Buying gold and silver as an investment and/or to wear

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wafter

I like steel bikes and I cannot lie..
Location
Oxford
Gold hasn't even been keeping up with inflation lately:
https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

Not very recently, but then what has? Gold has however doubled in value in the past 8 years and is now close to an all time high.

As others have said its value is often buoyed by economic uncertainty / risk and we've certainly had a lot of that recently. That said with rates at more sensible levels there are also other, potentially more accessible places to put your money. There's also the potential for some of the risk factors to abate (Ukraine, Gaza) however equally I think we're at the end of a debt-fuelled capitalist / consumptive epoch and reckon that the economic situation has the potential to become unrecognisibly different over coming decades. I think with the end of cheap / free money more value will be assigned to things of actual intrinsic worth, rather than over-inflated pseudo-assets and speculative unicorns.

Personally I view gold as a very long-term, possible SHFT / anti-inflation hedge. IMO short-term speculation is a mug's game; you'll lose on the spread unless there are large swings and you time it perfectly, while the relatively illiquid nature of physical gold makes it cumbersome to trade so not something you want to be doing regularly.

I don't know enough about the worth of items made from gold beyond their base scrap value so would suggest holding plain wafers. Those with more knowledge of coins, jewellery etc might feel differently.
 

welsh dragon

Thanks but no thanks. I think I'll pass.
Do you wear the rings WD?



I do. I don't see the point of having them if I'm not going to wear them. :okay:
 
OP
OP
Accy cyclist

Accy cyclist

Legendary Member
I'm not going to buy anymore gold items for a while. I have enough 'bling'. You should only wear one ring on each hand at the most, they say. I suppose that's not allowing for wedding and engagement ring combinations on the third finger of the left hand.
 
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OP
Accy cyclist

Accy cyclist

Legendary Member
This 14 karat, 10.4 gram ring is for sale in a local shop for £325. The current 14 karat gold price is £29.78 for weights of 101 to 500g, £28.51 for 21 to 100g and in the case of this ring £23.76 for 0 to 20g, which means the scrap value/price of the ring is £247.10. If I were to buy it it wouldn't be an investment as such as I'd be losing £77.90. But compare that to the current price of new 14 karat gold items and it's 'a bargain'.

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This new 14 karat 7.8 gram ring is reduced to £946.80 meaning you are paying £121.38 per gram for something if scrapped would give you £23.76 per gram. 🤔

https://www.diamondsbyme.co.uk/mens...st-price-oval-sven-2/?gad_source=1&gclid=Cj0K
 
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