Newbie introducing myself (and asking if now's a good time to buy gold!)

[katyc]

Hi everyone 👋

I've been hanging around like a quiet little creep for a few weeks now and have just this minute activated Silver Membership. So I thought I'd pluck up the courage to create a post. I'm a beginner/newbie who's read several books, got to grips with economics and invested a considerable amount in physical silver and gold over the last month or two. I also took what I consider a small "gamble" on platinum - but just 2oz of that for now. I have been mostly buying silver due to the ratio situation, solar energy etc and am aware it is considered more risky than gold.

I want to purchase more gold (just 2 or 3oz for now) but am reluctant at the current price as it looks like it could be due a drop (even though inflation is an imminent huge driver of the price). Could you share your opinions on whether I should go for it or wait in hope for a drop? (I realise we'd need a crystal ball for a precise answer - but am interested to hear your views).

I have a small portfolio of 10 properties (which were bought thanks to being an eBay and Amazon seller. Although it took about 13 years of relentless work and stress to get there). My day job (pre 2006) was in accountancy, which I've found really useful when getting involved in retail & investing. Currently I am taking a break from buying property because I feel the stress is taking it's toll on my health/happiness (plus house prices are not ideal at the moment). Thus - the perfect opportunity to buy precious metals! All it does is sit there - no work required - what a dream! I'm happy to hold for 1 year, 10 years, 20 years - whatever really - so it's progression in value shouldn't cause me much stress (touch wood!) - but I'd like to be sure I'm not purchasing at what's considered a really high price which could deflate for years. I also believe that property and gold generally work in opposite trends to each other - so I'm balancing my risk and (hopefully) covered for all situations.

So, that's me 😊. Please say hello and break me in gently! 😬

Edited August 25, 2022 by katyc

[James32]

54 minutes ago, katyc said:

Hi everyone 👋

I've been hanging around like a quiet little creep for a few weeks now and have just this minute activated Silver Membership. So I thought I'd pluck up the courage to create a post. I'm a beginner/newbie who's read several books, got to grips with economics and invested a considerable amount in physical silver and gold over the last month or two. I also took what I consider a small "gamble" on platinum - but just 2oz of that for now. I have been mostly buying silver due to the ratio situation, solar energy etc and am aware it is considered more risky than gold.

I want to purchase more gold (just 2 or 3oz for now) but am reluctant at the current price as it looks like it could be due a drop (even though inflation is an imminent huge driver of the price). Could you share your opinions on whether I should go for it or wait in hope for a drop? (I realise we'd need a crystal ball for a precise answer - but am interested to hear your views).

I have a small portfolio of 10 properties (which were bought thanks to being an eBay and Amazon seller. Although it took about 13 years of relentless work and stress to get there). My day job (pre 2006) was in accountancy, which I've found really useful when getting involved in retail & investing. Currently I am taking a break from buying property because I feel the stress is taking it's toll on my health/happiness (plus house prices are not ideal at the moment). Thus - the perfect opportunity to buy precious metals! All it does is sit there - no work required - what a dream! I'm happy to hold for 1 year, 10 years, 20 years - whatever really - so it's progression in value shouldn't cause me much stress (touch wood!) - but I'd like to be sure I'm not purchasing at what's considered a really high price which could deflate for years. I also believe that property and gold generally work in opposite trends to each other - so I'm balancing my risk and (hopefully) covered for all situations.

So, that's me 😊. Please say hello and break me in gently! 😬

Welcome aboard firstly 🙂

If happy to hold longer term "5 to 10 years" then buying now isn't a cause for concern. Can price's drop short term? Of course and it's a strong possibility, but the whole idea of buying precious metals is..cost averaging. But an oz of gold now at £1500 and say it drops next week to £1400?? Buy another oz. Now you are only exposed £50 rather than £100.

Basically if you spread your buying out,you will be safe long term, rather than jumping in and buying everything at once.

Now that you have a membership you will get access to deals posted instantly, so you will save a considerable amount compared to buying from dealers online. But reputable dealers do have a place also, new releases and for certain items you need for a collection, a few I'd recommend but not limited to are...

Chards.co.uk 

Atkinsonsbullion.com 

ATSBULLION.COM 

Bleyerbullion

sharpspixley.com 

 

[katyc]

7 minutes ago, James32 said:

Welcome aboard firstly 🙂

If happy to hold longer term "5 to 10 years" then buying now isn't a cause for concern. Can price's drop short term? Of course and it's a strong possibility, but the whole idea of buying precious metals is..cost averaging. But an oz of gold now at £1500 and say it drops next week to £1400?? Buy another oz. Now you are only exposed £50 rather than £100.

