Gold Investing

Discussion in 'Just Talk' started by glob@l, Jun 16, 2021.

  1. glob@l

    glob@l Screwfix Select

    Thanks for that!
     
  2. Bob Rathbone

    Bob Rathbone Screwfix Select

    A good way to launder money, that's why it seems difficult to aces gold trading. Don't rely on brokers, make your own decisions on when to buy and sell and consider the cost of doing this in commissions etc.
     
  3. Coolhuman

    Coolhuman New Member

    I bought cheap gold from Africa once. In Congo it's sold by militia and Army men. Bought at a 25% discount. Gold in Africa is very cheap. There's so much gold in Africa yet they are poor. I am going there again!
     
  4. sally green

    sally green Active Member

    Buy 24 carrot gold, secondhand jewellery - its a bit like cash as one of my friends has bracelets wears them and when gold price was high she got full market gold price minus just a few quid expenses from one of those shops that makes/sell asian style jewellery. Downside is I guess is keeping it safe in the house or getting mugged when you are out
     
  5. sally green

    sally green Active Member

    We went to Dubai years ago got 22ct gold vat free when i think they charged vat in the uk, I may be wrong. We were not asked about it on our return. Sold it at a good profit a few weeks later
     
  6. robertpstubbs

    robertpstubbs Screwfix Select

    Rather than trade in gold directly, I buy/sell shares shares in mining companies.

    Eg Centamin (CEY). It’s included in the FTSE-250, but because it’s based in Jersey there is no Stamp Duty to pay when you buy. I’ve sold at up to 119p/share and bought at down to 82p/share within the last year. Sometimes it takes a minute or so to get trades executed but normally there is a tight (about 0.1%) bid/ask spread.
     
  7. sally green

    sally green Active Member

    the shares you post about are not really gold trading are they? If the mine falls in on itself or other damage etc or they stop finding gold, no matter how high the gold price is as the CEY share price will be zero or worth that to holders.

    What I posted about was having the goods in your hand and that way the gold will corr elate with prices
     
  8. robertpstubbs

    robertpstubbs Screwfix Select

    You are right that mining share prices don’t exactly correlate with gold prices.

    And for instance there was a scare with Hochschild (HOC) on 22nd Nov. I was slightly exposed but very fortunately added at 70p/share in the morning and sold some off at 117p/share in the afternoon to rebalance the situation.

    I also monitor oil prices and buy/sell shares in oil companies rather than want to deliver oil into or collect it from a depot in Oklahoma.
     
  9. Muzungu

    Muzungu Screwfix Select

    Investment gold in the Uk is vat free and since gold jewelry, unless from a well known maker, is usually sold at its bullion price its VAT free status in Dubai (actually 5% now) would be unlikely to make any difference. The jewelry itself would be cheaper in Dubai because of the smaller rate of vat but not the intrinsic value of the Gold. That would be based on what is known as the "spot price" which is an international dollar value, i.e. the same everywhere.

    If you bought gold jewelry now in Dubai for resale in the Uk you would almost certainly make a significant loss as there is commonly a markup of 30% or so for made up pieces for which one would only get the "sell" bullion price in the Uk.

    I made an investment in a kilo 24c gold bar (vat free) just before the brexit vote. If I sold now I would make about 12k at today's sell price. This was on an initial cost of 30k so a significant uplift. This was more from luck than judgement. As the difference between the buy and sell price is about 7% one would need that uplift from the start before looking at a profit.
     
  10. sally green

    sally green Active Member


    Good on you, IE never eggs in one basket. Me and my ex traded shares years ago and avoided penny shares but not bothered for a good 10 years.
    You could have lets say 10k invested today then wake up with 20/30k the next day or good as zero. Miningin and oil shares we tried to avoid but got our fingers burnt in **** penny shares in oil where the ceo's were living the lfe on the back of shareholders a bit like some politicians living off the backs of taxpayers
     
  11. sally green

    sally green Active Member

    Btw - one of my siblings found out the hard way that their "research" "vast research" into a mining company mean naff all and they lost most of their money and bailed out before the co went bellies up
     
  12. hi2u_uk

    hi2u_uk Member

    I dont know about gold but yesterday i bought shares in companies where the share price is at a historic low e.g cinema chains and airlines. My thinking is that the covid drama will eventually end and the share price of cinema chains and orange colored airlines will rise as i dont think people will stop flying forever or stop going to cinemas forever
     
  13. robertpstubbs

    robertpstubbs Screwfix Select

    The “reopening” stocks aren’t exactly at historic lows. Actually they are fairly volatile moving down on each bit of bad news and moving up on each bit of good news, so offer good short term trading opportunities. Especially TUI (based in Germany) and IAG (based in Spain) so there is no stamp duty on trades.

    RR. is also affected by daily Covid news, but they have the advantage of also having military and energy generation interests.
     
  14. robertpstubbs

    robertpstubbs Screwfix Select

    SSPG (airport food etc) is another Covid play.

    With regard to the cinemas eg Cineworld (CINE) I’m not so sure they will recover all their pre-Covid business. Maybe people will have got used to eating ROO delivered food in front of the big screens they bought from CURY.
     
  15. Coolhuman

    Coolhuman New Member

    That's great. We should form a team
     
  16. LsaissLai

    LsaissLai New Member

    Investing in gold is one of the safest ways to invest since gold is the world currency, and there is no risk that gold will fall in value.
     
  17. Baxi Boy

    Baxi Boy Active Member

    Gold goes up and down every day,today it’s £47 a gram, in 2020 it reached £50.It is probably a much safer investment now than any bank at 3% interest and true inflation of close to 20%.
    £10,000 of gold today is very likely to be worth the same or more in 12 months,but the same in a savings account will be down to £8500 in real terms due to inflation..
     
  18. dubsie

    dubsie Active Member

    Gold isn't a good investment and I say that In terms increasing your wealth.....gold is an investment to protect wealth against inflation.

    Investments are risky and gold isn't risky but holds its value pretty reliably. So if you have savings which are currently devaluing at 11% it would be wise to buy gold coins instead. The problem is there are priced at around 600 pounds each

    Traders who deal with gold look for volume and tiny fluctuations to make their money. For us that simply isn't practical.
     
  19. dubsie

    dubsie Active Member

    You can't move gold across international borders without paying a lot of tax. Typical a single gold sovereign worth over 600 pounds would attract in excess of 200 pounds in import levies and
     
    Muzungu likes this.
  20. Muzungu

    Muzungu Screwfix Select

    As a long term holder in gold, a significant amount, it would be unwise to assume that by buying gold today you will preserve wealth in any meaningful way.

    Let me give you an example. 10 years ago gold was much the same value as it is today. 2 years ago gold was significantly higher than it is today, just previous to the Brexit vote it was significantly lower. Buying gold will mean you will immediately take around a 5% hit, that will be the spread between buying and selling. If gold remains the same price over the next year or so, very possible, you will be far better off putting your money in the bank.

    I was fortunate in that I bought just before the Brexit vote that caused the price of gold to increase significantly due mainly to the fall in the pound against the dollar. This was pure luck on my part.

    Unless you are just gambling on any meaningful rise in gold in the short term, and this will be a pure gamble, holding gold should only be regarded as a safe haven in case of a catastrophic collapse in the global financial systems. Otherwise it is like any other investment.

    The idea that anyone can make money by buying gold abroad and importing it is, not to put to fine a point on it, absurd. If it was that easy do you really think that those with any money would not be importing it regularly and immediately selling, and then repeating?
     

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