Buying gold & silver?

radderfire said:
... but not surprising. The Comex silver futures market was recently halted, and this is very suspicious considering all the failsafes and backups they have. This happened after clients started to stand for delivery on contracts, i.e. ask for physical delivery. The clients were rumoured to be Middle Eastern banks.
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ELI5?
 
koolpc said:
I bought quite a few gold coins recently. My local Asda were selling them.

Should i keep the gold wrappers as i eat all the chocolate?
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If you are into commodities, coca is propably a more sensible investment then gold right now, lol

But with a cocolate coin, it's the best of both worlds? ;)
 
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Chrisc said:
ELI5?
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think of it like a run on a bank - if all the people want to withdraw their cash at once its in big trouble.
Quite a lot of big players (i read it was mainly asian banks but i'm not sure anyone knows) want the physical silver that the trading certificates say they can have at any time - and of course thats a bit of a problem when you dont physically have enough silver.
 
aardvark said:
think of it like a run on a bank - if all the people want to withdraw their cash at once its in big trouble.
Quite a lot of big players (i read it was mainly asian banks but i'm not sure anyone knows) want the physical silver that the trading certificates say they can have at any time - and of course thats a bit of a problem when you dont physically have enough silver.
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Aaaahhhh, makes sense. Cheers
 
I stuck 150k of my companies cash reserves into gold and silver mid 2020, still sat on that now.

Accountant is encouraging me to pull the max amount out into my SIPP, i'm holding off on that due to multiple factors.
 
Silver is now $63 an ozt and rising. A confluence of industrial demand and monetary factors is causing a run-up in the price and production is inelastic. This is not financial advice, but buying silver mining and royalty stocks would be a good idea right now.
 
Loxa said:
Been looking at doin this myself for a while tbh
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i didnt get into it for the increase in value as such, although its certainly a welcomed by product.

Collecting the coins was the main appeal, unfortunately its getting a bit expensive now, so purchases have declined somewhat.
 
Chrisc said:
i didnt get into it for the increase in value as such, although its certainly a welcomed by product.

Collecting the coins was the main appeal, unfortunately its getting a bit expensive now, so purchases have declined somewhat.
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Yeah collecting coins is peaking my interest, some really nice looking ones
 
if the idea is to track the fortunes (or otherwise) of gold and silver, investing in one of the ETF/ETC is as good a way as any. Does not require holding any physical gold/silver, these investment instruments simply track the market price of gold/silver.
 
tangey said:
if the idea is to track the fortunes (or otherwise) of gold and silver, investing in one of the ETF/ETC is as good a way as any. Does not require holding any physical gold/silver, these investment instruments simply track the market price of gold/silver.
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The main issue with this, is that in the event of a severe financial crisis, you may find that the ETF/ETC is unable to meet its obligations, i.e. maybe it doesn't legally own as much precious metal as it says it does. If you get a real crunch in the financial system, an ETF/ETC won't protect you in the same way that physical gold or silver would.
 
radderfire said:
The main issue with this, is that in the event of a severe financial crisis, you may find that the ETF/ETC is unable to meet its obligations, i.e. maybe it doesn't legally own as much precious metal as it says it does. If you get a real crunch in the financial system, an ETF/ETC won't protect you in the same way that physical gold or silver would.
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I was suggesting it as a way of getting exposure to Gold/Silver prices from within an existing portfolio. Rather than setting up an account with a bullion holder, or actually purchasing the metal. I wasn't considering doomsday scenarios. Having said that I'd hope Invesco (the one I use) that has $1B in its physical silver ETC isn't pulling a fast one with both it's investors and it's physical bullion holder, Morgan Chase.
 
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tangey said:
I was suggesting it as a way of getting exposure to Gold/Silver prices from within an existing portfolio. Rather than setting up an account with a bullion holder, or actually purchasing the metal. I wasn't considering doomsday scenarios. Having said that I'd hope Invesco (the one I use) that has $1B in its physical silver ETC isn't pulling a fast one with both it's investors and it's physical bullion holder, Morgan Chase.
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It's convenience vs default risk.

If you look at what's happening in the Comex silver futures market right now, there is a strong suggestion that companies such as JP Morgan do not have sufficient silver to fulfil all futures delivery obligations if the customer stands for delivery.

The chance of default is low, but I wouldn't say it was impossible on certain instruments. Personally I wouldn't trust a bank to tell me how much silver it has, especially as I have no way of checking.

For silver investments, I would say silver coins is an interesting way to go. You do need a local coin dealer though for when you want to cash out, plus you have to store them, so it's not that convenient.
 
Gold coins have several advantages over silver for UK people. Unless you're stacking for fun it's better to go for gold.
 
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