Basically if you spread your buying out,you will be safe long term, rather than jumping in and buying everything at once.

Now that you have a membership you will get access to deals posted instantly, so you will save a considerable amount compared to buying from dealers online. But reputable dealers do have a place also, new releases and for certain items you need for a collection, a few I'd recommend but not limited to are...

Chards.co.uk 

Atkinsonsbullion.com 

ATSBULLION.COM 

Bleyerbullion

sharpspixley.com 

Thank you so much. I really wish I'd purchased membership sooner and seen the listings before buying hundreds of silver coins. I'd have saved £££s! Oh well, going forward I now know!

Edited August 25, 2022 by katyc

[James32]

1 minute ago, katyc said:

Thank you so much. I really wish I'd purchased membership sooner and seen the listings before buying hundreds of silver coins. I'd have saved £££s! Oh well, going forward I now know!

Yeah I've been there but like everything "time will heal lol" I paid vat on over 1000ozs of silver before finding out the forum existed. 

Your silver will come good eventually and the best lessons in life are usually learned the hard way.

[CANV]

if you own ten properties do you really give a .... about an ounce or 2 of gold....  at that level of property exposure you should be thinking more like 10 to 20 ..   maybe more. 

[katyc]

 

10 minutes ago, CANV said:

if you own ten properties do you really give a .... about an ounce or 2 of gold....  at that level of property exposure you should be thinking more like 10 to 20 ..   maybe more. 

I have just spent nearly 25k on a mix of silver and gold. Now, going forward, I am looking to buy gold regular at 2 or 3 oz a month (as it spreads risk) hence my interest on predictions incase its better to buy a larger qty in a few months (for example). Considerations of current price being due to war  threats, covid, inflation (etc ) can cause short term spikes. I'm new to commodities, so interested on useful opinions from experienced investors, hence the question.

Edited August 25, 2022 by katyc

[katyc]

P.S. 10 properties isn't that profitable with all the regs and taxes..... They have mortgages too.

[CANV]

well to start with, there is no yield and storage is a bit of a risk ..  if you fancy a commodity hedge gold is always the best route.   with income from that many houses id deffo pick up an ounce or three each month and forget about them .   sovereigns all day long  

[katyc]

1 minute ago, CANV said:

well to start with, there is no yield and storage is a bit of a risk ..  if you fancy a commodity hedge gold is always the best route.   with income from that many houses id deffo pick up an ounce or three each month and forget about them .   sovereigns all day long  

Thank you. Out of interest, what's your reason for sovereigns? I've put my metals in a secure location away from home (not with a bank). I'd be interested in what others do for storage to spread risk.

[James32]

4 minutes ago, katyc said:

Fai

I have just spent nearly 25k on a mix of silver and gold. Now, going forward, I am looking to buy gold regular at 2 or 3 oz a month (as it spreads risk) hence my interest on predictions incase its better to buy a larger qty in a few months (for example). Considerations of current price being due to war  threats, covid, inflation (etc ) can cause short term spikes. I'm new to commodities, so interested on useful opinions from experienced investors, hence this question.

2 to three ozs a month is absolutely perfect, over the year period you will have averaged out and covered any dips as safely as possible. The only time I'd recommend going "all in " so to speak, is if I woke up tomorrow and we had an almighty dip..gold was back to £1000 an oz... I'd back up my truck (which I don't have lol) but I go and borrow someone's truck and pile everything I had into it. But other than that, Slow and steady will win the race. 

[CANV]

well you can hide em everywhere.. everyone in the UK loves em and they are at the perfect price pinch point. .  ounces are a bit expensive for most and fractional  Britannia and krugs etc attract a bigger premium. 

if you just want bullion gold in the uk they cant be beaten.   

but after a while you will fancy a gold bar, or a silver engelhard.   we all get sucked in.   

 

sovs are the bench mark. 

[kimchi]

3 minutes ago, katyc said:

...

I've put my metals in a secure location away from home (not with a bank). I'd be interested in what others do for storage to spread risk.

Bury them in gardens/countryside

Just don't lose your maps

[katyc]

(Searches "vans for sale" if only hey.... 😆)

[CANV]

im almost tempted to dig mine out from behind the dog basket and have a look at em. !

[Pete]

No one on this forum or anywhere else for that matter can honestly tell you that PMs will rise in value.
If you check the historic charts over say the past 50 years and compare with inflation you will find that gold has retained its value and nothing else.
That's good of course but had you trickled the same investment into the stock market it would have got you half way to the moon.

