-money paper investments.

Also, what about storage? Tempted to hide it around the house but the other half isn't particularly keen on it.

Proably going to pop about 20k in.

Thanks[/quote]

I use ATS Bullion personally, find they are very good, quick and their premium is only 5% on Krugers.

Read this I found on Kitco, good reason to buy. [url="http://www.kitco.com/ind/fekete/aug152007.html"]Link[/url]

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Check out the gold thread, lots of info there. I would suggest Sovereigns or Britannias for CGT reasons, for lower premiums Krugerrands. If you don't want to store at places you have access to, use services of BullionVault or Goldmoney.

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[quote name='Tuffers' post='735823' date='Aug 17 2007, 02:57 PM']Isn't the price of gold falling as we speak?[/quote]
The price of gold usually falls, or it rises. It changes quite often directions.

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My recollection is that single purchases under £5000 need not be reported. Annual purchases over £10000 from the same dealer have to be reported.

You could consider bullionvault.com or the Perth mint scheme as alternative ways of holding assigned gold.

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Gold seems to be priced in dollars.

Do we have to take fx considerations between gbp and usd into consideration, or is it priced to gbp independently? Edited by Kingmaker

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[quote name='Kingmaker' post='735830' date='Aug 17 2007, 03:01 PM']Gold seems to be priced in dollars.

Do we have to take fx considerations between gbp and usd into consideration, or is it priced to gbp independently?[/quote]

Any serious deviation in the gbp to us price would lead to immediate arbitrage opportunities. If the GBP dropped relative to the dollar whilst gold held at a constant value, would mean an increase in the value of your gold wrt to the GBP, and conversely.

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[quote name='D'oh' post='735838' date='Aug 17 2007, 03:08 PM']Any serious deviation in the gbp to us price would lead to immediate arbitrage opportunities. If the GBP dropped relative to the dollar whilst gold held at a constant value, would mean an increase in the value of your gold wrt to the GBP, and conversely.[/quote]
Law of one price - if you know PoG in USD and PoG in GBP, you know the USDGBP exchange rate.

But, yes, the USD sort of dominates gold, they're the largest holders and the empire presently in charge. So they need to make sure USD looks good against gold. If they fail... -> doo-doo.

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[quote name='Tuffers' post='735823' date='Aug 17 2007, 02:57 PM']Isn't the price of gold falling as we speak?[/quote]

In order to fund outflows, good assets that are easily turned into cash (i.e. gold) are being sold.

This is depressing the market. I will be buying gold on Monday.

I think they're going to try to keep lying about inflation!

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[quote name='Lord Lister' post='735820' date='Aug 17 2007, 02:55 PM']I use ATS Bullion personally, find they are very good, quick and their[b] premium is only 5%[/b] on Krugers.
[url="http://www.kitco.com/ind/fekete/aug152007.html"]Link[/url][/quote]
:o

So your 20k becomes 19k at a stroke. Are the costs the same when you sell? Edited by muttley

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[quote name='muttley' post='735848' date='Aug 17 2007, 03:17 PM']So your 20k becomes 19k at a stroke.[/quote]
This applies to any commodity that is physically delivered. I wonder what the premium on flour is, compared to the price of wheat? Surely much more than 5%. Yet nobody feels they have lost £££ by buying flour. If your neighbour runs short and borrows some in order to bake a loaf, she will reimburse you at (minimum) the processed+packaged price, not the commodity price, because she recognises that the flour contains added value.

[quote]Are the costs the same when you sell?[/quote]
If you go to a dealer then clearly they will operate a spread. They're providing a service, after all.

(typo) Edited by huw

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[quote name='D'oh' post='735829' date='Aug 17 2007, 02:00 PM']My recollection is that single purchases under £5000 need not be reported. Annual purchases over £10000 from the same dealer have to be reported.

