Taking profit from stock to buy gold

[TommyTwoShots]

I have been rather lucky/successful this last year. I bought at the nadir of the market and I’m now sitting on a decent 30% profit.

I guess this might be a silly question but should I sell it all and buy sovereigns? Gold is looking undervalued at the moment. I am getting a little nervous about stock pricing.

Edited May 3, 2021 by TommyTwoShots

[Alex944]

Depends on what suits your investment strategy the best. If you are nervous about the current state of the stock market, you could always decide to withdraw part of your money and put it towards some sovereigns. Gold is a much safer investment , though the stock market has a higher potential to gain / lose on your investment. If you bought stocks on a dip just to sell with profit on short term, taking a 30% margin and putting that towards sovereigns sounds like a pretty good move.

Edited May 3, 2021 by Alex944
typo

[HerefordBullyun]

Or just reinvenst in commodities like Gold silver miners and uranium commdities will fly when the mainstream markets crash

[LolRasta]

 

This is what I am doing as I am kinda in a similar position:

Stocks (20% profit) I hold most of my money: I am planning to rebalance this at some point (getting rid of bad stocks). I hold a mixture of dividend, growth and some really risky one less then 5% of my portfolio. I use trading 212 Isa if you have a friend you can get a free share (or someone on TSF can send you a link). 

Savings (0.4%-0.7% and 1%) Here I hold 4-6 months of cash, just if I need it for bill/ living if money stops coming in. I use Tandam 0.4% easy access, NSI premium bonds 0.7% with average luck also easy access (Has a chance to win £1million Pcm) Help to buy ISA 1% using as a regular saver not for a home (dont like the Life time isa only worth it for your first home not really worth it for retirement). 

Per to Per lending (4%) with Loanpad a bit of a unknown with the risk so I only put £50 a month as a experiment.  after almost a year not seen any issue with them. I do like they pay daily interest.  

Gold (stacking/collecting) Here I am new only doing for fun/(holding for a long time) as I like shiny things. I am focusing on the key Proofs with low M and high demand (like the QB) and some Bu sovereigns ever few months for the long long hold. Don't really have a end game here which is bad I guess not sure about flipping but that could be something to look into (Unless its seen as a bad thing ?) With some coins being sold for double RM value. And not sure about grading never done it and I have never sold a coin so really not even sure where to sell or how.  

Silver I don't touch as not a fan of it or like the tax on it 

That's what I do, not really sure if its the best but I am having fun doing it. I aim more for the fun of making money, I would say if stocks are keeping you up at night maybe look into ETFs or bonds or gold like you said less risk people say and wont keep you up at night.

 

Let me know what you think of my mix of stuff ? 

       

[HerefordBullyun]

1 minute ago, LolRasta said:

Silver I don't touch as not a fan of it or like the tax on it 

       

You might regret not going into silver as its more volatile and has the potential to make more gains. Hence why i prefer silver over gold. If gold rises 1 fold silver rises five fold! I wouldnt discount silver also if you are buying physical just buy CGT free silver like brits!

[LolRasta]

4 minutes ago, HerefordBullyun said:

buy CGT free silver like brits!

What's brits ? I guess I could look into it but never liked the look of silver. 

[Alex944]

Brits (Britannia's) are kinda the staple of bullion English (silver) coins. Because they are officially legal tender in the UK, they are exempt of any CGT. Same goes for Sovereigns.

I'm actually not sure if the CGT exemption status carries over to other  x pound coins, I'm not a UK resident so it plays no part for me in my investment strategy. I'm sure on of the UK members here can confirm that.

[HerefordBullyun]

23 minutes ago, LolRasta said:

What's brits ? I guess I could look into it but never liked the look of silver. 

Silver briitannia and Queens Beasts and valiants are CGT free 

https://www.bullionbypost.co.uk/silver-coins/britannia-silver-ounce/

[LolRasta]

What about VAT ? I thought silver has VAT and gold does not ?

[HerefordBullyun]

Just now, LolRasta said:

What about VAT ? I thought silver has VAT and gold does not ?

Once youve bought the brits the VAT has been paid - 2nd hand silver doesnt carry VAT unless you buy it from a dealer.

[GoldDiggerDave]

We are in very uncertain times, for me I'd always have savings in bonds/ISA's I know they are c**p rates but you need to have a "There's something hit the fan money".  

2, Gold has been a safe bet for 5000 years, but I can see a short/mid term lag behind crypto (even might look old fashioned for a while, to the kids anyway),  once the masses have piled into crypto and get nervous about only having digital assets I can see a stampede for gold as a physical hedge against any digital holdings people my have, then physical gold becoming detached from spot like silver is today, theres far less gold around than silver. (can you imagine looking back and saying you could buy gold with only 4-5% premiums?)  Gold today is silly cheap.  

