A beginner’s guide to investing in gold

Gold has been sought after for its unique blend of near indestructibility, beauty, rarity and because of its status as a means of exchange and universal currency par excellence for centuries.

Empires and nations have sought to possess gold as a medium of international exchange, as a store of wealth and in order to increase and preserve power. Individuals have used gold as a store of wealth and as insurance against the fluctuations and depreciation of paper money and to protect against other macroeconomic and geopolitical risks.

Throughout history, perhaps no other asset in the world has had the universal appeal of gold and this appeal has increased in recent times due to the very significant macroeconomic, geopolitical, monetary and systemic risk facing our modern global financial system and economy.

Successful investing is about the diversification and management of risk. In layman’s terms this means not having all your eggs in one basket. We know from history that markets can and do crash and if you are not properly diversified your nest egg can be severely affected.

Gold investment pyramid

So a healthy portfolio will include a wide range of assets including a variety of equities with exposures to different market sectors and regions; a variety of different countries’ bonds of different durations; a diversified property portfolio; a cash component and a 5-15% allocation to gold related investments and gold bullion. In these uncertain times, caution and risk consciousness is crucially important and counterparty and systemic risk should be considered.

The key is to determine what amount of each asset class to have and to own assets that will whether the onslaught of inflation, deflation, stagflation and even hyperinflation.

Some exposure to gold should be included in all diversified portfolios. A good rule of thumb would be a minimum allocation of around 10% to gold and related gold-investments.

One’s motivation for buying gold is fundamental to deciding in which form you should buy it. Are you a speculator, investor or saver? Do you wish to take a short term speculative position in gold? Are you investing for the short, medium or long term? Or are you diversifying, saving or using gold as a form of financial insurance?

Investing in physical gold

Physical gold should form a part of a properly diversified portfolio. Gold remains a universal finite currency, held by every central bank of note in the world. And central banks are set to become net buyers of gold in 2009 for the first time since 1988. The Indian Central Bank’s purchase of 200 tonnes of gold from the IMF in October 2009 ( and a further 200 tonnes is being acquired) is the biggest single central bank purchase in such a short period of time (at least known to the markets) for at least 30 years.

In the same way that the family home should not be regarded as an investment, gold bullion is not an investment per se, rather a form of ‘saving for a rainy day’ or of financial insurance. It is to be taken possession of or stored with a secure third party and should not be traded. One does not trade an insurance policy and thus as a form of financial insurance, physical gold should not be traded.

Gold is money and is the ultimate safe haven asset and a great way, if not the best way, of ensuring wealth preservation and for passing wealth from one generation to the next. Once the solid base or core holding of gold bullion is achieved in a portfolio then other investments in gold such as mining stocks and mutual funds and other more speculative gold investments can be considered.

Modern bullion coins and bars

Modern bullion coins allow investors to own investment grade gold (between 0.90 and 0.9999 fineness) legal tender coins at a small premium to the spot price of gold as quoted on the markets. The value of bullion coins and bars is determined almost solely by the price of gold and thus follows the bullion price. Larger bars are not generally taken delivery of due to the cost of insured delivery and the security implications of having very large amounts of bullion outside the chain of integrity (say in a private residence). A London Good Delivery Bar weighs 400 troy ounces and costs over $400,000, £270,000 and €300,000 (prices as of 20/11/09) and is prohibitive in terms of cost and thus big bars are normally the preserve of large companies, institutions and central banks.

Gold, silver, and platinum are all available in the form of bullion coins, minted in the UK, the US, in Canada, South Africa, Austria, Australia, China and other countries. Most bullion coins are minted in 1/10oz, 1/4oz, 1/2oz & 1oz form (and some can be bought in 2oz, 10oz & 1 kilo). However, one ounce gold bullion coins such as Krugerrands or Britannias are by far the most popular for both small investors and high net worth individuals who see the advantages of owning legal tender bullion coins, either in their possession or in depositories, and recognise the advantages of the divisibility afforded by them.

Buying investment grade gold bullion for investment is stamp duty free and tax free (VAT exempt) in the UK and EU due to the EU Gold Directive of 2000.

For free and impartial information on where and how to buy gold bullion coins and bars, see MoneyWeek’s comparison of leading gold brokers.

