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Investing in Gold

  • 08-04-2011 10:47am
    #1
    trainee
    Registered Users, Registered Users 2 Posts: 2 ✭


    I came across this site [snip] and it got me thinking about investing in gold as the price of gold is high at the moment.

    has anyone dealt with <snip> before, and how much should a person be looking to invest in gold.

    Any feedback & advice would be great.


Comments

  • #2
    3DataModem
    Registered Users, Registered Users 2 Posts: 4,126 ✭✭✭3DataModem


    When I had a stock portfolio, I used to hold about 20% in gold. Usually Krugerrands. Buy em at 2% over bullion price, sell 'em for 3 or 4 percent below.


  • #3
    Paddy 77
    Closed Accounts Posts: 13 ✭Paddy 77


    There are many means and vehicles for buying gold. Beware of buying into gold funds or contract for differences (CFD's). I have half my assets in gold and have purchased through an online broker that actually has physical reserves of gold (held in a vault in Geneva) to back all the funds it receives.


  • #4
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Do any of the swiss banks or english banks offer it for sale? I know they store it, would be an easy enough solution if they did.


  • #5
    Bigcheeze
    Closed Accounts Posts: 2,858 ✭✭✭Bigcheeze


    Paddy 77 wrote: »
    There are many means and vehicles for buying gold. Beware of buying into gold funds or contract for differences (CFD's). I have half my assets in gold and have purchased through an online broker that actually has physical reserves of gold (held in a vault in Geneva) to back all the funds it receives.

    What's the issue with buying into a gold fund ? I'd say the most common way for Irish people to get access to gold exposure is via the Rabodirect gold fund.

    I'm a bit wary of gold investment for two reasons:

    1) Every Tom, Dick and Harry seems to think it's a low-risk, no-brainer investment. Investing in gold is often mentioned as something astute in the media. The op is considering investing in gold "because the price is high at the moment" which is the worst reason to invest in anything.

    2) All the "we buy gold" businesses popping up points to a bubble.


  • #6
    Paddy 77
    Closed Accounts Posts: 13 ✭Paddy 77


    What's the issue with buying into a gold fund ? I'd say the most common way for Irish people to get access to gold exposure is via the Rabodirect gold fund.

    The potential issue with buying in to certain gold funds is that there can be uncertainty regarding their asset backing. Many of these funds assets are based on CFD’s. As with all derivative instruments, if the counter party defaults (i.e can not pay up in the event of a surge in golds price), then the fund will be at a loss.

    Funds that are backed by tangible assets are much safer. Check out bullion vault or “gold money”. These companies have audited physical gold for every cent they receive. The US fed are apparently trying to suppress the value of gold and there are question marks (possibly conspiracy theories) regarding reported reserves versus actual gold reserves. This stuff is a bit beyond my pay grade but there is plenty information out there if you want to check it out. If in doubt stay away from derivative based funds.
    1) Every Tom, Dick and Harry seems to think it's a low-risk, no-brainer investment. Investing in gold is often mentioned as something astute in the media. The op is considering investing in gold "because the price is high at the moment" which is the worst reason to invest in anything.

    I do take your point in that investors should be wary of a bubble. There are strong arguments (such as the fact that the US Fed and other major central banks or printing money in exponential proportions) for and against investing in gold at this point but such an investment certainly should not be regarded as "low risk" I am not advocating the purchase of gold but merely addressing the orignal posters q re methods of investing.
    2) All the "we buy gold" businesses popping up points to a bubble.

    I'm not sure of the relevance of this to your argument. I think the "we buy gold" phenomenon is a result of the growth in gold's value coupled with the economic hardship / desperation of the vendors.


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  • #7
    Paddy 77
    Closed Accounts Posts: 13 ✭Paddy 77


    Deleted User wrote: »
    Do any of the swiss banks or english banks offer it for sale? I know they store it, would be an easy enough solution if they did.

    Bullion Vault and Gold Money buy gold to match your investment and the gold is stored in a vault in London or Geneva (your choice). The fees vary but from memory are about 2% purch fee. You also pay a storage and insurance monthly fee which is actually minuscule. If your holding is sufficiently large, you can have a bar gold (with its unique registeration no) registerd in your name at an extra cost. You can in theory go and collect this bar from the vault.

    Hope this helps!


  • #8
    stephenpalmer
    Banned (with Prison Access) Posts: 167 ✭✭stephenpalmer


    gold!! Who doesn't want to invest in gold! :)

    Gold..


  • #9
    Paddy 77
    Closed Accounts Posts: 13 ✭Paddy 77


    gold!! Who doesn't want to invest in gold!

    Gold..

    A: George Sorras apparently! (a man who knows more than a thing or 2 about investing in gold!). Check this out:

    http://www.independent.ie/business/stocks-markets/gold-prices-slide-after-megarich-soros-offloads-his-large-holding-2638116.html


  • #10
    stephenpalmer
    Banned (with Prison Access) Posts: 167 ✭✭stephenpalmer


    Paddy 77 wrote: »
    A: George Sorras apparently! (a man who knows more than a thing or 2 about investing in gold!). Check this out:

    http://www.independent.ie/business/stocks-markets/gold-prices-slide-after-megarich-soros-offloads-his-large-holding-2638116.html

    Wow nice article would of been nice to get in there before they crashed!!!


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