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Who's Buying Gold

Discussion in 'Speaker's Corner' started by fester, Feb 4, 2009.

  1. El Pew

    Wise Guy

    Joined: Sep 1, 2009

    Posts: 1,053

    I buy funds, I really like the HSBC index funds because their Total Expense Ration is so low (0.27% for the UK and European). I go for as broad a market as possible so FTSE All-Share and S&P 500 rather than FTSE100 and Dow, plus wide ranging Pacific (China, Taiwan, Australia etc) and EM (Brazil, India etc) index funds. There's plenty of research out there that shows that most fund managers and active investors fail to beat the market, so you might as well buy the market - hence I only bother with index funds, plus they tend to have the lowest charges. I've contemplated switching to ETFs rather than funds because the expenses can be even lower, but that means switching my accounts over to other providers to get the best deal which in itself can incur costs.

    Bond indexing isn't as popular in the UK which is a pain, but you can do so with ETFs. The idea with these is to find an index or fund which invests in shorter term bonds, i.e. 10 years or less, so you don't get locked into a low interest rate for 20-30 years. Again, diversify across companies and governments.

    Diversify, re-invest all income, invest regulary, rebalance. Come back in 40 years and you have a huge pot of money, in theory at least. It's not glamorous, and it won't make me rich, but it'll give me a comfortable life and retirement.
     
  2. hittman

    Wise Guy

    Joined: May 17, 2003

    Posts: 1,594

    Dumb question but for people who have invested in Gold, did you use an online site or via a bank? can you suggest reputable websites?

    Thanks,
     
  3. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    I hold gold and silver in many different forms and ways for different purposes.When I buy, I buy with the thought of how and to whom can this be sold to and what is the margin.

    For an on simple online banking style account there is Goldmoney and BullionVault

    If you what coins and physical silver that's where the fun really starts.
     
    Last edited: May 29, 2011
  4. hittman

    Wise Guy

    Joined: May 17, 2003

    Posts: 1,594

    Thanks. I have heard of these two websites. What are your experiences using Goldmoney and BullionVault?
     
  5. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    They do what it says on the box.
     
  6. hittman

    Wise Guy

    Joined: May 17, 2003

    Posts: 1,594

    Ok thanks. So no bad experiences with them then?
     
  7. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    The registration requires jumping though a lot of hoops because of anti-money laundering laws .It's a bit like getting a passport only the only the witness to your identity has to be in the profession of finance and registered with a professional body or the field of law.My doctor was not good enough so got a returned form.I had to get a solicitor who had to put a copy of his certification with the form.

    Worth the trouble for the instant liquidity but coin's scrap and antique silver also have many advantages.
     
    Last edited: May 30, 2011
  8. hittman

    Wise Guy

    Joined: May 17, 2003

    Posts: 1,594

    Ok thanks for the feedback :)
     
  9. drak3

    Wise Guy

    Joined: Jan 26, 2006

    Posts: 1,509

    I own coins. Both because they "look and feel more valuable" compared to the fiat notes we have and also because nothing beats physical ownership. Funds and other products I never liked as there is no guarantee when EVERYONE asks for the shiny metal at the same time there will be enough liquidity to meet the demand. Price will end up going higher in my opinion as they struggle to meet demand and at the end capitulate. POTENTIALLY, whom owns the physical metal gets an even higher return with zero risk. My view of course ...

    PS: Ofcourse then there is the problem of securing the metal, but for me the solution is a secure slot in a bank vault of which the contents remain my property irrespective of whatever happens to the bank; i.e. if they close shop they simply "can no longer offer the service and return the contents".
     
    Last edited: Jun 13, 2011
  10. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    I couldn't agree more about buying physical.It's also the only way to buy metal under spot price to remove any margin.The last metal I bought was last week 5.7 ozt of hallmarked sterling silver and pre 1918 coins for £72.5 at a local auction.The scrape price for this is over £100:D
     
    Last edited: Jun 19, 2011
  11. Sampsy

    Hitman

    Joined: Mar 31, 2010

    Posts: 762

    Gold was an obvious buy in 2008 / 09 but I really don't think that the prices will stay high forever.
     
  12. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    I think a better way to look at it is when do you think you paper promises will start to buy you more food or fuel I think my gold will continue to maintain it's percussing power for the foreseeable future.
     
  13. Sampsy

    Hitman

    Joined: Mar 31, 2010

    Posts: 762

    I do not. People bought gold because it is relatively stable, not wanting their savings to depreciate and wanting to avoid the volatility of the stock market. If the economy recovers, it is smarter to switch back to stocks thus causing the price of gold to fall.
     
  14. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    That makes sense.
    Just a couple of questions are you or have you been gold owner and how and when do you think this recovery will happen?
     
    Last edited: Jun 19, 2011
  15. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    dp
     
  16. Valentino

    PermaBanned

    Joined: Nov 7, 2010

    Posts: 1,150

    If you're buying gold as a way of protecting yourself from future financial meltdown then you better have it in physical form, having it as a few digital numbers on an internet page is dodgy. Come the financial meltdown these businesses will almost certainly 'lose' their clients accounts meaning you actually have no gold. Only way of doing it like that would be to spread your money across different economies. So for example, have some gold in USA, UK, Europe, Japan, China, so if one goes and decides to 'delete' your gold, hopefully other economies haven't broken and your gold with them is still fine and dandy.
     
  17. El Pew

    Wise Guy

    Joined: Sep 1, 2009

    Posts: 1,053

    One thing to note, if we switch back to a gold-backed currency as some people on this board seem to think should happen (but which is unlikely given how stupid an idea that would be) then one of the first things the government will do is requisition all of the available gold and make private ownership of it illegal.
     
  18. mmj_uk

    Capodecina

    Joined: Dec 26, 2003

    Posts: 23,331

    You'd have to be pretty retarded or an absolute sheep to hand over your gold to a clearly out of control government that would make ownership of it illegal.

    I honestly think that if governments were to make oxygen illegal some people would die of asphyxiation.
     
    Last edited: Jun 21, 2011
  19. Energize

    Caporegime

    Joined: Mar 12, 2004

    Posts: 27,855

    The law doesn't matter in the end because it's practically unenforceable and people would continue to trade using gold regardless of the law as no one would accept the government stealing their assets. Gold has value as long as people are willing to accept it as payment. I bought 2 ounces when the price was lower and have physical possession of it. I would not have it in trust.
     
    Last edited: Jun 21, 2011
  20. eXor

    Mobster

    Joined: Nov 13, 2002

    Posts: 3,585

    How do you ensure that what's up for sale is 100% as described? Are you knowledgeable in this field?