Semi-numismatic and numismatic gold coins

Numismatic or older and rare coins are bought not solely for their precious metal content but also for their rarity and their historical, aesthetic appeal. They are leveraged to the gold price which means that the price of these coins will generally surpass and increase faster than the gold price in a bull market (due to their historical and aesthetic value and to their rarity) and will decrease by more when gold is in a bear market.

The British Gold Sovereign (originally the one pound coin) is the most widely traded and owned semi-numismatic gold coin in the world. Important is the fact that, unlike the other forms of gold investment, British gold sovereigns are not subject to capital gains tax (CGT). Thus all post-1837 British gold sovereigns – because they are legal tender and have a legal tender face value – are capital gains tax free, which is obviously a significant benefit to investors vis-à-vis other gold investments.

Also highly owned are high-quality pre-1933 gold coins graded MS-65 or better by either the Professional Coin Grading Service or the Numismatic Guaranty Corporation. They are bought by both collectors and investors and most opt to take possession of these older coins unless they have invested in significant quantities.

Insured delivery of bullion and numismatics is usually some 1%-2% of the total value.  Insured storage of bullion and numismatic coins in an allocated account will cost some 1% per annum. Investors should choose their storage provider carefully, making sure of a high credit rating and high net worth. This leads some to prefer an offshore bank or specialist depository.

For free and impartial information on where and how to buy gold bullion coins and bars, see MoneyWeek’s comparison of leading gold brokers.

Gold certificates

The Perth Mint Certificate Programme is the only government backed precious metal certificate programme in the world. It allows investors to own bullion in unallocated or allocated accounts. The Perth Mint retains its AAA credit rating from Standard and Poor’s and Moody’s and is one of the safest and securest ways to own investment grade gold bullion. There are no initial or ongoing shipping, insurance, holding or custodial fees and thus it is one of the most cost effective ways for investors to own bullion over the long term.

Gold certificates are liquid and can be sold easily (soon investors will be able to buy and sell in real time online). Most investors opt to own their bullion in unallocated accounts as there are no insurance or holding fees on them and there is the flexibility of being able to transfer to an allocated account simply by paying small fabrication fees should the investor deem it necessary. Every gold bar is audited and accounted for and it is thus considered a safe way to own bullion. Bullion in a format of your choosing (coins or bars) can be shipped internationally from an allocated account or from an unallocated account once it has been converted to allocated.

Providers: GoldCore

Allocated accounts

Allocated gold accounts allow an investor to buy gold coins and bars from a bullion brokerage which will transfer or ship the bullion to an individual’s account in a depository or bank. Allocated accounts involve ownership of specific gold and the owner has title to the individual coins or bars. Due diligence should be done on allocated gold account providers and the history, security, credit rating and net worth of the provider is of vital importance.

Providers: GoldCore, specialist depositories

Digital gold currency or e-gold

Digital Gold Currency, goldgrammes or e-gold are also increasingly popular. There are no specific financial regulations governing DGC providers, so they operate under self-regulation. DGC providers are not banks and therefore do not need to comply with bank regulations and there are concerns that there are unscrupulous operators operating in this emerging sector.

However, two of the more respected providers who have rightly garnered trust are Bullion Vault and Gold Money. They offer allocated accounts where gold can be instantly bought or sold just like any foreign currency. Every gold bar is audited and accounted for and it is thus considered a safe way to own bullion. Digital gold is primarily used by clients to buy gold for saving or as an investment and/ or as electronic money amongst users.

Providers: Gold Money, Bullion Vault

Gold bullion in SIPPs

UK citizens can as of April 2006 invest in gold bullion through their Self-Invested Personal Pensions (Sipps). US citizens could already do so in their Individual Retirement Accounts (IRA’s). Sipps are new types of personal pension scheme that hold investments until you retire and start to draw a pension income. They are designed for people who want to manage their own fund by investing in asset classes of their choice. Investments made in gold bullion are topped up in the form of tax relief, meaning individuals can claim up to 40% back depending on the income tax band they fall in to.

