If you have cash that you want to protect on difficult times I will try to explain how to invest money in gold. I will check together with you, how to invest in gold and how it can be done and what are the pros of each of the existing solutions.
At the beginning it should be noted that investors differ in opinions whether it is worth investing in this metal, supporters usually buy gold to safe their capital in case of turbulences on the market. Therefore, the price of gold may not always be very high in order to protect its wealth for the future. Opponents of this method keep away from gold pointing to historical data, which provide that gold is the poor “capital” – (It is worth mentioning, however, that gold had the periods of growth in 2005, 2011.).
In my opinion was to enter here ways to earn money on gold, but no to resolve the dispute. In truth, even I do not know at all whether it is worthwhile to buy gold now … But I will try to say a few words how can we do.
Investing in Gold in the UK:
Unit trust – option for investors in gold, well used can bring quite a nice profit. What is this? How to invest in it? These are actively targeted funds that buy both the same metal as stocks and gold mines, here Evy Hambro oversees BlackRock Gold & General (annual fee of 1.17%) and it is considered as one of the best managers specializing in investments in gold. Other Very Good Funds are: Investec Global Gold (0.87%) or the S & P Global Gold & Resources (0.72% fee) – an advantage of the investments in mutual funds is the active role of manager. We will pay higher commissions here, but there is a chance that an experienced manager notice bargains on the market…. That is why our costs recouped with interest. You should remember that selecting this investment it is worth keeping in mind that that even the best manager did not reverse the negative trend – Fund gains if the price of gold on world markets ,,is not stable”. If the price falls, the units of participation also fall down, of course with losing money.
Popular funds and trusts:
- fund Blackrock Gold & General
- fund JP Morgan Natural Resources
- First State Global Resources
- City Natural Resources High Yield
- BlackRock Commodities Income
Gold exchange-traded funds (ETFs)
ETF follow funds or copy the price of gold on world markets. Some funds buy the physical metal, other only follow the price of gold using the so-called derivatives. Funds can be purchased in brokerage houses and investment brokers. Before the investment, it is worth to check whether the funds are buying physical gold or not – such and other information found in the prospectus of the fund – popular funds investing by ETF are: Gold Securities (annual fee of 0.49%) or the iShares Physical Gold (fee 0.25%). Investment advantage of the process of this type are low costs of the service of fund. Of course, profits are closely linked with the general trend on the market and, therefore, we need to buy cheap gold and sell it at a higher price after a certain time
- ETFS Physical Gold (PHGP) denominowany w funtach
- ETFS Physical Gold (PHAU) denominowany w dolarach
- ETFS Gold Bullion Securities (GBSS)
Buying physical gold, bars of bouillon coins and ounce of gold.
Many of us prefer the direct purchase of bars of bullion and storage its in secure vaults usually by companies, which intercede in the transaction or by the physical possession in home. Of course, the first way – purchase and storage at the company is possible to do by The Real Asset Company. We open account and get a silver coin with a value £ 10.56 or BullionVault – a gift for Opening Accounts £ 3.65. The advantage is that, we can buy gold at low prices, and store it in a chosen by us safe place – ideal investment in gold. We have here several cities to choose: New York, London, Geneva, Zurich or Singapore. Each vault is protected and properly insured from theft. The second way is to buy gold and keep in the house – the advantage of this is that we have direct control of the acquired gold in the absence of anyone else. We can decide whether, when, at what price and to whom we want to sell gold. We do not need to sell it, because we can pass it to our children as part of the inheritance. The disadvantages of personal management of gold can be theft and the costs associated with its safe storage.
And now – where can we buy gold in the UK? There is even a few possibilities … But before I will mention them, short attention – on the question how to invest in gold, the best is to answer yourself, because the price of gold and the investment in gold is often risky, the value of gold is not stable and bullion today is not a model of investment. In addition, our purchases should be limited to branded bars and coins bollion coins and the should not be confused with numismatic coins that are collected by collectors and only have value of collector. Bullion is nothing other than the investment in gold, its value is the weight – no rarity or uniqueness (as in the case of collector coins). I provide here several places where in the UK you can buy bullion coins and bars:
- UK Bullion
- Atkinsons Conins & Bullion
- Bullion by Post*
- Coin Invest
- The Royal Mint
- Gold Made Simple
How to invest in gold, coins and bars?
Krugerrand – popular coin, alloy 0.917 (22 carats)
Sovereign – coin from the UK occurring in one size – quarter of ounce, good for small investment – fineness 0.917 (22 carats)
American Eagle – American coin – 0.917 (22 carats)
Maple Leaf – Canadian maple leaf, 24 carats – 0.9999
When it comes to the bars, it is advisable to purchase bars incused by the world-famous manufacturers, such as: Heraeus, PAMP or Umicore. So, whether the investment in gold is payable or whether the prices of gold are the most important and commonly it is better to buy coins or bars? The investment certainly can pay off when we have our head screwed on straight – in this case even prices may not be high. It is easier to sell coins, because they are Smaller. If you are concerned on the rapid sales of gold, just you should choose them!
It is all. I hope that I managed to write in this article some valuable information on – how to invest in gold in the UK. At the end, I mention that some brokers also offer option contracts on gold, this option gives completely new investment opportunities in the form of simple or more advanced strategies. This option here gives security of position held in physical gold and the use of opportunities in the form of rapid adjustments or dynamic rallies. Investments of this type are not without disadvantages, because brokers do not charge fees for account maintenance. However, they earn on spreads (on the difference between buying and selling rates of the contract). Most brokers focused on trade foreign exchange contracts, and therefore spreads in the case of gold tend to be very high …. In my opinion, you should always try to create investments learning from your mistakes. ‘Nothing ventured, nothing gained”. You can really win, you only need to be vigilant and watch for unfavourable rates of gold.