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AwaitingFairPrices

Investing In Gold

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There been a lot of mentions of Gold in our main House Prices forum, and I've been looking into the easiet way to invest in Gold as a private investor.

The 2 easiest way are as follows:

1. Visit a Gold dealer and but it OTC (Over the Counter). See ATS Bullion

2. Buy a traded security.

I've have focused on option 2 as it is the most liquid form and does not involve having to travel to London.

GBS (Gold Bullion Securities)

Gold Bullion Securities are traded on the London Stock Exchange(LSE) under the ticker symbol GBS. Information on them and their international equivalents(USA/AUS/FRANCE/RSA) can be found at http://www.exchangetradedgold.com/. It was created in association with the World Gold Council, and more Gold information can be obtained through them at http://www.gold.org/.

GBS is traded on the LSE just like a normal share, see Yahoo GBS Quote, and each share gives the investor an entitlement to 1/10 oz of Gold.

I have not purchased any yet, but do intend to complete my research and make some aquisitions if everything pans out ok.

If you are a holder of GBS and can offer any advice, feedback or links to further related information please post them. I am sure there are a lot of interested members.

AFP

(p.s I will edit this post as carry out my research)

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Hi

I've got some GBS as part of my gold portfolio. Each share is worth 1/10 oz of gold, and they're extremly easy to buy and sell. They aren't allocated though, so in the event of some financial calamity you've no guarantee you'll get your money. I've got 1/3 in physical, 1/3 in Goldmoney, 1/3 in GBS.

I'm also transferring my stakeholder pensions into a SIPP, which will allow me to hold gold via GBS.

Regards,

crude

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1. Visit a Gold dealer and but it OTC (Over the Counter). See ATS Bullion

Hmm, I like this option - shame they don't list prices dynamically - looks like you have to get a quote beforehand...

does not involve having to travel to London.

http://www.atsbullion.com/How-to-Buy-amp-Sell-Gold-sp-2.html

"You can either bring your gold into our offices or send it by Special Delivery through the Post Office"

Edited by dnd

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I wonder how much cash are held on the premises bullion traders like ATS

if i walked in £10,000 worth of gold bullion, do they hand over the cash on the same day???

I guess they take write out cheques, only hope they dont bounce after i leave the offices

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GBS are NOT worth 1/10th of the price of gold. GBS takes a small percentage once a year and is always quoted slightly below the price of gold. So each share is actually slightly less than 1/10th.

You're money is theoretically guaranteed because GBS promise (?) to store physical gold to meet their obligations on a 100% coverage basis. There are restrictions on converting your shares to physical gold though.

Physical gold can be purchased special delivery by mail order. It can be just as liquid, because you phone up, get a price fixed and then send the gold back and the same to purchase. The downside is the charges are usually about 5% but unlike GBS there is no annual charge and the government find it much more difficult to trace physical gold which is why they demand identities for anyone who purchases more than £5,000 worth or more than £10,000 in any year.

Gold is NOT seasonal as it is unaffected by the weather and does not grow on trees.

Charts are best for showing how stupid people are. Often stupidity is inversely proportional to the copiousness of the crapulence.

Almost nobody bought Brown's stakeholder pensions because almost everyone realised they were a rip-off. In fact all pensions are rip-offs but stakeholder pensions are particularly obvious.

Edited by Goldmember

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Awaiting Fair Prices,

there is a third way. An account holding allocated gold for you in bailment. This gold is legally yours, it is not at risk if the company goes under (the liquidators return it to you), and the gold retains its status as good delivery when you come to sell. Charges and insurance are typically very small.

I would say each method depends upon your aims.

Unallocated has no long term gaurantees

Allocated might be vulnerable to then whims of government

Physical is inconvenient

Below is an allocated account link. The site has lots of background info

Mark

Bullion Vault

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Personally, I wouldn't invest in something with such a small market as gold if there isn't 100% backing with the physical stuff.

The idea behind gold is not so much to make money (unless you’re a trader) but to keep the purchasing power of what cash you already have. The ETF promises to pay you gold, but if there’s a squeeze on the market, they may not have any to sell to give you your money back. I’d go for gold coins or an account like http://goldmoney.com, which is backed 100% with bullion. You’d also be doing other holders of gold a service, as will less physical bullion on the market, there’s more upwards pressure on the price.

These aren’t all my thoughts BTW, just a summary of what I’ve been reading the past few months.

Edited by MEtallic

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A thought that has been going through my mind for a while..... OK, I have a little gold/silver in Goldmoney, not much yet as I see it no more than a punt at the moment.

Answer me this, and I believe this question has arisen here before, if the $ plummets and Au/Ag go ballistic and we get $2000K oz for example, what will you be able to do with the $'s? ie Just how much £ will it buy? Wouldn't GBP be affected in a similar manner to the $? Will banks even want to exchange $'s?

Hope I've managed to get my question over.

Frank

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A thought that has been going through my mind for a while..... OK, I have a little gold/silver in Goldmoney, not much yet as I see it no more than a punt at the moment.

Answer me this, and I believe this question has arisen here before, if the $ plummets and Au/Ag go ballistic and we get $2000K oz for example, what will you be able to do with the $'s? ie Just how much £ will it buy? Wouldn't GBP be affected in a similar manner to the $? Will banks even want to exchange $'s?

Hope I've managed to get my question over.

Frank

it really depends what the price is traded against,and who you are competing for resources with.

the £ may keep level pegging with the US$,but if everybody else in the world buys euro's then the dollar depreciates,and stuff like wheat,cattle,orange juice etc will go up both ways(increased global demand PLUS currency debasement)

it doesn't mean you'll get rich quick...it just preserves better what you have.......unless the other major world currencies decide they are going to follow suit!!!!

as we live in a major world currency area,such a scenario is quite desireable for us.

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  • 301 Brexit, House prices and Summer 2020

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      • down 5% +
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      • Even
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      • up 5%



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