Gold bullion is allowed in a Sipp providing it is investment grade gold which is gold of a purity not less than 995 thousandths or 99.5% pure and which is in the form of a bar, or of a wafer, of a weight accepted by the bullion markets. The bullion must be immoveable and stored with a secure third party. It cannot be taken possession of and used as a “pride in possession” article. Thus ETFs, some digital gold providers, allocated gold accounts and gold certificates are all allowed in the new SIPP.

Providers: GoldCore, Bullion Vault

Investing in paper gold

Mineral exploration, mining and the processes used to mine and produce metals are highly technical. Investors in gold production and exploration company stocks need to equip themselves with a basic understanding of the industry, in order to identify possible pitfalls and the risk-reward relationships of entering this investment sector. Investors should generally not buy just one or two stocks, but rather a basket of unhedged stocks or a mutual fund.

Derivatives, such as ETFs, forwards, futures, options and spread betting are normally short term speculations on the future price of gold and other markets such as commodities, shares or bonds, interest rates, exchange rates, or indices. They are financial instruments which derive their value from or whose price is dependent on the underlying asset. One does not directly own the underlying asset and one does not have a right to take possession of the underlying asset. Leverage or borrowing substantially may increase investment gains but also increases risk as if the price goes against the purchaser they may be subject to a margin call. There is significant leverage involved with derivatives and they are thus considered risky for non professionals as the potential positive or negative outcome is greatly magnified.

Gold exchange traded funds (ETFs)

The recently launched ETFs are derivatives that track the price of gold and silver. Two of the more popular are the Streettracks Gold Shares (NYSE:GLD) and in London, ETF Securities’ Gold Bullion Securities (LSE:GBS). They can be bought through stockbrokers.

There is an annual administration fee of between 0.4% and 0.5% per annum. Thus every year the amount of gold or silver backing an ETF share shrinks by that amount. This makes them unattractive as a medium or long term way to invest in gold. They are akin to derivative contracts that track the gold price and one does not own or have title to the underlying asset. Thus they are primarily used by day traders, hedge funds and institutional players going long and short and speculating on short term movements in the gold price.

Providers: Stock Brokers, Online Brokers

Gold stocks

Gold stocks are not gold – rather they are shares in gold mining companies. If the gold price rises, profits of a gold mining company should rise and as a result the share price should rise. There are many factors to take into account and it is not always the case that a share price will rise when the gold price increases. It is important to consider the performance and abilities of the management, auditors and geologists; the conduct of trade unions; a company’s gold hedging position; whether it is producing or exploring; its cost basis; how much reserves it has in the ground and whether it is subject to political, economic, nationalisation or environmental risk.

Individual gold shares would be regarded as very volatile and high risk. Gold shares are regarded as more speculative as there is a higher risk-reward scenario. However, the added risk can be compensated for by the leverage which can result in higher returns. Such higher returns would be expected from mid and large-capitalisation un-hedged senior gold mining companies with proven reserves and strong earnings which have strong balance sheets and growth in resources and production and effective company management.

Providers: Stock Brokers, Online Brokers

Gold stock options

Stock options are a contract between two parties that expires at an agreed-upon time in the future. The contract purchaser is buying the right, but not the obligation, to buy a gold mining stock (a ‘call’ option) or sell (a ‘put’ option) a gold mining stock (the ‘underlying’) at a specific price, on or before the agreed-upon date, the date of expiration.

Stock options allow for a lot of leverage as a trader can control a large stock position with only a small outlay. However due to the very short term of the option contracts, they can expire worthless with the entire outlay being lost. Stock options allow speculators to make bets on market movement without having to pick an up or down direction. Because of this, stock options traders are often said to be trading volatility rather than price.

Providers: Online option brokers such as Options Express and E-Trade and certain stockbrokers

Precious metal unit trusts or mutual funds

Instead of personally selecting individual shares, some investors spread their risk by investing in collective investment vehicles specialising in investing in the shares of gold mining companies. These include mutual funds, open-ended investment companies (OEICs), closed-end funds, unit trusts. Two of these funds are the UK-based Blackrock Gold & General Fund and the Canadian Sprott Gold & Precious Minerals Fund by Sprott Asset Management. There are many precious metal funds in the US but investors assume US dollar currency risk when buying them.

Collective investment vehicles are a good way to invest in the precious metal mining sector as an investor’s risk is reduced; mutual funds are not dependent on the performance and profits of one or two  individual gold mining company and specialists in the field choose a portfolio of gold mining companies.

