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John L

Worth Investing On A Very Small Scale?

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As a relatively young person who was made redundant at the beginning of the "credit crunch" (or "Recession" as it used to be called before New Labour got their hands on the English language) and has only just returned to full time employment I have fairly limited funds for investment. However, based on the arguments on these forums and others it does seem that it would be worth having some of my savings held in precious metals. Would it be worthwhile buying sovereigns singly (at a rate of 1 every month or so) or would the margins involved when dealing with such quantities make this pointless?

I've also looked at investing in Silver but the high margins combined with VAT and CGT on any future sale have steered me back towards Gold - is there a worthwhile way of investing very small amounts in Silver?

Thanks for any advice you can provide,

John.

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As a relatively young person who was made redundant at the beginning of the "credit crunch" (or "Recession" as it used to be called before New Labour got their hands on the English language) and has only just returned to full time employment I have fairly limited funds for investment. However, based on the arguments on these forums and others it does seem that it would be worth having some of my savings held in precious metals. Would it be worthwhile buying sovereigns singly (at a rate of 1 every month or so) or would the margins involved when dealing with such quantities make this pointless?

I've also looked at investing in Silver but the high margins combined with VAT and CGT on any future sale have steered me back towards Gold - is there a worthwhile way of investing very small amounts in Silver?

Thanks for any advice you can provide,

John.

I think gold is in an even bigger bubble than property at the moment, and you should keep well clear of it.

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As a relatively young person who was made redundant at the beginning of the "credit crunch" (or "Recession" as it used to be called before New Labour got their hands on the English language) and has only just returned to full time employment I have fairly limited funds for investment. However, based on the arguments on these forums and others it does seem that it would be worth having some of my savings held in precious metals. Would it be worthwhile buying sovereigns singly (at a rate of 1 every month or so) or would the margins involved when dealing with such quantities make this pointless?

I've also looked at investing in Silver but the high margins combined with VAT and CGT on any future sale have steered me back towards Gold - is there a worthwhile way of investing very small amounts in Silver?

Thanks for any advice you can provide,

John.

buying what you can afford makes sense. If you can buy from a local coin guy and his prices are reasonable then one a month is fine. If buying from a bullion house/coin dealers like coininvest then buying single coins will get you on delivery each time which will drive up your overall average cost. Full sovs are better value than half sovs and carry less of a premium. Best to buy as much as you can afford, say 5 or 10 or so in one go when the price is right.

I would stick with coinage rather than bars, premiums are lower on bullion bars which is great but they are lower because fewer want them.

Premiums on silver make it more costly for us especially on 1 ounce coin. Personally, I would stick with 10 ounce or kilo bars to get best value.

Buying a bit a month sounds like a great savings plan but personally, I think it is worth gaining a sense of urgency here, buy what you can afford now and then add to it over time. I think that from next week on gold is going to rise substantially, you may get another shot at a dip in november though. I am ofcourse talking about buying at the best price but the fact is that if you have no gold at all then taking a longer term view, any price now will be a good price.

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What would you put your savings into instead or do you have complete faith in Sterling to hold it's value whilst the government are being fiscally irresponsible?

anyone that understands so little probably counts his credit cards as savings :lol:

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I do not trust pension schemes and banks for long term savings. I would buy some sovereigns soon as prices tend to be lowest in august. Set aside some money each month if you can afford to save, and buy sovereigns when the price dips, usually in the summer. Dont tell anyone except your nearest that you own gold.

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I think gold is in an even bigger bubble than property at the moment, and you should keep well clear of it.

Eh?

Got any charts or analysis to back this up?

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Eh?

Got any charts or analysis to back this up?

whadda you reckon?

I am certain that between us though, we could produce a thousand charts/reports that would blow him out of the water.

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I think everyone should have some investment in silver and gold if they can afford it. Buying a coin a month makes excellent sense. If you can afford more, then fine.

The way the price of PMs will go if the economy tanks badly will justify all the sacrifices to pay for the coins. A young person is also the most likely to see benefit from the gains as they get older. I certainly wish I had been a PM investor when sovereigns were £25 each.

A-coin-a-month will also gain the benefit of pound-cost averaging rather than trying to pick the bottom of a dip. (Although it's nice when you sometimes get it right).

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I think everyone should have some investment in silver and gold if they can afford it. Buying a coin a month makes excellent sense. If you can afford more, then fine.

The way the price of PMs will go if the economy tanks badly will justify all the sacrifices to pay for the coins. A young person is also the most likely to see benefit from the gains as they get older. I certainly wish I had been a PM investor when sovereigns were £25 each.

A-coin-a-month will also gain the benefit of pound-cost averaging rather than trying to pick the bottom of a dip. (Although it's nice when you sometimes get it right).

And what about investment in platinum?

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And what about investment in platinum?

Platinum is very expensive. Most of the same things apply as with gold, but:

a. It is not regarded as THE monetary metal, so it will not quite make the same gains as gold. It may gain more, it may gain less, but what I am trying to say is that it is not gold. I know this sounds obvious, but you should know it makes a difference.

b. Gold is not an industrial metal, except on a relatively very small scale. Platinum is heavily used in industry, so any recovery in the commodities market will benefit platinum.

c. If you are thinking of buying platinum, think even more about palladium, which is cheaper, has more potential upside, and is used for almost the same things. Palladium also may be bought heavily in future in connection with hydrogen fuel cells and fusion, but both of these uses are currently still dependant on serious amounts of expensive research. But you should nevertheless be aware of this.

