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Gold or Silver

  • 02-12-2019 8:39pm
    Registered Users Posts: 178 ✭✭

    Hi, been looking at gold and silver coins recently or gold bars. As I'm relatively new to this type of thing I was wondering has anyone bought any before and what's the deal with them?

    According to Irish gold bullion there's no longer VAT on gold bars and coins in ireland but there is on silver?

    I'm guessing this is a whole buy low sell high type type thing?

    I'm looking for a little something to invest in.


  • Registered Users Posts: 14 maca007755

    gold silver ratio is still very high, id go silver now until it hits 55. thats just my personal opinion though.
    youre definitely going to make back the 13.5% VAT so i wouldnt factor that too much in the overall decision

  • Registered Users Posts: 373 ✭✭JMMCapital

    Gold is considered a safer play being bought mainly by investors, central banks and governments which are buying it as insurance.
    With silver on the other hand, you are simply betting that the ratio is gonna get back in line with its historical standards if you look over the past couple of years it has been at around 40/50:1 ish give or take.

    Investment demand is currently low according to silver mint the average sale of a one ounce coin has been half that in the previous 8 years, so it would be a good time to consider buying from a contrarian point of view.

    Another factor to take into account is silver production prices are falling, silver too has more of an industrial use than gold. I think as long as the global economy continues to grow we will see more industrial demand for silver. So silver prices should increase based on basic supply and demand.

    We’ve seen gold shooting higher this year with the central banks buying more gold than any time in history, hopefully as central banks print more money thus raising the price of gold as a result silver will be dragged along too. That being said silver could fall as there is more risk

    I personally think that silver is going to try and keep up with the price of gold you just have to worry about the ratio as it’s currently historic high levels, hopefully it can return back to the 40/50 level.

    I would try stay away from buying it physically as the VAT can hurt also take into account that you will be paying a premium above spot price. Choosing an ETFs to invest in would make more sense as it will be aligned with the price of silver/Gold and you will have only a small expense ratio a fraction of that being payed to buy it physically . Also investing in mining companies would be another option to consider, stock prices will increase along with increased demand.

  • Registered Users Posts: 304 ✭✭peterofthebr

    about 2yrs ago i put about15k into bullionvault and bought gold&silver ..they charge a small fee for holding the metals evey month but ive had no problem with bullionvault-gold/silver value has jumped double digit. so holding fee is nothing.

    i can pay a charge and get the gold and silver physically but havent decided to do that-

    gold lilely to go up this year..its already hit $1500oz...

    bought it as part of a hedge for brexit and deuchie bank ;-) but that hedge also includes ridiculous debt and the trump factor.
    i hear bubble in gold in the etf area.
    bullionvault publish a daily audit of who owns the metals they manage. but in the event of iran_usa tensions, trade war fallout, brexit fallout on eu, deutsche bank collapse (eu's lehman brothers) all happening if you dont physically hold the metal it could be like having ur money in northern rock- in the worst cast scenario.
    gold should hold its value unless central banks attack it for the next couple of yrs. allot of countries are stockpiling gold bullion as with all the us debt they cannot really sustain the reserve currency globally.. imho ..

  • Registered Users Posts: 11,222 ✭✭✭✭Lex Luthor

    Unless you physically hold the gold or silver it’s not yours, that’s why imo I don’t like ETF’s

  • Registered Users Posts: 694 ✭✭✭douglashyde

    Lex Luthor wrote: »
    Unless you physically hold the gold or silver it’s not yours, that’s why imo I don’t like ETF’s

    Not quite true. It is possible to buy the physical gold and have a vault hold it, I use < they allow you to physically withdraw it if you like. However, if you think you need to buy it and bury it in your back garden yourself then you'd be better investing in a gun and baked beans than you would gold.

    Personally I prefer gold for all the reasons mentioned above. A looming recession, and massive US & corporate debt and a likely rise in inflation rates means gold is (in theory) a good investment.

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  • Registered Users Posts: 14 maca007755

    Degussa in Germany have closed some stores due to lack of gold for retail, there has been a 'run' of sorts due to a law change with regard to anonymity there. Plenty of rumors floating about of scarcity, I'm not saying I believe them but I'd be holding just to be on the safe side.

  • Registered Users Posts: 373 ✭✭JMMCapital

    Great analysis on Gold by Jan Nieuwenhuijs.

    "It shows that in the West, there are runs on gold when the price is rising, while in the East lines are forming when the price is falling."

  • Registered Users Posts: 63,609 ✭✭✭✭unkel

    E46Dream wrote: »
    I'm looking for a little something to invest in.

    With your username, it seems apt to consider buying a (near) mint E46 M3 and sticking it in storage somewhere? :)

    Over time quite likely a far higher yield than with bullion...