Providers: Blackrock Gold and General Fund, Sprott Gold & Precious Minerals Fund

Gold futures

Gold futures are traded on exchanges in London, Tokyo, Sydney, Singapore, at the New York Mercantile Comex Exchange (COMEX), the New York Mercantile Exchange (NYMEX) and at the precious metals department of the Chicago Board of Trade (CBOT).

Gold futures contracts are firm commitments to make or take delivery of a specified quantity and quality of gold on a prescribed date at an agreed price. Investors may take or make delivery of the gold underlying the contract on its maturity although, in practice, that is unusual. A benefit for some is that such contracts are traded on margin, so that only a fraction of the value of the contract has to be paid up front. As a result an investment in a futures contract, whether from the long or the short side, tends to be highly geared to the price of bullion and consequently more volatile.

They are normally the preserve of some mining companies, speculators, hedge funds and institutions. The leverage makes them a high risk/high reward investment. Participants are either hedging the gold price or attempting to predict whether the value of gold will rise or fall in the short term. Gold futures contracts are valuable trading tools for commercial producers and users of the metal to hedge their price risk.

Success depends on the price movement of gold during the contract term. Traders in these markets without protective stop-losses can quickly find themselves on the wrong side of a fast moving trade, losing large sums of money. Part of the risk is due to the leverage involved which can result in a speculator losing more than their initial capital outlay. Therefore, futures markets are not for amateurs or novice investors.

Providers: Commodity Brokerages, Online Brokerages such as Internaxx

Gold futures options

All the bullion banks trade in gold options and a list of bullion banks is available from the London Bullion Market Association (LBMA). Another way of trading options is through the COMEX Division of the New York Mercantile Exchange. The third route would be to contact a futures broker. They are often used to contain risk in the trading of futures.

Providers: Commodity Brokerages, Online Brokerages


An alternative is to use spread betting to gain leveraged exposure to precious metals. Firms such as Cantor Index, CMC Markets and IG Index offer the ability to take a bet on the price of gold through what is known as a spread bet.

No commissions or taxes are levied in the UK on spread betting. The advantages are that any gains are CGT free and one can also take a view on movements in either direction. The downside is that in a spread bet the spread can be high, your exposure is geared up and short term bets are risky as it is extremely difficult to forecast any markets short term movement. One can lose more than the initial capital thus they are for speculators with very short term horizons rather than investors.

You can compare leading spread betting accounts here

The World Gold Council is a good resource for investors looking for established and reputable providers of gold related investments in the UK and internationally.

Assessing your options

One’s motivation for investing in gold is fundamental to deciding how to invest. Are you a speculator, investor or saver? Do you wish to take a short term speculative position in gold? Are you investing for the short, medium or long term? Or are you diversifying; saving or using gold as a form of financial insurance (gold’s primary role)?

When assessing one’s gold investment options one must decide what one’s motivation is. Once this is done, the primary considerations which should be looked at are the costs (both upfront and possibly recurring annual fees), proximity to your asset and perhaps most importantly today counter party risk.

In the table below we have looked at the various vehicles for accessing the gold market and graded them with regard to cost, ability to take delivery and, most importantly, proximity to your gold and counter party risk.

Type Costs Risks Delivery Considerations
Initial Recurring Counter party risks Proximity Investor suitability Physical delivery?
Gold certificates Med V good(none) Low Good Diversifier Yes Consider solvency & credit rating. A sovereign AAA credit rating and govt. guarantee is best.
Bullion bars/coins delivered Med V good (none) Low V good Diversifier Yes Use safety deposit boxes, home or office safes, and insurance.
Bullion bars/coins stored Med Med Low Good Diversifier Yes Consider the solvency and credit rating of the depository. Safety and security are key.
Gold bullion in SIPPS Low Low Low Good Diversifier No Make sure you get impartial fee-based asset allocation advice.
Semi numis matics High Low Low Good Diversifier/
Yes Premiums can vary. Get reputable and professional advice before purchasing.
Digital gold Low Low Med Med Diversifier/
Some do Concerns over dependence on technology (internet, website, servers, etc) which is attendant risks.
Exchange traded funds Low High Med Poor Speculator Large minimum Suitable for speculators, own shares in a trust and not gold. Annual costs quite high at 0.5% per year.
Precious metal unit trusts Med High Med Poor Diversifier/
No High annual charges (funds can have hidden charges). Analyse the prospectus fully.
Gold stocks Low Low High Poor Speculator No Very volatile. Management, geologist, auditor, trade union, environmental and nationalisation risk. Seek advice.
Gold futures Low Med High Poor Speculator Yes Only suitable for speculators. High risk, involving leverage. Seek advice.
Spread betting Med Med High Poor Speculator No Only suitable for speculators. High risk, involving leverage. Need to monitor trading constantly. Seek advice.

