To buy or not to buy that is the question

[Nugget]

Morning all, great to be back.

Building the stack again but weighted more to gold this time.

Sold a lot of my silver off a while back, kept 50x1oz coins and with BREXIT and 20% VAT just can't bring myself to start buying silver again.

I have few Oz of gold (sovereign and Brit and loads of 9ct) gold that I've acquired over the years.

Ready to make my first purchase with circa £1.5k fiat.

But is now a good time to buy.  Or sit tight, see what happen in markets and then if prices drop pull the trigger.

At this moment only looking at sovereigns and 1oz as I don't want to get drawn into the collector side of things.

What are people's thoughts?

[Mike1976]

Depends how on how much patience and optimism you have. I believe once lockdown ends and life returns to normal the price of PM will drop. At the moment those who have been able to continue working through the pandemic have a lot of spare cash to play with while the pubs, clubs, gyms and shops are closed and while sitting at home bored have invested and played around with stocks, shares and precious metals. When normal service resumes there’s no way the majority of these new people (which I am one of) are going to choose this life over a social life and a social life costs money. Once this happens and they stop spending money on gold and silver then surely the prices will drop. 

[silenceissilver]

53 minutes ago, Mike1976 said:

Depends how on how much patience and optimism you have. I believe once lockdown ends and life returns to normal

That's not going to happen though. There is no way back to normal within this system.

Boris Johnson is committed to the Great reset ("You'll own nothing and you'll be happy")

Remember it was 3 weeks he asked us for, last March. How can anyone still believe it's going to end soon with these people in charge.

So what does this mean for your question?

Buy!

 

[Roy]

That looks like a 'Jim'll Fix It' badge.

Perhaps Jim 'fixed it' for them?

[Nugget]

Thanks for responses folks.

I am aware of the benefits of pound cost averaging with drip feeding the purchase of PMs over time, so may just opt for some smaller sovereign coins for now and then again next month, so on and so forth.

[Pete]

I am uneasy about buying gold right now because I think it is over priced but if it drops to close to £1,000 per ounce I will buy more.
I am more interested in platinum, if there is a work around the VAT, and once dealer margins return to a more reasonable percentage.
As for silver once / if spot jumps up again to £22 or preferably more I will consider selling some.

Most governments are deeply in debt and this serious debt is out of control without anyone asking how it will ever be repaid.
One way to lower your debt over time, say a 50 year plan, is to devalue your currency either through inflation or quantitive easing - printing money without tying to assets.
Think of the East German Reismark or the Zimbabwean dollar where a barrowload might buy you a loaf of bread.
The denominations of these notes had 9 zeros and you could swap a few million dollars for a sheet of toilet paper.

So, if a government has borrowed from the "ether" a trillion dollars, maybe at 0.1% interest, over a 50 year repayment term, the "ether" wants back it's trillion dollars plus a pittance of interest. If a trillion dollars buys you 500 billion burgers at McDonalds, it might only buy 200 billion burgers at the end of the loan. The value of the currency has fallen 60%. The cash that the man in the street has saved in his ISA or under the mattress will also be worth 60% less. If however you buy gold or any other PM the chances are that it will retain its original value and will appear to have risen by 60% but swapping for tangible assets may only buy what it would have bought 50 years earlier. Unless government debt is somehow tied to an asset like gold ( think China, Russia, India maybe ) the clever accountants will see it in the national interest to repay the lender 60% less in real value but still numerically correct. This is only a hypothesis but I cannot see any other solution out of our mess whilst supporting a case to hold something other than fiat.

[GoldStatue]

36 minutes ago, Pete said:

I am uneasy about buying gold right now because I think it is over priced but if it drops to close to £1,000 per ounce I will buy more.

That seems a very low price for gold considering the current circumstances, a fall of 25% could take some time, would you be prepared to wait that long?

[AurumArgenti]

3 hours ago, Roy said:

That looks like a 'Jim'll Fix It' badge.

Perhaps Jim 'fixed it' for them?

Jim fixed it for Joe Biden so who knows what's in store? 🤣

[stackerp5]

I'd rather personally buy than regret. You could wait off in purchasing to save couple of £££ but you'd kick yourself if the opposite happened and end up paying a higher price. If you choose to wait and price goes down then you save couple £££, however if the price rises you might just have missed it. I'm not FOMO-ing, I'm just talking from personal experience to be fair...

I had the opportunity of buying 3 ounces of gold at £800 each and waited hopefully and never went down lol

G&S price going up means currency is devaluing in relation to the metal, so I would buy regardless of the price

[Bars]

7 hours ago, Nugget said:

Morning all, great to be back.

Building the stack again but weighted more to gold this time.

Sold a lot of my silver off a while back, kept 50x1oz coins and with BREXIT and 20% VAT just can't bring myself to start buying silver again.

I have few Oz of gold (sovereign and Brit and loads of 9ct) gold that I've acquired over the years.

Ready to make my first purchase with circa £1.5k fiat.

But is now a good time to buy.  Or sit tight, see what happen in markets and then if prices drop pull the trigger.

At this moment only looking at sovereigns and 1oz as I don't want to get drawn into the collector side of things.

What are people's thoughts?

Buy now mate. Is at a good entry price. And this lockdown/economic uncertainty will only get worse. You can save and buy whole Ozs at a time or buy a bit monthly to have some skin in the game. The latter works just as good/if not better than the former. 

[Nugget]

Think I may just bite the bullet.

Looking at the spreadsheet of what I purchased in 2016 and the costs per unit (including delivery etc) I am around 58% across my PM holdings as they stand.

Better than the bank!

[stackerp5]

1 minute ago, Nugget said:

Think I may just bite the bullet.

Why not! Few year's time you'll probably have another 58% over that*

*Not financial advice, nor an educated, thought-out guess

[Stuntman]

With today's price drop in gold, I'm about to buy some more in ETF form while I wait for the next physical coin I want to buy to actually be released.

Personally I think anything below £1350 per ounce is buying territory at the moment.

[MrFreezerrr]

Try spreading your buy-moments. Nobody really knows what goldprice will do. Buy some fractionals or sovs, and if price rises, you didn’t fully miss the boat. If the price falls, you didn’t go all-in and can buy some more at a better price. There is nothing wrong with paying premium for fractional gold. In return you will have more coins to look at, will have coins that are much easier to sell (@average joe) if goldprice ever hits very high levels...and in the end when selling them you will get the premium back.

Offcourse lots of people will say ‘oh no buy the 1oz it’s cheaper’, and that’s a fact, but I guess it all depends on how rich you are. Some people have to save up to 1 year or more to be able to buy 1oz gold...And then this is kinda hard, boring and demotivating. If one gets a 1/10oz a month, you also stack gold and keep motivated and can enjoy different designs and can spread your spendings.

 

[Bars]

Mr Freezr dropping 💎s

[Nugget]

Well I purchased 1 oz and can just sit here now, deal is done.

When it gets here, I will chuck it in the safe with the other stuff and there it will stay.

I keep a spreadsheet of all purchases so I can track all details and see where I am (I keep all my receipts also - still have my 2016 ones from STG and C.Invst for example - bit of OCD here).

I purchase shares / collectives and such also (primarily Pension and ISA), so fully appreciate the benefits of pound cost averaging over time.  Next purchase will be Sovereigns (I like to try and buy 5 at a time).  My 1 oz is February purchase and will see where I stand in March for the next.

Onwards and upwards as they say.  If only the price was to fall to the £800 per oz region again (one can dream I suppose).