In my opinion I believe gold is due a correction downwards and silver is grossly undervalued.
Platinum also is undervalued but these commodities are priced by market forces and some will say manipulated by big financial institutions.
When and if the tides turn we can only wait and see.

You mention you own a lot of properties so why bother tinkering with PMs but that depends on their location and value.
If mortgage rates rise as predicted many buyers will default and perhaps force prices downwards.
People that cannot pay their rents due to the extortionate cost of energy this winter will become a nightmare for landlords.
Then there is capital gains tax to contend with selling property.
 

 

[James32]

1 minute ago, katyc said:

(Searches "vans for sale" if only hey.... 😆)

As @CANV says sovereigns are the almost perfect coin, it's not just getting into gold but you have to have an exit strategy.

If gold reaches £3k in the next 5 years ,what will sell quicker.. a £3k coin or a £700 sovereign? Don't get me wrong buy the odd 1oz CGT free coin now and again, but don't just stack them alone. Sovereigns can be had for spot plus £10 most days and offer far higher liquidity if the need for small amounts of cash arise. 

[katyc]

13 minutes ago, Pete said:

No one on this forum or anywhere else for that matter can honestly tell you that PMs will rise in value.
If you check the historic charts over say the past 50 years and compare with inflation you will find that gold has retained its value and nothing else.
That's good of course but had you trickled the same investment into the stock market it would have got you half way to the moon.

In my opinion I believe gold is due a correction downwards and silver is grossly undervalued.
Platinum also is undervalued but these commodities are priced by market forces and some will say manipulated by big financial institutions.
When and if the tides turn we can only wait and see.

You mention you own a lot of properties so why bother tinkering with PMs but that depends on their location and value.
If mortgage rates rise as predicted many buyers will default and perhaps force prices downwards.
People that cannot pay their rents due to the extortionate cost of energy this winter will become a nightmare for landlords.
Then there is capital gains tax to contend with selling property.
 

 

I had the same view with gold value vs silver correction (from what I've read anyway - but I'm still new to it all so lacking confidence), so I bought more silver and have been a bit reluctant on gold (for now).

Property-wise the attraction is because when property suffers, gold does well and vice versa so its spreading my risk. All my tenants are thoroughly checked and have guarantors so hopefully the impending storm will go OK 🤞😬

Edited August 25, 2022 by katyc

[James32]

3 minutes ago, katyc said:

I had the same view with gold value vs silver correction, hence bought more silver and have been a bit reluctant on gold (for now).

Property-wise the attraction is because when property suffers, gold does well and vice versa so its spreading my risk. All my tenants are thoroughly checked and have guarantors so hopefully the impending storm will go OK 🤞😬

You only loose money if you sell at the wrong time!! If viewing as a long term store of value, then you will do OK in my best guess. If you stare at gold charts everyday forward, you will likely drive yourself insane and jump ship at a loss. After you buy..lock away and forget about it,the next time you see the price is before next purchase ( or you will notice a bit of commotion on here which usually means the price is dropping or rising quickly) my logic is whist it would be amazing to get gold at historically low prices..back in those days it was still a lot of money in comparison, this is our time now and fingers crossed we will be saying thankfully I started when I did.

[katyc]

Yes, short term very rarely works in investing.

BTW, I won't be buying that much each month forever. It will be for a year (probably less). It's a chunk of directors loan that was owed back to me from my investment in my business over many years (I'm certainly not lucky enough to afford 2 to 3 oz a month forever. I bloody wish!)

But it's very interesting hearing your views and I'm going to keep the risk spread as advised. Thank you all!

Edited August 25, 2022 by katyc

[Ukbullionfan]

Silver is trash because of the premiums and the 20 percent VAT added. Look at the current price per ounce for silver, then look and what you can actually get an ounce of silver for weather it be from a dealer or on here. I collect silver because I think it’s cute but at the same time I’m not a cute person I’m a fool. So I’ve decided silver would be a long long longer game plan for me. Silver would be for my kids/grandkids future from now on. 

[Happypanda88]

Hello! @katyc   Welcome to the forum.

Having enough disposable income to buy 2-3 ounces of AU a month is a great position to be in. 👍

There are some good points raised already. But one other point to consider is how would you rate the British Pound (GBP) going forward. Will it strengthen, remain weak or even weaker ? 

As we know, gold like other commodities are priced in USD. A weak GBP against the USD usually means higher gold price in GBP terms. A case in point, over the last few months the price of gold has dropped by 14.5% in USD (and in currencies that are pegged to USD) from its all time high. But in GBP terms, it dropped by only 4.5%. So one has to also factor in the currency exchange rate when speculating on the price of gold going forward.

