Gold Bullion as an investment ??

[BADGER.BRAD]

Hello all,

I invested some money in a second house a number of years ago , this was more to protect the value of my money rather than putting it in a bank an effectively losing value each year this has worked out really well nearly doubling my money in 5 years. I have since then been saving again and am now thinking of investing in some Gold bullion. But what do you think of this as a way of protecting my moneys value ? There is not enough for more property but I could add to the Gold each time I reach a certain amount of savings ! Has anyone done this ?

Thanks for you thoughts

 

[vickster]

Discussed last year
https://www.cyclechat.net/threads/gold-as-an-investment.259841/

 

[All uphill]

I am not a financial adviser.

No interest on gold.
Costs to store it safely.
It tends to go up in price during financial crises.

Sounds like too much of a gamble for me.

 

[BADGER.BRAD]

Thanks to both of you , I'm looking at losing at the moment 3% + of my moneys value each year if inflation remains the same, The ISA rate is just crap as you all know of course. ( Bang head on wall )

 

[vickster]

Thanks to both of you , I'm looking at losing at the moment 3% + of my moneys value each year if inflation remains the same, The ISA rate is just crap as you all know of course. ( Bang head on wall )

My Vanguard shares Isa is running at over 14% growth over the last 18 months. Clearly it fluctuates but it’s been over 9 all year pretty much

 

[Cycleops]

Because Ghana produces gold scammers often use this as a opportunity to con people into thinking they can sell you cheap gold.
I've seen many people scammed this way. Beware.

 

[cougie uk]

Steady on Auric.

Obv you should be in cryptocurrency or those NFTs.

 

[Profpointy]

Gold, like other commodities isn't really an "investment" but is a way of hedging against other true investments going south. It's a gamble really, and a gamble that the economy is going to deteriorate. A proper investment is in something that is intended to "create wealth" ie investing in business, property and such like. These can still fail, but overall, and on balance, there is likely to be a return.

Moreover, with things like gold, you need to be careful that you really have bought actual gold rather than paid money to a scam of some sort. Buying proper shares in a proper company, or index trackers in an ISA via a proper bank are more likely to have some real substance behind them even if they can still go down as well as up.

 

[Salty seadog]

Because Ghana produces gold scammers often use this as a opportunity to con people into thinking they can sell you cheap gold.
I've seen many people scammed this way. Beware.

You're missing a comma in there.

 

[Kingfisher101]

Ask Kenny Noye, he'll tell you.

 

[Arrowfoot]

There are 3 separate paradigms - speculation, investment and hedge. It often mixed up. Hopefully this helps.

Gold falls in the category of hedge. It is not investment grade but excellent as a hedge against inflation and considered a crisis commodity. Hence the long and close relationship with central bank when there are uncertain times.

Investment means to enhance one's wealth or assets. House, shares, commercial properties such as shop houses, buying into a business etc. Historically shares (equity) have outperformed all instrument of investments. This is where fund managers such as Vanguard comes in. You leave it to a proven pro who charges you a fee.

Speculation is punting on price movement of shares, forex or even property (buying and selling) during a boom.

All 3 can give you exceptional returns if your timing is right and luck kicks in. Investment instruments however is the consistent performer.

There is a reason why sovereign funds of the World, Pensions funds and portfolios of the rich hold shares, only retreating to cash and gold at times of uncertainty.

If you want to keep up with inflation buy gold. If you to want increase your wealth then shares and property.

 

[BADGER.BRAD]

I do have some shares the day After I brought them they halved in value a week later they went back up to 90% of the original value and have stayed there for the past 10 years. My problem is I mistrust anyone when it comes to my money. The moral of that story is don't give me any money to invest ! Can someone give me an idea of prices for investment management ? How about Gilts ?

 

[vickster]

Vanguard, 0.15% fee per annum on S&S ISA
https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa

same on standard shares account (obvs taxable)
https://www.vanguardinvestor.co.uk/investing-explained/general-investment-account

 

[PK99]

Gold is not something for an amateur investor to get involved in.

 

[nickyboy]

Gold is not something for an amateur investor to get involved in.


View attachment 623072

Exactly. The idea that it makes a good hedge against inflation is shown to be nonsense by the graph. It's a safe haven asset; gold goes up in price when investors worry about global financial systems and then drops when they don't

If you want to hedge inflation, invest in residential property, or a fund that specialises in residential property