LargelyIgnorant

Just found a good thread on buying silver in the UK on Kitco:

https://www.kitcomm.com/showthread.php?t=17978&page=7

(link is to page 7 of the thread where they are discussing VAT)

I must confess Gold and Silver have me flumoxed at the moment. Although I freely admit I haven't traded them well, my portfolio is worth less than several months ago and I haven't traded THAT badly. I am now fixed in some longs and won't trade but simply hold. However it still amazes me that G&S remain stuck in a range and keep getting smacked down every time they try to break out.

 

I'm more convinced than ever they are a good investment in the medium term but I'm generating a better return on my cash at the moment! Why is this? I know markets can remain irrational - I'm one of those STRs who STR'd too early (but not much too early). Fortunately housing is now falling back in line with the laws of gravity. However it took far too long (for my comfort) for housing to do this. I hope G+S won't take an equally long time to rise in line with inflationary pressures.

 

Perhaps I should just not look at forums and prices until the Autumn... if the Fed keep bluffing about rate rises and haven't stuck them up by then, then maybe G+S will start getting a second look.

Maybe think about your timescale, what you're trying to accomplish and the risks you're prepared to take. I'm looking to swap gold for a house in the UK in about 5 years time, but also want gold as disaster insurance (the probability of a paper gold default over the next 5 years are, imo, relatively high*). Unless you are able to accurately predict the price of gold (have a look at the people on kitco who spend much of their lives trying to), the spread between spot and the price you can buy physical will probably end up less than the commission you pay for each trade. I've been pound cost averaging into physical gold & silver since '05 (avoiding loading up too much on parabolic spikes) and it's worked well. Some of my numismatics have vastly outperformed bullion, too.

* In the situation where paper gold is defaulted on, it is likely that inflation & money supply will be high. You will end up getting your money back, but there will be such a long lag between the default event and the return of your money (valued on the default event date) that your returned stake will be worth far less.

So, this is where you ended up, GF

How are you? All going to plan, isn't it?