In an age of significant systemic risk, proximity to the underlying asset is increasingly important. Investors are increasingly wary of having too many counter parties (brokerages, banks, trustees, custodians, sub-custodians, delegates of sub-custodians etc.) between them and their asset. If storing gold with a third party, it is important that you have a direct relationship with that counterparty and there is not significant intermediation and thus increased risk. Another consideration is the ability to take delivery of gold in the event of a systemic crisis.

Investing in gold: conclusion

As we have seen, there are major differences in the various motivations for buying gold and ways to buy gold – from trading and speculating to investing and saving.

Holding precious metals in a portfolio can provide distinct benefits in the form of speculative gains, investment gains, hedging against macroeconomic and geopolitical risk and / or wealth preservation. Traditional asset allocation theory, as represented by the investment pyramid, advocates higher risk speculations at the top, with lower risk assets at the bottom. Commodity futures contracts, options and exploration junior mining companies should be placed at the top of the pyramid, while cash equivalents and fully allocated or taken delivery of physical bullion should form the foundation or base.

Experienced and knowledgeable investors have long known that gold and gold related investments can be solid investment choices. Gold is stable in times of global geopolitical instability and when there is economic uncertainty, recessions and depressions. It is important that investors look at their portfolios holistically. Used correctly, gold and gold related investments can be highly effective components of a properly diversified investment portfolio.

• This article was written by Mark O’Byrne, executive director of international bullion dealer GoldCore. GoldCore has an international media profile (CNBC, Bloomberg, CNN, BBC, FT, Wall Street Journal, Bloomberg, Dow Jones, Associated Press, Reuters etc.) and takes part in the Reuters Precious Metals Poll and the Bloomberg Gold Survey.

ScreenHunter_01 Mar. 25 09.51

My number one gold investment

Simon Popple

Hi, I'm Simon Popple.

I've been investing in gold for a long time now. I've seen huge bull markets, and of course, I've invested through the downswings too.

And there's one particular area of the markets I believe offers the best way to tap the true potential of gold.

It's a niche type of gold investment that I've personally backed with half of my life savings. What's more, I think right now is a fantastic time to consider this type of investment.

I've compiled all of my research on this opportunity into a special new report – you can see it here.

Metals and Miners is a regulated product issued by Fleet Street Publications Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA No 115234). Your capital is at risk when you invest in shares, never risk more than you can afford to lose. Please seek independent financial advice if necessary. Fleet Street Publications Ltd. 0207 633 3600.

Disclaimer: The information in this document has been obtained from sources which we believe to be reliable. We do not endorse any of the investment providers mentioned in this article. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors’ interests. Income levels from investments may fluctuate. GoldCore Limited (
www.goldcore.com ), trading as GoldCore is regulated by the Financial Regulator of Ireland.

47 Responses

  1. 20/07/2011, alex wrote

    Just to point out, using a spread bet doesn’t need to be that risky. Just because a spread bet firm will let you buy gold at say $1600 with an auto stop at $1500 using just £100 in margin doesn’t mean you have to accept/stick with that stop loss.

    You could move the stop loss down to say $300 using £1300 in margin and sleep easy/forget all about the trade.

    A £1 a point bet will be the equivalent of buying £1600 worth of gold and you’ll have to pay the spread bet firm a daily interest charge to reflect the funds used, approx £48 a year in the example above ( assuming a rate of 3% ).

    Oh and one more thing, it was the British Empire that favoured Gold, historically whether China, the Roman Empire, the Spanish Empire etc, it was always Silver that was used as money, NOT gold.

