Advice. Buy And Sell Gold?

[Waldo 96]

I’m interested in buying gold. What options are available? I probably don’t want to own actual gold though, just a record that I bough x amount of gold with a company. What’s that called?

 

Also, what kind of % commission fee should I expect to pay when buying / selling?

 

TY

[mrm65 17]

Never bought gold before, but this looks interesting

 

https://www.bullionbypost.co.uk/

Edited March 8, 2021 by mrm65
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[Annie Bynnol 612]

Don't

Gold prices are going down at the moment- 12% down this year as a response to what is happening in the USA.

 

Comparing the world price of gold with companies that provide the kind of service  you want is relatively easy.

Gold transactions are VAT free, but you will pay a broker/dealer to buy and sell. You will also pay for delivery, insurance and/or storage. These fees and commissions will be disproportionately large for small investors. 

 

Some people try to make more money by buying and selling as the price fluctuates- they always lose.

Most who have gold do so as part of a range of investments. 

 

 

[mafya 243]

Forget paper gold, stacking physical gold is my preference. 
I buy gold bars from Asian jewellery shops when rices are low and sell it when they are hig, they usually have some I. That they have taken in to melt down into jewellery.
I ended up with some 1 oz Singaporean gold coins a year or so ago and the jeweller had taken them in against some jewellery he had sold and was going to melt them down. I paid spot price plus £10 for each coin.

I did well on silver a couple of years ago too.

[Annie Bynnol 612]

Silver prices are steady compared to gold but trading price fluctuation, costs and VAT make silver less attractive than gold.

The big money is made when you can take advantage of price fluctuations in an otherwise steady price.

You have to sell/buy quickly and in large quantities of saleable registered bullion- which individuals think they can do- in reality it is the broker/dealer who takes advantage.

Most people treat it as a fascinating hobby/gamble which will at worse retain most of its value.

Gold prices were very high 6 months ago, but is currently loosing value(watch the USA). 

 

There are other ways of investing in metals which are easier and more accessible to small investors.

Investopedia is one of many sources of information.

 

 

[Waldo 96]

Thanks everyone,

 

I took a look at the bullion by post website. Thought the difference between their sell and buy price for 1oz bars was quite high, 11%. Is that typical, or specific to that one site?

 

I’m wondering if good maybe better suited to long term investment, 10 years or so.

 

I need to do a lot more research on the drivers of gold price...

[Annie Bynnol 612]

1 hour ago, Waldo said:

Thanks everyone,

 

I took a look at the bullion by post website. Thought the difference between their sell and buy price for 1oz bars was quite high, 11%. Is that typical, or specific to that one site?

 

I’m wondering if good maybe better suited to long term investment, 10 years or so.

 

I need to do a lot more research on the drivers of gold price...

If you bought an ounce 20 years ago you would and sell today you would make £1000 an ounce.

If you bought an ounce 10 years ago you would and sell today you would make Nothing.

Use the 30 year (or any other period)data from BullionbyPost to see if you can, with hindsight, explain the increases, decreases, long periods of stagnation over that time.

No economic model ever predicted a decade where low inflation, low unemployment, a Labour Government and low gold prices could co-exist?

 

People with millions in liquid assets have a reason to invest in gold -they will continue to be millionaires.

For us, work/business is far more profitable.