€30k - invest in gold?

fyfe79

Hi folks,

Total newbie here, apologies if you see these types of threads all the time but just looking for some opinions please.

I've had about €30k invested in Prize Bonds for the last 18 months or so (won €250) but want to take it all out and play the markets instead for better return. I'm mainly looking at gold, silver, oil etc.

Essentially, I'm looking for names of some good advisors/firms who can provide some useful information/tips? I realise that there will be monthly fees for this service.

I currently have some of stock options (my employer) and I exercise them through Compushare. I'm guessing I can use them as a broker for natural resource stocks too?

Francie Barrett

fyfe79 wrote: »

I currently have some of stock options (my employer) and I exercise them through Compushare. I'm guessing I can use them as a broker for natural resource stocks too?

You won't, you will have to set up an account with a retailer broker if you're looking to buy shares/ETF's.

fyfe79

Francie Barrett wrote: »

You won't, you will have to set up an account with a retailer broker if you're looking to buy shares/ETF's.

You're right. I'm going to go with "td direct investing", as they charge a flat €20 per transaction.

daveirl

This post has been deleted.

Bob24

First, don't put a majority of your savings in gold.

Secondly, there are different ways of buying gold and you need to think of why you are buying it.

If your main purpose is to "gamble" on the price of gold and with the intend of selling in a short to mediujm timframe and make of profits, ETFs are the easiest option.

If you are looking for a "safe heaven" (quotation marks as it is not necessarily one) to protect your wealth against crazy economic of political events, you'd better off getting actual physical gold owned under your name rather than a financial product indexed on the price of gold.

TiGeR KiNgS

If your looking for gold as a long term asset, 3K (10%) of your portfolio in physical gold is the sweet-spot.

i.e. 10% fall in the price of gold is only 1% of your portfolio, so well protected, while allowing for a lot of the upside. (if there is any....).


It should also be said that your prize bonds have returned better than gold in the last 18 months. (however, you are still quite correct to move away from these 'assets').

marymary1984

Investment decision also depends on age- a diversified portfolio is always advised - a bit in everything. Personally not a fan of gold as investment - would put some in bonds, savings and equity market - would prefer other precious metals or commodities over gold but many websites give good advice. The Sunday Business Show on Today Fm is always worth a listen - often their experts give decent advice on people with a bit a cash to invest.
Commissions can eat a chunk of your investment so get a cheap way of investing as brokers are expensive. Rabbo direct also do some very good investment options and its liquid meaning you can sell when you like. Think they have a commodity fund you can invest in easily and rates are good too.

fyfe79

Bob24 wrote: »

First, don't put a majority of your savings in gold.

Secondly, there are different ways of buying gold and you need to think of why you are buying it.

If your main purpose is to "gamble" on the price of gold and with the intend of selling in a short to mediujm timframe and make of profits, ETFs are the easiest option.

Yes I think I'll be going down the ETF option. I might also look at some of the junior oil mining companies. The plan is 'cash out' after about 5 years.

Thanks for the advice folks, investing in a few different companies and spreading my risk would be the way to go.

Francie Barrett

fyfe79 wrote: »

Yes I think I'll be going down the ETF option. I might also look at some of the junior oil mining companies. The plan is 'cash out' after about 5 years.

Thanks for the advice folks, investing in a few different companies and spreading my risk would be the way to go.

Be careful. ETF's are generally regarded as a good thing, but that doesn't mean they all are. There are plenty of ETF's that are invested in trash that on average will lose money (3x leveraged ETF's, ETF's for cannabis companies, "ethical" investing, green energy funds, commodities, etc).

Junior mining companies are about the most riskiest companies that you can have in a portfolio. Sure, there will be the odd gem that will have went up 10 times, but equally, 90% of junior miners end up going to 0. Personally, I would steer clear entirely, but in your case, I think you should wait a few years until you have more experience investing before you decide to take a look at the sector.

If I was you, I would consider doing a little reading before doing anything. I would recommend The Elements Of Investing by Charles Ellis/Burton Malkiel. If you want to google the pdf, it can be found easily enough. It's a short book, but it talks through a very simple investment strategy around indexes that is perfect for any investor starting out. There's some US centric stuff you can skip.

fyfe79

Francie Barrett wrote: »

Junior mining companies are about the most riskiest companies that you can have in a portfolio. Sure, there will be the odd gem that will have went up 10 times, but equally, 90% of junior miners end up going to 0. Personally, I would steer clear entirely, but in your case, I think you should wait a few years until you have more experience investing before you decide to take a look at the sector.