3, Crypto, as much as I don't like the idea of it I've gained 51.74% in only a few months.  I'm scalping crypto to buy gold +more crypto,  even free fuel for the car. 

4, Not many talk about this as it's utterly boring as hell, have a plan to pay off your debts quicker.  In almost all cases if you over pay the compounding interest savings is tremendous, if you have a mortgage play around with an online early repayment calculator.

5, Have a long term goal, this stops you stressing about any daily fluctuations in any of the above and keep enjoying your hobbies......

 

 

Edited May 3, 2021 by GoldDiggerDave

[LolRasta]

Well said. 

Total agree paying any debt is the most important. With Crypto that's such a unknown I don't buy, I only mine BTC as a little fun side thing (Only worth it if you have a good graphics card) I get about £100 a month with not doing anything,

[Pete]

Just because you made a nice profit on your shares doesn't mean they cannot go higher.
You also state that gold is looking undervalued.

Personally I say the opposite - with global recovery starting as some countries conquer covid there are big opportunities for some stocks to propel and I am waiting for gold to fall a bit as it has had a good session of late.

If you are wanting to lock-in your gains then sell the quantity of shares representing your profits and buy something else.
No-one unfortunately knows the future prices of PMs so half will be correct and half incorrect in their forecasts.

[TommyTwoShots]

Some great responses here. Thanks all.

selling part of my portfolio seems like a good call. I need to rebalance a bit from high risk single stocks to funds and physical gold. I own to much silver, never a bad thing but I still feel gold will rise significantly in the next 10 years.

[sixgun]

Well if i had some tasty profits i think the safest thing to do with be to pay off any debts you might have. The highest interest rate loans as a first.

1 hour ago, LolRasta said:

Total agree paying any debt is the most important. With Crypto that's such a unknown I don't buy, I only mine BTC as a little fun side thing (Only worth it if you have a good graphics card) I get about £100 a month with not doing anything,

That seems pretty tasty - what set up so you have?

[dicker]

If you can spare the cash (before paying the debt). Then look at coins that:

- Don’t have VAT (gold)

- Are CGT exempt (this won’t affect most folk, but worth it if you have a lot of assets, or as a hedge for when the government further reduce the CGT limit).

Personally, Sovs and Britannia’s do this for me.  But it’s horses for courses!

Best

Dicker

[ZigZag]

Hey Tommy,

So this is all about risk management then. It’s a bit like do you you want all your share portfolio in one stock, half a dozen or more? Read many investment books and they will quote you some aspect of asset diversification, which is essentially what you’re suggesting.

When you think about it, buying precious metals, is the same as buying several stocks, rather than having all your eggs  in one basket. You might also consider property and that could yield rental income, go further and it could be collecting art, fine wines, vintage cars etc. Effectively just like individual sectors or stock markets around the world, different commodities, real estate or any type of collectibles can have bull/bear markets at different times. What you suggest gives you an opportunity diversify your risk.

Personally I was heavily weighted to property, land and shares but I’m inching up my P.M holdings, with an eventual aim to have between 5-10% invested in Physical assets. Partly for fun, partly just something else to protect wealth, pretty much along the lines of what @dickersuggests above.

Good luck

Edited May 9, 2021 by ZigZag

[Stuntman]

I am of similar opinion to Tommy regarding the relative values of the stock markets versus gold, which is the opposite of Pete's opinion.  But that's what makes the world go round!

However I do agree with Pete that some markets/some sectors may have quite a bit more upside potential in the short to medium term.  But I am currently tempted to take some risk off the table and sell some of my holdings that have done well recently (for example UK smaller companies, the US market generally).

I very rarely take risk off the table, I am very much a buy-and-hold investor - but I feel that it would certainly not be a bad time to do it now.

Edited May 7, 2021 by Stuntman
spelling

[DarkChameleon]

Best idea is a mixture so one falls the other hopefully gains..mix of gold, silver and platinum.

[Stuntman]

I'm between 5% and 10% in PMs now with about 80% in the stock markets and about 10% in cash.

[DarkChameleon]

10 minutes ago, Stuntman said:

I'm between 5% and 10% in PMs now with about 80% in the stock markets and about 10% in cash.

I've maxed at 15%.

[Stacktastic]

Personally Im going to cash at the moment and liquidating most of my stocks that are not in the red, especially the speculative miners. 

I am also holding physical gold and silver, but prefer cash atm. 

