Gold 
A year or two (or more) ago, sure, but surely the bubble has to burst soon.
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What to do with £10k?
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Posted 6 months ago #
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I'm not sure it will burst any time soon. Not whilst interest rates are at rock bottom, currency is constantly devaluing and there's no confidence in governments ability to service their bonds and debts.
The media and ordinary folk in the street have mostly not even heard of investing in Gold. I told a couple of friends I had invested and they looked at me like I was completely crazy. If the media catch on to further Gold rises, then we could be in for a big bubble. A bit like what happened with houses ten years back although probably not on quite the same scale. After all you can't live in a Gold house can you? Unless you're a 3rd world dictator of course.
Of course I could be totally wrong but I'm not planning on selling mine at the moment anyway. The government can print as many more pounds as they like, turning your wallet into worthless bits of paper. But they can't mine lots more Gold any time soon.
Posted 6 months ago # -
Have you not been reading todays earlier thread
For investment advice take a trip to the Zoo and head for the monkey enclosure
Posted 6 months ago # -
Northernstar, I agree with some of your points, but from what i've gathered investing in gold has been very fashionable/popular in the USA basically since the Tea Party movement kicked off. Enough so to form a bubble in my opinion.
Posted 6 months ago # -
It's all relative. I have safe money in other stuff, ten-year assurance schemes, ISAs etc, I've exhausted most of the 'normal' low-risk saving methods that would appeal to me. 6.5k has gone on gold split between London and Zurich, 1k on silver. What's the worst that can happen, I lose the equivalent of the cost of a night out before bailing out? What's the alternative, lose money anyway as the best common saving rates are nearly 3% below inflation. If I do lose out, the other £2.5 might go on black or red...NB probably shouldn't mention that I did work for HSBC for nine years in one of their international branches doing import/export doc credits, mostly involving arguing discrepancies with Nigerian and Indian banks. Irony is that they paid a pittance so I never had reason to ask my peers there for investment advice.
Posted 6 months ago # -
I'm no expert but if I was going to invest some money in metals it would be physical. Aren't places like BV all paper? Not sure buying metal ETFs is any better than keeping your money in sterling, if the s**t hits the fan then ETFs can be confiscated/defaulted on quite easily I'd imagine.
Buy krugerrands and hide them somewhere!
Posted 6 months ago # -
BV deal in physical assets. You're right though, most others are paper.
Posted 6 months ago # -
Is Gold in a bubble? probably yes - unless you listen of to some experts who seem to think that today's prices are the new norm, and it will go much, higher. No-one really know though at the end of the day. Also which point in the bubble are we? Near the middle or near the top? Again no-one knows.
Where else can you put your money anyway? I have some Premium Bonds. Very safe but the odd £25 win is a pittance really. I have a savings account but again even on a good rate this is getting 3% before tax. I also bought some shares in BP a while back just after their value had plummeted. These have done very nicely but the stockmarket is so volatile and nervous at the moment that any gains could be wiped out an a matter of days. The OP could have bought a house with his 10K deposit and then seen all of his deposit get lost as houses drop in value over the coming year.
So Gold seems a good and safe alternative and there seems to be real returns to be made. The sign's I'm using to sell my Gold are:
A major improvement in confidence in the global and European economy.
A rise in UK interest rates.
These two things I suspect could bring about an end to the Gold bubble as investors faith in currency, binds and other investments starts to return.
Posted 6 months ago # -
With BV you actually buy real Gold, that sits in a vault either in London, New York or Switzerland. BV look after it for you and charge you a small storage fee. Plus they charge a small fee every time you buy/sell.
It's easy peasy and no hastle at all. You can buy/sell at any time and they send regular statements via email.
Posted 6 months ago # -
One other point - while you may see a return (or loss) on gold/silver, historically it's not been seen as an investment vehicle in the traditional sense. More of a return OF your capital rather than a return ON it, which is why it does so well in times of economic uncertainty.
Posted 6 months ago # -
Yes - gold is a safe haven and that's why it's currently doing so well.
Unlike a company, a bank or a government, gold can't go bust.
Posted 6 months ago # -
Posted 6 months ago # -
allthepies - Member
£8K on hookers, drugs and booze. Waste the other £2K.
Posted 6 months ago # -
I would have serious serious concerns over BV
Who regulates them? Who to says they have actually bought your gold let alone holding it.
There are reasons why you have to jump through a few hoops to open a UK trading account with your bank, stockbroker etc.
The hoops are there to protect you the investor.
Fill in an online form, then just send your money over…. madness
What happenings if they go bust?
Serious please please take your monies out
Posted 6 months ago # -
So can you go to BV and ask to see your little pile of gold?
Posted 6 months ago # -
I would have serious serious concerns over BV
Founded on what perhaps? Check out the stats yourself and I think you will find that they are a reputable company. Even won a Queens Award for Enterprise and Innovation in 2009.
I had to jump through more hoops setting up an account with BV than I did through Barclay's when setting up a share trading account. BV wanted passport scans and everything.
Anyway I guess you'll have to make your own mind up. If you'd rather keep your cash under the mattress or in one of the bailed out banks that may soon go tits up then please feel free. I bet it would take the government a minimum of 6 months but probably far longer to cough up and stand good on their deposit protection scheme - provided of course they can afford it!
Posted 6 months ago # -
cheburashka, does it feel weird that your initial investment has decreased in value by 2% already?
Posted 6 months ago # -
Thanks for pointing that out... I had noticed, yes.
It's just a blip...
Posted 6 months ago # -
I agree with Northern Star's sentiments and the only reason gold is not sky rocketing right now is that banks are having to sell gold as people withdraw their money the below inflation returns their investments are offering right now.
I put about 7 grand into gold in an ISA when it was worth $700/oz: It's now worth almost $1800 tax free. Got my pension in there in a SIPP.
Invested via Hargreaves Landsdowne as their fees are miniscule and I can buy and sell at the drop of a hat online.
I reckon gold will go to $2000 by the end of the year..I might sell then and re-buy if it drops a couple of hundred...Posted 6 months ago # -
Eggs
Basket?Posted 6 months ago # -
I have some magic beans for sale, should yield golden egg's and gold is a good investment..
pm me.Posted 6 months ago #
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