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Platinum is very expensive. Most of the same things apply as with gold, but:

a. It is not regarded as THE monetary metal, so it will not quite make the same gains as gold. It may gain more, it may gain less, but what I am trying to say is that it is not gold. I know this sounds obvious, but you should know it makes a difference.

b. Gold is not an industrial metal, except on a relatively very small scale. Platinum is heavily used in industry, so any recovery in the commodities market will benefit platinum.

c. If you are thinking of buying platinum, think even more about palladium, which is cheaper, has more potential upside, and is used for almost the same things. Palladium also may be bought heavily in future in connection with hydrogen fuel cells and fusion, but both of these uses are currently still dependant on serious amounts of expensive research. But you should nevertheless be aware of this.

Thank you VERY MUCH!!!

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Do not neglect Silver.

Silver is relatively cheap, and has enormous upside potential if the industrial users panic. If the industrial users push the price up very high, then the investment herd (or rather, those who haven't been reading this and other fora) will pile in, pushing the price even higher.

As it is cheap, everyone should have at least a few silver coins. If you are buying with a view to taking profits on some of your holdings and keeping the rest as a long-term investment, then you might further consider buying some sterling silver sheet (1 mm thick). This will advance in price nearly the same as investment coin, but can be sold easily into the jewellery market whenever you wish, as they will use it as sheet stock, roll it thinner, or melt it for casting grain as they prefer.

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Do not neglect Silver.

Silver is relatively cheap, and has enormous upside potential if the industrial users panic. If the industrial users push the price up very high, then the investment herd (or rather, those who haven't been reading this and other fora) will pile in, pushing the price even higher.

As it is cheap, everyone should have at least a few silver coins. If you are buying with a view to taking profits on some of your holdings and keeping the rest as a long-term investment, then you might further consider buying some sterling silver sheet (1 mm thick). This will advance in price nearly the same as investment coin, but can be sold easily into the jewellery market whenever you wish, as they will use it as sheet stock, roll it thinner, or melt it for casting grain as they prefer.

I should watch the gsr before purchasing, silver is becoming expensive relative to gold and we could be approaching the point when it is time to sell silver and buy gold.

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Do not neglect Silver.

Silver is relatively cheap, and has enormous upside potential if the industrial users panic. If the industrial users push the price up very high, then the investment herd (or rather, those who haven't been reading this and other fora) will pile in, pushing the price even higher.

As it is cheap, everyone should have at least a few silver coins. If you are buying with a view to taking profits on some of your holdings and keeping the rest as a long-term investment, then you might further consider buying some sterling silver sheet (1 mm thick). This will advance in price nearly the same as investment coin, but can be sold easily into the jewellery market whenever you wish, as they will use it as sheet stock, roll it thinner, or melt it for casting grain as they prefer.

It seems to me, that gold has better upside potential, than silver.

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It seems to me, that gold has better upside potential, than silver.

I assume that you are thinking in terms of gold as money, in which case, you may be right. If the economy looks like Zimbabwe, then gold is the traditional safe-haven, and gold will lead the way. It may also drag silver higher.

If, however, the commodities market is not completely hammered by lack of demand, then silver demand may be driven by the big jewellers and industrial users, who have NO substitutes and a possibility of diminishing supplies. Panic-driven demand in silver, following a COMEX default, could make silver look far more attractive than gold, at least for some time until supply catches up with demand. (There are those who think supply cannot catch up with demand in silver, but that is a discussion for another thread).

It is most definitely not an accident that VAT has been removed from investment gold but not silver. The politicians and bankers do not think of silver to safeguard their personal wealth, they think of gold.

So you may well be right. I, however, think that silver is (in absolute terms) so cheap that it is folly not to have some. Ten proof crowns in .925 sterling silver at £99.95, or 10 Libertads for the price of one Sovereign, are investments within almost anyone's reach.

Why not buy some of each?

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If you're still sitting on the fence then the following article certainly makes for interesting reading - and points to China as a main driver for uplift for some time to come.

http://www.theepochtimes.com/n2/content/view/22918/

Son of Limahl

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So you may well be right. I, however, think that silver is (in absolute terms) so cheap that it is folly not to have some. Ten proof crowns in .925 sterling silver at £99.95, or 10 Libertads for the price of one Sovereign, are investments within almost anyone's reach.

Why not buy some of each?

Hi,can you reccommend anywhere to buy these Sterling Silver crowns Nis ?

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Hi,can you reccommend anywhere to buy these Sterling Silver crowns Nis ?

Sorry, should have added the link. I don't know of any cheaper way to buy sterling silver, except as jewellers' sheet or casting grain, and these, though very liquid if the price rises very high (because jewellers will always need stock) are both less desirable than coins. The coins also can be looked up on the internet and therefore don't need testing. And if TSHTF, then they are immediately useful as coins in a literal sense.

http://www.weightoncoin.co.uk/coins/index....;products_id=47

or

http://www.weightoncoin.co.uk/coins/index....roducts_id=1195

Richard is a first-class gentleman and very efficient.

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