You could consider bullionvault.com or the Perth mint scheme as alternative ways of holding assigned gold.[/quote]


Does Bullionvault or Goldmoney report purchases over these limits as they are dealers and your are holding the physical gold in an allocated account ? Cannot find anything on their website. Edited by hollogramme

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[quote name='huw' post='735937' date='Aug 17 2007, 04:29 PM']This applies to any commodity that is physically delivered. I wonder what the premium on flour is, compared to the price of wheat? Surely much more than 5%. Yet nobody feels they have lost £££ by buying flour. If your neighbour runs short and borrows some in order to bake a loaf, she will reimburse you at (minimum) the processed+packaged price, not the commodity price, because she recognises that the flour contains added value.[/quote]

That's all well and good if you are using your gold to bake a cake, but it is meant to be an investment vehicle. With these sort of premiums the gold price has to rise by +5% just for you to break even.

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[quote name='muttley' post='736009' date='Aug 17 2007, 05:24 PM']That's all well and good if you are using your gold to bake a cake[/quote]

don't give Goldfinger any ideas... he'd gold-plate his backside if he could ;)

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[quote name='muttley' post='736009' date='Aug 17 2007, 05:24 PM']That's all well and good if you are using your gold to bake a cake, but it is meant to be an investment vehicle. With these sort of premiums the gold price has to rise by +5% just for you to break even.[/quote]
My point was that striking a lump of gold or silver into a 1-oz .999 coin adds value over and above the raw bullion content, and that value persists when you come to re-sell. If you look on ebay, you will find that the premium is often higher than what Bairds or Chard charges (some people seem to make a business of re-selling Bairds bars).

If I simply wanted to speculate I'd go for an allocated gold account ... but at the end of the day, that's still paper (or electrons) with the words 'I promise to pay...' printed on it.

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[quote name='muttley' post='736009' date='Aug 17 2007, 05:24 PM']That's all well and good if you are using your gold to bake a cake, but it is meant to be an investment vehicle. With these sort of premiums the gold price has to rise by +5% just for you to break even.[/quote]
Instead, to be safe in the current/coming turnoils you could invest in ... in ... ... wait ... ... in silver! Or gold, of course. Darn it, I guess for a little safety the 5% don't seem that much.

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[quote name='muttley' post='735848' date='Aug 17 2007, 03:17 PM']So your 20k becomes 19k at a stroke. Are the costs the same when you sell?[/quote]
From what I can remember from various gold threads, you buy above the current (spot) price and sell below that price.

[quote name='muttley' post='736009' date='Aug 17 2007, 05:24 PM']That's all well and good if you are using your gold to bake a cake, but it is meant to be an investment vehicle. With these sort of premiums the gold price has to rise by +5% just for you to break even.[/quote]
Pity the guys who bought at $740 an ounce last year!

I wouldn't consider buying gold as an investement (it could work out as one--just ask RB ;) ). If I bought gold I'd see it more as insurance against the current global financial system going up the spout (or down the drain).

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[quote name='Timil' post='736097' date='Aug 17 2007, 07:06 PM']As regards Sovs what buy older or newer or are there premium years.[/quote]
From a quick (unscienfific) look on Goldline, it seems that the 2007 sov and the Victoria YH (young head) sov are more expensive than the others. All the others are £86.00 for a full sov (Goldline prices).

[url="http://www.goldline.co.uk/goldlinedev/GC/Global/GLBullionCoinsCentre.ghtml"]Link[/url].

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I would nt allocate too much to gold. Its really an insurance - and funds that you wont need to access straight away.

Its like buying a house as a pension - you hold onto it for around 10 years or more [and forget about it]

Inflation even at minimal levels for the next ten years mean your wealth should be at least preseved + a bit more.



You want to actually make money in gold? Then you need to buy gold on leverage.....

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[quote name='Tuffers' post='735823' date='Aug 17 2007, 02:57 PM']Isn't the price of gold falling as we speak?[/quote]
now now, don't spoil it for them

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