  2. 28/07/2011, Kali wrote

    Alex, The Spanish erased the entire Incan civilisation in the name of gold and, along with lucky red, no one loves a bit of gold more than the Chinese. As for the Romans, they were using the gold “ducat” as currency from 1140 onwards. I’d say it was a fairly universally valued metal

  3. 22/08/2011, Ayel wrote

    I agree with Kali. Not just the Incas, but also most of the indigenous tribes of Central America were raped and pilfered by the likes of Christopher Columbus and the delightful crew of pirates that were so GENEROUSLY bestowed by Queen Isabella and King Ferdinand.

  4. 13/09/2011, Adam Pike wrote

    In today’s rather bleak economy buying gold is not only advisable, but necessary. It is recommended we all allocate 20% of our investment portfolio into gold bullion. My advice for a long term investment would always be physical gold over ETFs. Gold investment is quick, easy and secure whether it be conducted online or in person. There are many reputable bullion dealers in the UK who make buying gold straight forward. Is it still a good time to buy gold? I believe so.

  5. 04/10/2011, Jane Johnston wrote

    Keen to buy physical gold, but who can I trust to sell me it?

  6. 09/11/2011, Daniel wrote

    In my opinion, for most private investors the best option to invest in gold in terms of costs and safety is to buy vaulted gold. Vaulted gold (also known as allocated gold accounts) means the investor acquires outright ownership in 100% physical gold which is professionally stored by a vaulting operator on behalf of the investor.

    As Mark correctly points out, due diligence should be done on the providers and the security, credit rating, net worth and history of the provider is of vital importance.

    Under http://www.trustablegold.com we compare providers of vaulted gold by objective and transparent safety criteria and costs. We check whether vaulting is done by an independent vaulting operator, regular inspections and audits are conducted, delivery of the gold can be taken, etc.

  7. 16/11/2011, Dalglish wrote

    Has anyone used this company? Any recommendations…


  8. 24/11/2011, Christian wrote

    Trustable Gold provides an overview of providers of vaulted gold for private investors.

  9. 19/12/2011, Adam wrote

    Here at Bullion By Post based in the UK we’re seeing exceptionally strong demand for gold bullion on the back of the gold price falls, with gold sovereigns and Britannias proving to be extremely popular. Our customers believe the recent price dip will soon be recovered as we’ve seen our UK customer base use the dip as a buying opportunity with investors increasing their gold holdings.

  10. 20/12/2011, Ade wrote

    Dalglish… yes i’ve used the bullionbypost.co.uk site now for around 2 years. Can’t recommend them any more highly, top service, nice people, good price, free p&p, fully insured and they always despatch on the same day as payment.

    I’ve used 2 or 3 other uk bullion dealers who also did the job well enough, but I’d stick with bullion by post who seem to be the major player in physical gold thesedays.

  11. 03/01/2012, charlie T wrote

    Likewise, bullionbypost are the best uk bullion dealer from my experience. Good website with great content if your new to gold investment. Nice, speedy and effortless order process with next day delivery (fully insured too). They never let me down in 2 years / 10-12+ orders.

  12. 05/02/2012, james wrote

    has anybody used uk bullion thanks

  13. 06/03/2012, johnny wrote

    yes james, I’ve used uk bullion – they’ve been around a long time but the service was average at best, slow delivery, clunky site.

    I’va also used bullion by post as mentioned above – much better experience, great site, good prices and next day delivery.

  14. 12/03/2012, alexcox wrote

    I have used bullionbupost and uk bullion. Have decent reports for both. Recently used yourgoldfund who are new suppliers to the public but very old in terms of dealing with the trade. Also excellent, would highly recommend.

  15. 14/03/2012, alex_morgan31@yahoo.co.uk wrote

    @2 Kali, the roman empire is generally accepted to have ended around 550 ad.

    And Spain was in search of silver predominantly not gold.

    China inspite of what you imply used silver, not gold for coinage.

    As for the Inca, I think you’ll find that they had gold but didn’t value it or use it as a store of wealth. Actually they referred to it as something which almost literally translates as the ‘**it of the gods’.

    There’s one thing about you gold bugs, you very seldom bother to get any facts behind your argument, or rather belief in gold.

