Dabbling with gold

[JK Ferret]

(I've developed a thing for coins since I started trying to get the whole set of shield coins a week or two ago. Only the 50p left to go )

Go into a bookies, they usually have some shields flying around.

[Englander]

I've got dual nationality, so I can be equally patriotic

Hahaha, that gave me a right chuckle

Anyway! Back to the issue of gold investing - is there any particular reason not to invest in an ounce of gold at the moment? My brother (not the most senoir of market analysts, being a 17 year old studying AS economics) claims that gold is set to rise and cited the figure of $2000/oz sometime in the future. I, myself, don't see any reason why gold will plummet in value, what with the large rising markets in China and especially India (my R.E. lessons tell me that the Hindus, of which there are many in India, like gold and stuff) coupled with the finite supply of the metal so I'm assuming that my investment will be moderately safe. Is this assumtion fairly true? I realise that £600 isn't the largest investment in the world, but I'd like to know that it's not likely to just halve in value by next year

Go into a bookies, they usually have some shields flying around.

Lol, my friend recommended the post office but I think it's cheating to go to a place like that to finish the set I've managed to get all bar one just from random change so far

[Stoo]

Oddly enough I was looking at the gold prices this afternoon - While most markets were dropping, Canada, Australia, New Zealand, South Africa, and Brazil were rising..

I think it's a safe investment for smaller sums at the moment, although if you end up with enough, it raises the issue of where you're going to keep it, and how secure that place is..

I think the value will also raise, especially once people start realising these bonds etc aren't actually backed with anything tangible, coupled with the fact that there is only a finite resource available

Unless some bright spark actually manages to pull off alchemy

[Englander]

Oddly enough I was looking at the gold prices this afternoon - While most markets were dropping, Canada, Australia, New Zealand, South Africa, and Brazil were rising..

I think it's a safe investment for smaller sums at the moment, although if you end up with enough, it raises the issue of where you're going to keep it, and how secure that place is..

I think the value will also raise, especially once people start realising these bonds etc aren't actually backed with anything tangible, coupled with the fact that there is only a finite resource available

Unless some bright spark actually manages to pull off alchemy

Yea, storage could become an issue but probably not for a while. Even so, I believe my grandad has a safety deposit box at the bank for his various valuable objects (he refuses to tell me what he keeps in there, but I believe he has some gold and possibly a Kruggerand which is the South African equivalent of a Britannia) so I'd most likely leech some box space off him

You've been a great help in this thread, Stoo, thanks

[Stoo]

np chap

[Rave]

You could ask over at http://www.greenenergyinvestors.com .

Any investment is a risk TBH, gold is probably safer than most in the current climate but there are no guarantees.

[Stoo]

Depends on how long you're looking at I guess

[Output]

I'll admit that I expected a WoW gold spam post too...

Personally I'd never bother with gold coins etc. - I think I'd be too likely to lose them somewhere around the house and never see them again!

[Moby-Dick]

With my Materials Engineer head on I'd got the the Canadian coins which I'm sure are actually a 4 9's purity ( hence the 9999 on it ) - The Mint in Ottowa was particularly proud of this as I remeber.

[watforddude]

I might invest in the moon while im at it.

[KBeee]

Does buying gold coins as a private investor attract VAT? If it does then you'd need a 15% increase in the price + dealers markup to break even.
I remember a few years ago that Sovereigns were VAT free, because they were still legal tender, but a group were buying them, melting them down, and re-selling the gold as jewellery+VAT and making a handsome profit. They were prosecuted for VAT fraud, and VAT got added to subsequent sales of sovereigns.

[Englander]

Does buying gold coins as a private investor attract VAT? If it does then you'd need a 15% increase in the price + dealers markup to break even.
I remember a few years ago that Sovereigns were VAT free, because they were still legal tender, but a group were buying them, melting them down, and re-selling the gold as jewellery+VAT and making a handsome profit. They were prosecuted for VAT fraud, and VAT got added to subsequent sales of sovereigns.

I believe I read that they've been VAT free since 2000 but I'd have to double check that. Either way, www.taxfreegold.com (a website which sells gold) sort of implies that they are exempt from tax.

EDIT: http://customs.hmrc.gov.uk/channelsP...yType=document this link details what is and isn't exempt from VAT. I just scanned through and saw Britannias on the list of exempt coins.

@Rave: thanks for the link, this looks like a very useful forum. Just about to start reading the sticky "A short guide to buying coins", should be useful