Buying mining shares for the first time

[EdwardTeach]

I’m interested in investing a small amount of money in a few gold and silver mining companies such as the Galantas gold mine in Northern Ireland. However I’ve never owned any stocks and shares before in my life and I don’t know where to begin.

Can someone provide me with some information on what I will need to do and how to get started?

Edited October 4, 2022 by EdwardTeach

[Foster88]

You might want to have a look at Scotgold (SGZ), they’re a relatively new ish gold and silver mine in Scotland. Their recent results have seemed promising from what I’ve read.

The share price is currently 62p a share.

But like any investment, as I’m sure you’re aware, always do your own research and make up your own mind.

But that’s just one example to look at if you want to buy mining shares closer to home.

I’m not giving investment advice here.

[EdwardTeach]

I'll have a look. Thanks. 👍

How to I go about buying shares though? How does the actual process work and what do I get back to show that I actually own the shares?

[Silverlocks]

31 minutes ago, EdwardTeach said:

I’m interested in investing a small amount of money in a few gold and silver mining companies such as the Galantas gold mine in Northern Ireland. However I’ve never owned any stocks and shares before in my life and I don’t know where to begin.

Can someone provide me with some information on what I will need to do and how to get started?

Might be worth seeing if you can do it through an ISA or SIPP to shield you from capital gains tax and/or income tax.  See a financial advisor on how to set that sort of thing up.  You can also do vaulted PMs through a SIPP, which is more restrictive than an ISA but allows you to claim it off against your income tax or self-assessment tax.

I am not a financial advisor, nor do I play one on TV.  You will probably need to see someone about setting these up.

[Silverlocks]

A little glossary here:

ISA = Individual savings account.  Lets you invest £20,000 pa in eligible funds and other instruments that qualify and shield the investment income from capital gains tax.  You still have to pay income tax on the money you invest.  'Stocks & Shares' ISAs allow you to purchase shares or qualifying funds.  Not all funds are eligible to be traded through an ISA, although I'm not sure what the criteria that qualify or disqualify a fund from this are.  You may need to engage a stockbroker in order to buy the shares, but I would see a financial adviser to see how to set this up.

SIPP = Self Invested Pension Plan.  This lets you invest up to £40,000pa into pretty much anything including vaulted PMs (take a look at Sharps Pixley for an example of such a service) - and (importantly) wheel and deal in the investments if you so desire.  However, it's a bit more restrictive about getting the money out as it's a pension.  You can claim investments into a SIPP against income tax but I think you have to pay tax on money withdrawn.  They are designed (as the name suggests) for pensions.

ETF = Exchange traded funds.  These are funds - mutual and index funds typically - that can be traded through investment vehicles such as an ISA.  'Exchange Traded' means that ordinary plebs like you and me can buy or sell a share in the funds and (most importantly) can flog the funds at pretty much any time.  

 

 

Edited October 4, 2022 by Silverlocks

[Silverlocks]

Note that quite a few ISA products (Vanguard, for example) have an online facility that let you put money in and trade via their web interface.  However, they only offer purchases of funds available through their app.  I'm not sure how (or even if) you can use this type of ISA product to buy shares from outside their ecosystem, so I'd talk to the vendor and find out what is and isn't possible.

Edited October 4, 2022 by Silverlocks

[Silvistone]

I was about to start a new thread called Thinking about buying shares in gold mining companies, until I saw this post so though I would saver the spam and ask it hear

I read a while ago on the money saving expert forum in the investment section (A complete and utter woke agender of goody little two shoes thinking it getting better its getting better then sudanly out of the blue it gets worse, so though I should ask ells where) That buying into gold mining companies has the same risk as buying physical gold bullion but the only advantage is you get dividend payments from the companies profit. I was also told that the share rate value of each seam to mirrow them selfs.

On the other hand I red an artical in UK independent wealth (Hosted by Nigel Ferage for which I am a paid subscriber) written by Rob Marstrand. Stating something on the lines of where shares are doing well you will see a better value on gold mining companies to gold and when shares are doing bad you will see a decline in mining companies share prices compared to gold.

Fortune and Freedom also have a port folio for advice for it members where to invest, and one of those shares is VanEck Vectors Gold Miners UCITS ETF Ticket number GDGB. They say it is a basket of gold mining companies so you get a balanced share price

So let have a look further shall we.....

The first image I have attached is a screen shot from the London Stock Exchange website for the annual share price for WisdomTree Physical Gold ticker number  PHGP

The second image I have attached is a screen shot from again the London Stock Exchange website for the annual share price for VanEck Vectors Gold Miners UCITS ETF Ticket number GDGB.

So in the first half of the chats there is some kind of mirrow image, but in the second part of the chart, Physical Gold stays about the same and the mining companies drop. So dose anyone know what is going on hear?

[Stackem]

Download IG trading app, setup stocks and shares trading account, deposit money, search for share ticker, click buy, enter amount. 🤑😎😁