  16. 23/03/2012, JayJay wrote

    I think that the question that the most people have is how to buy gold . There are a lot of businesses that will help you with it. It is quite easy and it is really profitable at the moment. Gold prices are still rising.

  17. 25/03/2012, Charlie wrote

    Hi, has anyone had any experience with Gold Asset Management?

  18. 25/03/2012, Charlie wrote

    Sorry, it’s http://www.goldassetmanagement.co.uk they seem knowledgeable on the market and offer a good service, I really just wanted to know If anyone had used them?

  19. 02/04/2012, scrooge wrote

    Ok so can the average guy go out and buy gold an still really see it as an investment? Because the way I see it gold for sale, say online is already marked up by seller then if you sell it you pay the price offered which again includes a mark up, just like foreign currency exchangers, its loose loose! Or I am I wrong on this?

  20. 13/04/2012, Carrie wrote

    The article suggests that gold investment is best kept as an asset to pass on as an inheritance. Is it still worth buying as a shorter term investment? I’m thinking about buying coins and selling in 10 years time for my sons university education, or in 30 years time for my retirement. Is it easy enough to sell? What are the chances of making a good profit in this time?
    Any advice welcome.

  21. 24/04/2012, Trumosh wrote

    Gold investing requires precision and a lot of patience. I see now companies offering old people money trading for their gold jewelry and waiting for the profit after 10 years. Here they say a lot about investing in gold. Also in eucalyptus:


  22. 25/05/2012, Vimala wrote

    Can someone suggest me how to choose a best stock market broker? To my knowledge it is the share broker’s advice that can keep your investment safe and profitable.. Do let me know if you have any details about how to select a good share market broker

  23. 28/05/2012, hammer wrote

    Where and how do you sell gold on when you want to sell it on for cash
    is it an easy process?

  24. 09/06/2012, SimpleGS wrote

    Good article. Selling gold and silver is a pretty simple process – but you can also get ripped off! Its best to check several dealers for prices, as well as ebay.


  25. 12/06/2012, Lisa wrote

    Hi ,I have heard about share holding in gold and STRATE and JSE where you can bay online.But where do I go?how much does it cost ? etc..? . I dont know much about share holding ..I am still in School .
    . . Can someone help please?

  26. 05/07/2012, brian wrote

    Really good piece, very interested. Buying and selling gold is easy online. I recommend the bullionbypost.co.uk service. Best to go direct to the uk’s top bullion supplier when investing your hard cash… better safe than sorry. Used them 3/4 times now for sovereigns & britannias over the last 2 yrs with several of my colleagues having even more experience of them. They also buy back bars/coins at good prices over the phone, money back in your account the next day. I’d always advise people to take physical ownership of their gold, if its not in your hands you don’t own it!


  27. 26/07/2012, David wrote

    Excellent article. From my point of view it is an ideal time to buy physical gold. Sit on it for 5 years plus and then enjoy the rewards. Bullion By Post are an exceptional dealer. Very nice people to do business with. Highly reputable.

  28. 17/08/2012, Daniel Labo wrote

    I think this might be interesting too: http://www.gold-business.us

  29. 18/08/2012, Jerry wrote

    Not a very good article. Always take possession of your gold and silver. Avoid paper gold unless you fully understand what the additional risks are and know what you are doing . Also gold really is not a currency or money in my opinion.

  30. 02/09/2012, Duncan wrote

    I don’t pretend to have the intelligence to understand this subject enough to know whether to trust the motives behind these folk who tell us gold is the answer. I just think the banker classes (those who push this) and governments will make sure the rest of us will never get ahead financially, and will endeavor to steal any savings we have been fortunate to work our backsides off for. If we all had gold then do you really trust HMG would not go after you to bail out the wrecked economy? I don’t.

  31. 16/09/2012, Caz wrote

    gold investors spending over about 5k often need to show ID because of money laundering regs. So I guess gold bought like that is traceable. The risk of confiscation is major in my view. Yes its Surprising that there is no mention of it here. There is lots of information on the Internet but uk orientated advice is where? What can be done if youve got traceable gold to protect the investment

  32. 23/09/2012, roman wrote

    With a wrecked economy which we could most likely have soon , confiscation is almost a sure thing as history suggest.
    Could one buy and hold withut being held exposed and or identified.
    I cannot see this possible however has anyone got some insights.

