Physical gold - watches - Jewellery - pension

FocusST

Hi - is it possible to hold physical gold, watches and Jewellery as part of your pension portfolio?

I am in the process of setting up a pension and would like to put 20% of the value into physical assets like the above as part of a diversified investment strategy.

melchior1951

Zurich offers a fund that invests in physical gold: https://www.zurich.ie/funds/fund-products/alternatives/alternative-funds/gold/

FocusST

I'm not really interested in ETC's, ETF's or ETN's. I would like the gold/watches/jewelry in a safety deposit box or stored in a safe at home.

Henry Ford III

https://www.boards.ie/discussion/comment/117857727#Comment_117857727

No. Self invested pensions will not allow classic cars, wine, cigars etc. to be held by the beneficiary as part of their pension fund. All assets must be owned by the scheme itself.

The J Stands for Jay

https://www.boards.ie/discussion/comment/117857881#Comment_117857881

Just to be clearer, you are not allowed to invest in these assets, unless it's through a fund, ETF or similar.

Jim2007

https://www.boards.ie/discussion/comment/117857727#Comment_117857727

And that is precisely why this kind of thing is normally excluded. It would create a portfolio with a risk profile about three times higher that the norm and on top if it some of the components would be collectibles which are very hard to to value at the best of times. Not to mention having the skills, knowledge and abilities to verify such things. I don't work in Irish pensions, but I have done in mainland Europe and I can't recall a single place where such items were allowed. It's just too high a risk.

FocusST

Thanks, guys, I was told the same by my financial advisor.

shortie_chik

I don't know anything about pensions, but I am a goldsmith and would not recommend buying jewellery or watches as a pension / investment. Unless you know a _lot_ about watches and are buying something really really special (limited availability from a high end brand that won't be easily gotten by just anyone. Maybe look up McGonigle watches, I can imagine they'll increase in value, but in no way an expert here!)

As for jewellery, I'm not sure how people think they are going to make money on it, unless you're buying stocks in diamond mining or exceptional stones like the Hope diamond. If you've that much money to spend on diamonds, you don't need advice from anyone on boards! I understand that gold holds it's value, you'd want professional advice on getting in to that. I can buy precious metal from bullion dealers, but I don't carry stock. I use it and sell it on with each commission job. Would you just hold ingots of metal in a safe in your house? I'm sure the bullion dealers can get ingots. I usually buy bar and sheet metal, and they only deal with trade customers, so you'd need another way in.

Suppose you buy a 5ct platinum solitaire ring at €X. In 20 years, who are you going to sell it to? The shop you bought it from doesn't need to buy it back (unless they offer an upgrade programme).

A pawn shop offers scrap value on gold, nothing on stones. Could change in future, but that's currently how they pay.

Another investor or member of the public, why would they buy it from you when they can get the same thing from a jewellery shop, with warranties etc? You will probably have a diamond grading cert (good to have but just one gemologists opinion) and an appraisal for your insurance. But jewellery has a lot of labour and materials mark up.

An auction house will get you a fraction of what you paid initially, and there will be fees.

I would steer well clear of anyone trying to sell you jewellery as an investment, unless there's a very clear path as to how you're going to turn it back in cash in future.

Edited to add: you need to consider whether your home insurance would cover you to hold investment metals and jewellery. The insurers for jewellery workshops can dictate what kind of safe you must have, and how it is to be installed and protected (cameras, alarms etc.) or they decline to cover. Might be cheaper and handier to use a safe deposit box.

https://www.boards.ie/discussion/comment/117882327#Comment_117882327

Ain't that the truth??? Holding gold/ jewellery as an investment is a big no-no. Personally, I lucked out on an IWC watch once, long story but I returned over 1000% profit on investment....but that was most definitely the 'exception' rather than the 'rule'......more luck than anything else.