I will be trading and swing trading if something comes along, but nothing long term. 

With regards to silver and VAT, just buy it on here second hand.

Silver is the metal to have I think, mining stocks are great but will also go down if the markets do or inflation really hits hard. 
Gold is not too bad, but I think thats is expensive assuming that there is not depression. a tube of brits is not a silly notion!! 

Crypto. I don't know. a lot of fast money has been made, but we can easily see a complete collapse in that bubble (especially with outlawing it) or at least a 90% correction in the next 5 years based on trust! I own a blockchain stock thats -45% to remind me of the speculative nature of it so im out regardless of the short term money making returns.

To sum up I am hoping to have the time to save as much as possible and buy up cheap high paying dividend stocks that will still be active in 40 years time. spread it wide so it covers the world, especially emerging markets (like Russia) & all sectors - especially tangibles like oil, precious metals & anything required in electrics and batteries/energy creation & things required whatever happens (ie unilever products). 

Edited May 7, 2021 by Stacktastic

[Spark268]

congrats on your success and not letting it go to your head.  

the experience from history is that gold will fall on any equity falls, but only temporarily.

History also tells us that there's no substitute for physical precious metals.

 

 

 

[Stuntman]

39 minutes ago, Stacktastic said:

To sum up I am hoping to have the time to save as much as possible and buy up cheap high paying dividend stocks that will still be active in 40 years time. spread it wide so it covers the world, especially emerging markets (like Russia) & all sectors - especially tangibles like oil, precious metals & anything required in electrics and batteries/energy creation & things required whatever happens (ie unilever products). 

This is broadly what I've been doing every year for about 20 years.  Get rich slowly but build solid foundations, albeit with riskier assets.

[Stacktastic]

54 minutes ago, Stuntman said:

This is broadly what I've been doing every year for about 20 years.  Get rich slowly but build solid foundations, albeit with riskier assets.

Great to hear. I know I can make 3k or whatever over a month or a year on a Dogecoin, pharmo stock investment or whatever, but I dont like the risks on that. 
I have tried a few times, but its a lot of work and severe stress. Plus the stats dont add up as traders dont do any better. 
I have to say its tempting as my friend showed me a £130 investment on some alt coin that has netted £2000 today! 
Thats one of many coins that have done that, he has been polite not to show me his true gains LOl. 
But I dont care, there is something about greed and fast oney that has grown in me in the last few months. 
Cant put my finger on it, but its esoterical I think. I have a lovely home nice life and family, im content I guess? 

With regards to trading and short term investing I dont like the time, effort and stress connected to it. I held lite coin and cardano recently and its stressful buying high. 
I just see the spotty faced millenitals on YouTube and its a red flag for me, especially with crypto they just seem so inexperienced & clueless. 
I cant find anyone credible actually outside of Elon Musk. Maybe I have not looked hard enough?? 

I cant see the markets going much higher over the next 2 years, but maybe I am wrong. 
I said that this time last year and did not invest. 
Happy to sit and wait, but secretly wishing I had parked a few grand in Nividia

What have you bought sold, held and traded out of interest? 
Dividend stocks that are trusted make sense to me, ideally outdie of the US & Europe. 
There isa solidarity and piece of mind having cash in thats especially when at a discount. 
Even if it does tank 20% more and come back it wont matter over 20 years especially with dividends. 
Back that up with real world assets & precious metals then whats not to like about that. 
Basically do the opposite to what you have been taught to do by teachers, media, family & other missingformed people. 😛

I was talking to my mum who has 100k in an investment portfolio tonight. 
She has no idea what it is and does not care if it goes south - amazing to witness!
I dont know the details so hopefully its just tracking the FTSE. 
She is happy with 2% returns - you can get that with a flipping bond,
you know they are using that cash to make at a leat 10-50%!! 

Depending on the sectors or stock discounts I am interested in:

Scottish Mortgage investment for tech - poss Ark investments?
Kazamatron for uranium - maybe Cameco. ideally +4% dividend
BP/Shell or Gazprom for Oil minimum 8% dividend 
Polymetal/Vale for PM's. High dividend +6%
Some sort of war/defensive stock BAE etc. ideally +8% dividend
general emerging market ETF - ideally a high dividend one
farming agriculture stock - not there yet on that. 
Consumer defensive - ideally costco etc. 
Decent large cap gold, copper, platinum miner that pays a +2% dividend. BHP RIO TINTO

I change my mind on a daily basis - so that will be different in a week LOL.
Gertin more honed though and thats certainly not down to lack of effort! 

In 20 - years I might be on Kitco News!

Edited May 7, 2021 by Stacktastic