I am expecting to build a bit of a cash pot this year and with economies being as uncertain as usual I am trying to avoid investing in anything that isn't 100%. Gold is one of those things that nose dived and recovered and will at least maintain a certain level (worst case scenario having to sit on it until it recovers). But I am wondering if anyone else has traded in gold and did they find a reliable way to do it. I am looking at buying regularly and as such want something with a bit of flexibility for purchases.
I looked at this a few years ago when I was working in Egypt when gold was a third of its price now for a troy ounce. Unfortunately I didn't get round to doing anything about it and now obviously gold is not quite at its high of $1600/ ounce but around $1200/ounce I'd still be weary of buying into it in any great amount. I was advised by a few people to have about 10% of your total investment in physical gold. The larger the bar the higher your profit margin than if you only buy the coins for instance. If you do get coins the Canadian ones seemed to be of slightly better value. There are outfits that will store your gold, at a fee of course. I seem to remember some down in London. I'd personally look into one of the other precious metals that are likely to grow
I want the physical gold as i have little trust in a company that can go bump over night. But there are other options on the table, I can't see gold reducing but very likely to go back to its annual steady growth.
The large global recessions helped the price of gold, I think it'll stay fairly steady for the next year or two. Just my opinion obviously. What I did do though whilst in Egypt was buy gold jewelry. Paid by weight and very little for the workmanship. A lot of those companies that hold it for you have insurance policies built into their fees I believe
I dont mind collecting gold when i am out and about, you right about MENA though its often sold at close to weight value. Did grab the Mrs something while in Oman for a similar reason (good gift but also emergency money).
I am told by Those Who Know (which I certainly don't!) that there is a reason for the gold price to rise again at some point, and that is that Chinese gold mines are all producing less than they did, whilst China has overtaken India as the nation that buys the most physical gold. If as some expect China enters a period of relative recession, demand for gold in China is perhaps likely to increase just as production drops. However as with anything to do with China the Chinese Government has probably thought about this already and might introduce legislation of some sort.
China has been buying a lot of it up in the UK. I would say though its going to give a higher return than any bank account and I am not expecting any leaps but then again I am less likely to invest if it was. Something shooting up means its going to shoot down at some point.
I have never possessed any gold, apart from a tooth which was stolen by the dentist who replaced the crown. As I see it, the problem with Gold is the cost of buying and selling. Unless there is a rapid appreciation in value, the % trading cost will write off any short term gains
Gold's been shooting up for something over ten years, I thought it was undergoing a correction already? They tell us that investment in the stock market ultimately always pays off but here in the UK the index still hasn't recovered to 1999 levels, ok that was a boom level, but 15 years later we are still not back there. My problem with gold is that I only see its industrial value, you can't eat it and people will only trade it for stuff you can eat if they are not themselves starving. While it has some valuable industrial uses, humans mainly value it because it does not corrode and because there is not a lot of it, according to the Beeb round about a cube 20 metres on each side has been extracted in the entire history of humanity. It's shiny and pretty but it won't keep you warm in winter or feed your kids when civilization has collapsed.
You are a bundle of joy..lol world isn't going to collapse a reshape is likely but as history has shown when currencies collapse people trade in what is available. Gold is one of those assets with a high value. Your mobile phone has gold in it and any good quality headset. There are many uses for gold not just jewelery. But mentioning jewelery its much easier to move gold through customs as jewelry than it would large quantities of cash. In the same way gold in your home somewhere is off the tax radar yet its gaining in value annually. A tin of beans only goes from in date to out of date.. there is no profit to be made in it and if the world sunk into chaos its unlikely to be pre expiry date.
Are you considering investing in coins or bullion bars? Just curious as I have always fancied buying a few gold bars to stash away somewhere. I have always been a saver, not an investor, but fixed term deposits are paying miserable rates these days. The current online price for gold bullion is just under 25,000 GBP per kilo, with free delivery! Not certain how the anti money laundering laws apply to bullion trading, and of course there will be problems if you move to live in a different country, the guys x-raying your hand luggage at the airport would have a field day.
bars, as regards customs there was and is a lot of stuff coming out of Afghanistan where local traders swap jewels for dollars, as much as your budget can afford but recommend getting small stones as jewelers find it easier to sell them. E.g. someone losing a stone from a wedding ring.
I believe that when selling bars/ingots, dealers give a worse price for gold that was not originally purchased from them. Is it possible to get a decent price for Thai gold, (for example), in the UK? And if you are trying to sell a couple of kilos of foreign sourced gold, there must be big problems due to the anti money laundering laws.
Depends where you buy and sell bit like trading money can get good and bad deals depending where and when purchased.
