Investing in Gold and Silver Bullion (and other Metals)

[BigDL]

I couldn't find any topics on investing in physical precious metals, but keen to get the benefit of the knowledge base on the Hub. 

 

I have started buying Gold and Silver Krugerrands over the past few months. Not in any huge volumes, but trying to decide whether to take savings and buy more, either coins or bars, to try and mitigate against any possible massive fluctuations in the pound around Brexit. At this stage I keep them at home, but if I had any more volume, I would pay for secure storage. 

 

Wondered what you guys think.

[Chris_]

Excellent idea. I think gold is the only thing worth having, I've become super bearish the last year or two, not just SA but the whole lot. I don't know enough about silver other than it follows a very similar trend but I don't know the finer details.

 

The majority of my personal investments are in gold etf's and gold miners, just for a little extra leverage. I'm also happy right now keeping ZAR exposure because I think it's only going to get weaker.

 

One day if/when we move I'll have to have a rethink as to what to do.

[BigDL]

Excellent idea. I think gold is the only thing worth having, I've become super bearish the last year or two, not just SA but the whole lot. I don't know enough about silver other than it follows a very similar trend but I don't know the finer details.

 

The majority of my personal investments are in gold etf's and gold miners, just for a little extra leverage. I'm also happy right now keeping ZAR exposure because I think it's only going to get weaker.

 

One day if/when we move I'll have to have a rethink as to what to do.

Thanks for the response. What are your thoughts about physical gold and silver? Are etf’s basically the same, but you don’t have to hide them [emoji23]?

[Chris_]

I don't actually know much about bullion. At a guess though...

 

Bullion is currency free once you have a chunk of metal and a certificate, and can travel worldwide I guess, etfs are always currency tied. This is a biggie.

 

Bullion may come with pretty wide buy/sell prices plus steep handler(?) fees, etfs costs are minimal and standardised.

 

Bullion as you said you may need to secure, etfs I suppose you need to pay monthly for a trading account.

 

CGT? Do you pay on physical? Etfs you certainly do, thats also a big one.

[Long Wheel Base]

I have a few gold coins, mostly kruger rands and then 2 limited number mint coins. One is a mandela coin. I bought it about 14 years ago and it is now worth more than double what I paid for it. BUT when they say it is worth X, doesn't mean you can get X for it. Depends who you sell it to. I bought mine from scoin shop and they call me from time to time to offer other coins as well as ask if I want to sell the ones I have bought from them and they say they need to value it but they pay you less than what it's worth usually because they can't sell it for more than it's value.

WRT storage, when I bought my first coin from them they told me that they offer a free storage option, they store the coins in some vault at the standard bank in sandton city. Not sure if they still offer that or if it is still free. That obviously won't help you as you don't live in RSA.

[River Rat]

Thanks for the response. What are your thoughts about physical gold and silver? Are etf’s basically the same, but you don’t have to hide them [emoji23]?

Just do a check on the buy and sell ratios on physical gold and silver plus the cost of storage, I think you'll find ETFs are the way to go.

 

[BigDL]

I don't actually know much about bullion. At a guess though...

 

Bullion is currency free once you have a chunk of metal and a certificate, and can travel worldwide I guess, etfs are always currency tied. This is a biggie.

 

Bullion may come with pretty wide buy/sell prices plus steep handler(?) fees, etfs costs are minimal and standardised.

 

Bullion as you said you may need to secure, etfs I suppose you need to pay monthly for a trading account.

 

CGT? Do you pay on physical? Etfs you certainly do, thats also a big one.

CGT here is not applicable if you have Royal Mint manufactured gold or silver coins. Something to do with them being legal tender.

[BigDL]

Just do a check on the buy and sell ratios on physical gold and silver plus the cost of storage, I think you'll find ETFs are the way to go.

 

Many thanks. I’ll have a look and see what Dollar ETF’s I can find

[Eddy Gordo]

Silver also doesn't do too badly. I keep saying I am gonna invest in gold and silver, it I just don't get around to it. Not sure about some precious stones, but might be worth a look as well

[Chris_]

Silver also doesn't do too badly. I keep saying I am gonna invest in gold and silver, it I just don't get around to it. Not sure about some precious stones, but might be worth a look as well

 

I had wondered about Tanzanite long ago, due to the limited supply. But I'm not sure that has played out really, nor the interest levels.

 

(Flawless) diamonds are probably a good one. Although I'd have no idea how to resell, and it seems a murky world thanks to my imagination and lack of knowledge.

[BigDL]

Many thanks. I’ll have a look and see what Dollar ETF’s I can find

Some of the ETF’s I’ve found are showing a 17% ave growth over the past few years. As a comparison, I am currently getting 0.7% on a 45 day notice account. That’s quite startling

[River Rat]

Some of the ETF’s I’ve found are showing a 17% ave growth over the past few years. As a comparison, I am currently getting 0.7% on a 45 day notice account. That’s quite startling

I am more surprised that you are getting 0.7% on a hard currency account.

[BigDL]

I am more surprised that you are getting 0.7% on a hard currency account.

That’s about the average here at the moment. Basically going backwards. Sold a bunch of USD shares to buy a house. House purchase fell through due to issues with the property, so was left with cash. My wife wouldn’t let me buy a 1kg bar of gold to keep in the sock draw, so stuck with cash.

[gummibear]

I couldn't find any topics on investing in physical precious metals, but keen to get the benefit of the knowledge base on the Hub.

 

I have started buying Gold and Silver Krugerrands over the past few months. Not in any huge volumes, but trying to decide whether to take savings and buy more, either coins or bars, to try and mitigate against any possible massive fluctuations in the pound around Brexit. At this stage I keep them at home, but if I had any more volume, I would pay for secure storage.

 

Wondered what you guys think.

I started buying Kruger Rands in 2008 with my bonus and any spare cash I made from buying and selling bikes and parts.

Think it was around $800 or just under per ounce back then.

Best thing was when I left SA I just put them in my carry on bag and no cost.Nothing like trying to move Rands from a bank across the seas.

 

Last I bought was in 2017 and now just hanging onto what I have unless gold price drops then I might buy a few again.

I’ll sell them off when my kids go to varsity if I need to.

Only cost involved is €140 per year for my box at the bank.

[BigDL]

I started buying Kruger Rands in 2008 with my bonus and any spare cash I made from buying and selling bikes and parts.

Think it was around $800 or just under per ounce back then.

Best thing was when I left SA I just put them in my carry on bag and no cost.Nothing like trying to move Rands from a bank across the seas.

 

Last I bought was in 2017 and now just hanging onto what I have unless gold price drops then I might buy a few again.

I’ll sell them off when my kids go to varsity if I need to.

Only cost involved is €140 per year for my box at the bank.

That’s sort of what I’ve been doing with krugerrands. I have this idea of handing them out to grandkids on significant birthdays etc at some time in the future.

 

However, I have seriously been considering buying more as an investment to hedge against brexit in some way.

[DJR]

My neigbour is a little bit of an eccentric and he tends to hang out with equally unusual oddballs. One of his loves is for classic British cars from the 1960s. He owns and drives a pristine MGB GT to work every day. His highdays and holidays drive is a beautiful unrestored Jaguar E Type. Recently he decided that he needs a saloon car for trips with friends. Two seaters being a bit limiting and he doesn't like the way other people drive. So, he found a Jaguar 380S ...............here's the catch..............the previous owner insisted on payment in the form of Kruger Rands! They agreed there and then and the deal was done! I liked the idea that it was still possible to buy a car with a few coins that you could hold in the palm of one hand!