IMHO, the USD is currently the prettiest out of all the ugly sisters whether it be EUR, JPY or GBP. It is a race to the bottom with all the past QE and pending high inflation.  So it is good that you have decided to invest in some gold as a store of wealth - whether it be in sovereigns or 1oz gold Britannias. 

Just to warn you that there are silver bears on the Forum. By all means read what they have to say. But ultimately, your own analysis may well be equally as sound, if not better !  😁

[modofantasma]

8 hours ago, katyc said:

want to purchase more gold (just 2 or 3oz for now) but am reluctant at the current price as it looks like it could be due a drop (even though inflation is an imminent huge driver of the price). Could you share your opinions on whether I should go for it or wait in hope for a drop? (I realise we'd need a crystal ball for a precise answer - but am interested to hear your views)

Welcome to the forum.

I personally just average in. I buy a couple Oz a month, mainly in sovereigns. Look at the amount you roughly want to put into gold overall and average it over a year or two.

If the price were to dip, ok no problem your next purchases will be cheaper, equally it could go up or stay similar.

[Happypanda88]

6 hours ago, Pete said:

You mention you own a lot of properties so why bother tinkering with PMs

I was left somewhat bewildered when I read this comment. So people with a lot of properties should not bother buying PMs ?! 🤔 

 

[sixgun]

@katyc - is this Katy C?
Are you a woman? - by that i mean adult human female.
To avoid any claims of non disclosure and despite the avatar image i am an adult human male.
i ask the question out of some curiosity b/c the vast majority of members here are men - it appears to me to be one of the differences between the sexes - men collect precious metal coins and bars whilst women don't. It would be good to see more women here - but i must warn you that the language can be uncouth at times.
We have had a few women members but in my experience they are few and far between.

You can set the UK trade forum to send you an email whenever a new post appears - these emails were a bit slow to reach my email box in the past but i think they are pretty quick these days.

My view is that the economy is sliding into an abyss. i have said this for months - if not years. In reality there has been a recession since 2008. Property prices have been pumped up by off the scale immigration, cheap credit and foreign money coming in. Personally i have seen a number of boom and busts in property so the potential for a bust in UK property prices seems more than an off chance in my mind. If i had 10 properties i would be looking to sell some whilst i could. There might be a whole lot of tax and other reasons a person would not want to do that but i do see property prices coming down as the recession bites and interest rates climb. Property prices are set at the margins - it does not need too many forced sales and bank 'repossessions' for a snowball tumble to take place (not that the banks ever actually possessed the property or the currency they allegedly lent).

As far a buying gold - i would buy small coins not ounces - get sovereigns instead - they are easy to sell come the day you decide to.

If you want a yield on gold and silver you might look at https://kinesis.money - i am something like a founding member. The project has been slow to get going but is now starting to get into gear. Last Friday the Jakata Futures Exchange listed the KAU - this is the gold token which is title to ownership of 1 gram of vaulted gold. This is the start of a series of projects in Indonesia, some with the Indonesian government. 

Edited August 26, 2022 by sixgun

[flyingveepixie]

8 hours ago, katyc said:

Thank you so much. I really wish I'd purchased membership sooner and seen the listings before buying hundreds of silver coins. I'd have saved £££s! Oh well, going forward I now know!

Hi @katyc  You're not alone, lots of others (including me) did exactly the same thing before discovering the forum.  Going forward I'll now only consider gold rather than silver. With what I spent on premiums and vat buying silver as a newbie before joining the forum I could probably have had at least a couple of sovereigns more than I have..never mind, we live and learn.

7 hours ago, katyc said:

 

I have just spent nearly 25k on a mix of silver and gold. Now, going forward, I am looking to buy gold regular at 2 or 3 oz a month (as it spreads risk) hence my interest on predictions incase its better to buy a larger qty in a few months (for example). Considerations of current price being due to war  threats, covid, inflation (etc ) can cause short term spikes. I'm new to commodities, so interested on useful opinions from experienced investors, hence the question.

I suggest watching Mike Maloney's "Hidden secrets of money" series on youtube.  There are 9 episodes which explain the economics of currency and pms very well. It's a fascinating watch and a real eye opener although I admit I skipped the episode about crypto.

7 hours ago, katyc said:

Thank you. Out of interest, what's your reason for sovereigns? I've put my metals in a secure location away from home (not with a bank). I'd be interested in what others do for storage to spread risk.

Why sovereigns?   Because they are lauded as "the worlds favourite coin" and very easy to move if you need to resell.

I wonder what you call a secure location..?   You could always get a safe...  

Most people on here in fact own no precious metals at all and boating accidents are very common!

😝