If I was you, I would consider doing a little reading before doing anything. I would recommend The Elements Of Investing by Charles Ellis/Burton Malkiel. If you want to google the pdf, it can be found easily enough. It's a short book, but it talks through a very simple investment strategy around indexes that is perfect for any investor starting out. There's some US centric stuff you can skip.

Absolutely. I won't be investing until I've read up and understood at least the fundamentals. I'm willing to take risks but not be reckless. Regarding junior miners, I'll be looking at the management teams and where these guys have learned/plied their trade and whether they have any deals in place with the larger companies etc. They are risky indeed, but I'm up for the challenge after so long playing it safe. Cheers for the book tip, will check that one out for sure.

topper_harley2

Be sure to read up on tax treatment of UCIT ETFs, loads of threads on this topic already here. Basically it's crap.

Bob24

Strong upwards pressure on gold today and probably in the coming days due to the Brexit vote. Beware not to buy at the peak (if you haven't bought yet and aren't ready to do is very quickly, I would suggest to take your time and see what happens in the coming weeks).

newacc2015

Bob24 wrote: »

Strong upwards pressure on gold today and probably in the coming days due to the Brexit vote. Beware not to buy at the peak (if you haven't bought yet and aren't ready to do is very quickly, I would suggest to take your time and see what happens in the coming weeks).

If you read the first chapter of the intelligent investor which Warren Buffet swears by ( he says every investor should read it at least once in their lifetime and again in a time of crisis). Benjamin Graham says something along the lines of when everyone is buying sell, when everyone is selling buy. The fact everyone is buying gold is the exact reason not to buy it. There is plenty of value stocks out there at the moment, that are a safe haven and will pay a dividend unlike gold. If you buy fundamentally strong companies, you dont need to worry too much about crisis. Eg Apple weathered today with a minor drop in price

Like I have wanted to buy Irish REITs for the last few months. They will benefit from low interest rates on developing and higher rents from existing properties etc. IMO they are undervalued. I logged onto Degiro at lunch and seen that Hibernia had dropped 6% today. It was totally illogical as something like 95% of its assets are in Dublin and it will more than likely benefit from Brexit ie banks moving to Ireland. I brought Hibernia at 1.20 this afternoon and it closed at like 1.26.

Ask yourself what is the fundamental price of the asset or stock and base your decision on that. Not what a fear driven market thinks it is

Bob24

Yeah that's what I'm saying ... if the OP is not in already, they should take their time and not get caught up in a post Brexit gold rush.

fyfe79

Bob24 wrote: »

Yeah that's what I'm saying ... if the OP is not in already, they should take their time and not get caught up in a post Brexit gold rush.

No, I've not purchased yet. I've applied for an a/c with TD Direct (I need to bring a bill/bank statement and ID to the Guards and get their application form stamped), meanwhile I've also set up an a/c with DeGiro and while they are much cheaper to buy/sell shares through, I'm unsure of how safe it would be to have €30k going through them. I see another poster has posted the same concern in another thread, actually.

Anyway, I'm holding back for now. I'm kind of expecting a fall-back with gold and junior miners. Should they drop by 20% I'm considering jumping in as this could be the start of a bull market.

iainBB

fyfe79 wrote: »

No, I've not purchased yet. I've applied for an a/c with TD Direct (I need to bring a bill/bank statement and ID to the Guards and get their application form stamped), meanwhile I've also set up an a/c with DeGiro and while they are much cheaper to buy/sell shares through, I'm unsure of how safe it would be to have €30k going through them. I see another poster has posted the same concern in another thread, actually.

Anyway, I'm holding back for now. I'm kind of expecting a fall-back with gold and junior miners. Should they drop by 20% I'm considering jumping in as this could be the start of a bull market.

What do you mean start of a bull market. We have been in one since Feb. This could be the start of a bear market.

Stay out if you don't know what you are doing. I got up 35% yesterday. Very happy man.

fyfe79

iainBB wrote: »

What do you mean start of a bull market. We have been in one since Feb. This could be the start of a bear market.

Stay out if you don't know what you are doing. I got up 35% yesterday. Very happy man.

Sure, I missed the boat in Jan/Feb but now is not the right time to buy as I believe there will be a pullback and when that happens, that will the right time to buy for me. Bull markets rarely shoot straight up.

iainBB

fyfe79 wrote: »

Sure, I missed the boat in Jan/Feb but now is not the right time to buy as I believe there will be a pullback and when that happens, that will the right time to buy for me. Bull markets rarely shoot straight up.

Yes not the time to buy now but this could be the start of a bear market and less of a pull back.