  33. 23/09/2012, roman wrote

    Has anyone got a method of holding physical gold untraceable,
    In case of an economic collapse confiscation is pretty much expected as history has shown.

  34. 22/12/2012, Belinda wrote

    Remember that gold is being mined and as the price goes up, more and more mining operations become profitable. This increases the supply and drives down the price. Most gold is not consumed. It just goes back into a hole in the ground called a vault somewhere. There are hundreds of tons of the stuff just sitting in vaults collecting dust. You can’t eat it. It has very little industrial use and in a wrecked economy it may have very little value. If you are in a wrecked economy you need something to exchange that is valuable to people able to offer you the goods and services you need. In such circumstances gold may be less valuable than a can of beans.

  35. 27/12/2012, George wrote

    There is a feeling that the price of gold could double over the next few years. That could surely only happen if there were a serious foreign exchange crisis, probably centering on the euro. Therefore most of us below the super-rich level will be in big trouble for the following ten years. Think on these things!

  36. 11/01/2013, US Gold Bureau wrote

    Nice post. You really have provide a great information regarding gold investment. As gold is good idea for investing but for beginner is so important to think carefully, plan well. And if there is nay doubt then should take advice of professional.
    US Gold Bureau

  37. 15/01/2013, Mr. Prepared wrote

    Belinda, you raise a good point but the scenario you refer to is not a wrecked economy but a wrecked society and civilization. In a wrecked economy money and financial assets would still be usable though perhaps with far reduced value. For dealing with a collapse of civilization the numerous survivalist web sites will be more useful then an investment site.

  38. 16/01/2013, Andy Williams wrote

    I use http://www.thegoldbullion.co.uk

    Deliver to you the next working day – or if you order Friday they will deliver saturday for an extra charge if you can’t wait until Monday.

  39. 01/02/2013, Adey wrote

    Hello, can anybody help me please?
    I want to buy £2000 worth of shares in a gold mining company in Australia, but am not sure how to buy them. I don’t have an account anywhere and am a complete novice at this kind of thing. any help/advice would be greatly appreciated.

  40. 12/02/2013, hemmings wrote

    Everyone at my company buys gold and silver from my broker/dealer at precious metals exchange London.

    Cheap, decent guy and excellent service.

    0203 667 2672

  41. 12/02/2013, Changing Man wrote

    Seems that Mr. Putin is also reading Money Week? He is buying gold in a big way! See http://www.bloomberg.com/news/2013-02-10/putin-turns-black-gold-into-bullion-as-russia-out-buys-world.html

  42. 03/03/2013, Changing Man wrote

    With the price of gold falling, gold investors are seeing the downside of holding this asset which is not properly addressed. Even if you are just holding gold for “insurance” you don’t want the costs magnified by a falling prices. My strategy is now to hedge any loss in value by holding an ETF shorting the price of gold. If the gold price falls, I offset the losses in the value of my gold through my ETF increasing in value. When the gold price is on a sustained recovery I can always sell the ETF.

  43. 14/03/2013, Chris Wilkins wrote

    Our current belief is that Gold and Silver prices may bottom here for the shortterm. Buy physical gold and silver bullion, not ETFs.

    Sell Gold Silver NC

  44. 02/04/2013, Tigga wrote

    You can sell gold coins at any auction, they usually fetch a little more than you could buy them from say Bullion by Post but remember you have to pay commission on top, both to buy and sell gold.

  45. 03/04/2013, coins wrote

    Use a BNTA member if you want to buy collectors gold coins. A list can be obtained from the BNTA website

  46. 08/04/2013, GoldBell Mining wrote

    Or you could invest in a gold miner. http://www.goldbellmining.com

Commenting on this article closed

MoneyWeek magazine

Latest issue:

Magazine cover
Profit from the agriculture boom

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 3 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

The problem with the Bank of England

Fracking: Nine reasons not to get carried away

Five small-cap stocks worth a flutter

This Dutch company could help us tame floods

ScreenHunter_01 Mar. 25 09.51

Get the latest tips and investment opportunities from MoneyWeek magazine: Claim 3 FREE issues HERE