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Guest Bart of Darkness

Buying Gold (and Hanging On To It!)

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Guest Bart of Darkness

I've been following the gold threads in this forum for a while and have decided to take the plunge and buy gold. Not for investment reasons but to try and preserve the value of at least some of my savings in case of a worst case scenario for the UK economy.

As MarkG says:

As far as I'm concerned, gold coins are a safety net, not an investment: you pay over the odds when you buy them and lose over the gold price when you sell them...but if things get really bad, a few gold coins in the safe could come in real handy.

I have decided to put about 25-30% of my savings into physical gold (Sovereigns, Britannias and some kruggerands for variety).

I would probably buy from http://www.goldline.co.uk and http://www.taxfreegold.co.uk

My main concern is preventing the government from being able to discover my gold and confiscate it. I would imagine that storing the gold in a safety deposit box in a bank is out as they would report the contents?

Also, I presume that buying gold by post (from places such as the two sites mentioned above) would also create records which the government could follow up?

Buy some goldmoney.com, this is based in Jersey. This way you don't get reported.

cgnao

What mainly worries me about this is:

Each GoldMoney goldgram® is held for you in allocated storage in an insured vault in London, England. When you buy goldgrams, you own pure gold in a secure vault.

And as Jersey isn't that far away, how safe is it from Uncle Gordon's clutches? I'm thinking of a worst case scenario where things really do go badly for the economy. Could the UK government confiscate gold in a Gold Money account (or slap a windfall tax on it?)

Sorry to sound a little paranoid but frankly, I don't trust Crash Gordon one bit! :angry:

Any advice and pointing out of possible pitfalls welcome.

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You do indeed sound paranoid!! What mechanism do you think they could legally use to confiscate your gold? the only analogy I can see is compulsory purchase of property. That said I would not put much past a Nu labour Govt. I'm thinking of buying gold related shares as a hedge against the rest of my interests, but I'm not confident of the direction of the stock market at the moment. Good luck anyway Bart.

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Oh, and another thing. I would still see gold as much as an investment as any other. Capital preservation is the first rule of investment in my book. Also, it seems to me, you are buying something of some value now with cash hedging that it may be worth more to you than cash in the future. I think you are covering your back in case thinks go pear shaped? - but this would still be an investment to my mind

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Guest Bart of Darkness
You do indeed sound paranoid!!

I know. Maybe it's because I'm not used to having savings of any great size (normally I'm a very happy go lucky chap).

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Guest absolutezero
What mechanism do you think they could legally use to confiscate your gold?

Send the boys round to take it from you by force if need be.

The Americans were doing it not so long ago.

They confiscated gold from individuals in the 30's and it was illegal to own gold as an individual in the US until 1974. (Info courtesy of Malco in the "gold Bull" thread.)

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They confiscated gold from individuals in the 30's and it was illegal to own gold as an individual in the US until 1974.

There was no gold confiscation in America that I'm aware of. The government banned gold ownership and told people to hand it in... which most did.

Equally, unless you're on the big list of gold hoarders in the UK for buying thousands of pounds worth at a time it's extremely unlikely you'll find a cop at the door to confiscate yours.

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Guest Bart of Darkness
it was illegal to own gold as an individual in the US until 1974

Now that's something I didn't know before. I think one one the other posters here has said that he owns gold partly because the (UK) government doesn't really want him to.

Equally, unless you're on the big list of gold hoarders in the UK for buying thousands of pounds worth at a time it's extremely unlikely you'll find a cop at the door to confiscate yours.

I'll definitely be considered small fry!

Edited by Bart of Darkness

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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