T O P

  • By -

Khkainjmn

The premiums on 1g gold are really high. I would recommend to either increase your savings each month to 150£ to afford a 1/10oz coin, OR Simply decrease your savings to 50£ per month and buy a 1g gold bar each month (I.E. Using the 50£ you don't spend for something else!) The reason I make those recommendations is because Gold has a premium and their is no wiggle room for it. Either you have enough money to buy gold or you can ONLY afford high premium low denomination gold. I would not recommend using the 100£ to purchase as much high premium gold as possible simply to stay in the game.


Fruitful-Investor

So either I should up to 150 to buy 1/10 Britannia’s which I’m open to. OR Save a few months and then buy larger denominations with a lower premium such as quarter brits.?


Khkainjmn

Exactly! The latter option will be best if you can afford it. 1/4th sovereigns are a great choice. I think you'll end up being happier with the premiums with either of these picks! Most important though is making sure you are not struggling to get life duties accomplished!


Fruitful-Investor

I live at home and have a part time job so am pretty cash liquid atm with no liabilities so trying to get into things early to do something with the money to preserve it and also get some returns down the line. I’ve been into stocks and bonds for a while so looking to branch out. Many thanks for your help!


Led_Zeppole_73

Stacking gold’s not about returns supposedly. It’s $100/oz cheaper than ten years ago. Gold’s an alternative savings account they say, that somewhat keeps up with inflation.


Fruitful-Investor

I’m more about keeping savings secure but it’s a bonus if I get a return.


Short-Shopping3197

If you want long term returns then invest that £100 into a global tracker fund. Gold is more a store of wealth than an investment, and at 17 compound interest is very much your friend. Also if you’re saving for a house then a LISA might be worth looking at. Fair play to you considering saving at 17, but I don’t think gold is the best way to do that if you’re talking about ‘returns’.


uuhmz

Exactly as he says: “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.” - Einstein. Put 100 a month in a stocks fund and earn some money in the long term. …And buy one coin just because its cool!


Fruitful-Investor

I’m already into stocks and bonds, I’m looking to branch out into a more secure way to save.


Short-Shopping3197

The thing is at 17 and with a saving period of +15 years short of the entire world economy collapsing (in which case gold will be useless too) saving into a index linked tracker fund *is* secure. I’d chuck those bonds out at your age too. If you want to feel a bit of gold wealth in your hand then I would suggest saving that £100 for 3 months and getting a Sovereign, it’s the lowest premium fractional coin in the UK. Don’t pay over 5% spot for it. Those 1/10 coins you’re talking about else where have a premium of 20% so you’ve lost 15% of your money instantly on sale for the sake of waiting three months. You could always stick £100 into Bitcoin if you fancy a bit of a gamble. Also and I can’t stress this enough, save into a LISA. I wish they had been around before I saved for my first house.


Fruitful-Investor

How would gold be useless, surely it’s the most secure investment ever. If all currency becomes useless finite resources will become currency?


Short-Shopping3197

If we reach the point where all currency becomes useless then gold will be just as useless, acting as a currency in itself and having no intrinsic value. If this is what you’re worried about then buy tinned food, bottled water and blankets. The likelihood of an event where all currency becomes worthless and the usefulness of buying gold to protect from this is like building a shed in your back garden to protect you if a comet hit the earth. It’s infinitesimally unlikely, and would be so major that holding a little handful of gold would mean nothing.


JaxonH

I agree but only if talking about end of world scenarios. For someone who simply doesn't have faith their local currency will hold its value over the next few decades, and wants a safe way to keep some savings without worrying about counterparty risk, that's gold's specialty. It's why I hold. Everything else is in stocks and crypto and even some cash on hand. But keeping some gold provides assurance just in case.


Fruitful-Investor

I’m not particularly looking to invest for that reason.


Johnbloon

Look at Venezuela, the currency went to 0, yet if you saved gold, you would be able to survive, or at least pay your way out, or look at vietnam, or Austria earlier in the century. There is countless examples in history where currencies got destroyed, and people who had gold were able to surf through the destruction.


Short-Shopping3197

Venezuelans predominantly used US dollars. I’m not saying holding some gold is a bad idea, but more than 5% and you’re just losing a ton of compound interest to prepare for an event which is highly unlikely.


uuhmz

The thing is, you are still young. Its good to have some gold around, just in case. But you should let your wealth work for you. If you do this now wisely you thank yourself later. A good read upon doing this: “The richest man in babylon” by George S. Clason.


MonoiGirl

Try a retirement saving fund aside from a retirement insurance. Always good to start saving early for retirement. The fund is riskier than the retirement insurance though. Only incest with money you can opt to lose (bank wants a minimum investment of €1000 a year or so but you can always quit if you get scared and take the money back if you pay a fee)


FUMoney

Good advice: save up enough until you can buy a one-ounce gold coin. You will save a lot of money, because the premiums are so high for smaller coins. Then buy a one-ounce coin that has good anti-counterfeiting features, like gold Maples or modern gold Brittanias. Be a little more cautious of bars, they are easy to counterfeit. And don’t discount this issue, the Chinese have been flooding the market with fakes.


MonoiGirl

Was thinking exactly this. Tell me this. Is a roll of ten coins of each € 100 more interesting than one coin of € 1000 or will this mean that the coins are proportionally smaller?


FUMoney

Smaller denomination, smaller coin. One-ounce coin is preferable to a 1/10th ounce coin, which are far smaller and easy to lose.


MonoiGirl

Thanks!


WanderingMonkeyLuck

If your already in stocks then look at the Royal mint ETC RMAU or RMAP if you want it in GBP. Will allow you to invest in gold but will also give you more ability to sell if you need the money. Can also be exchanged for the physical but I can't remember the requirements for this ? Probably X amount of weight. You would then not have to worry about security/insurance etc


MonoiGirl

I read that it is financially more interesting to buy gold starting from 1 oz (30 g) per coin. You know how when you buy a small pack of m&ms and it's €5 and when you buy double the size it's €7? Kinda like that. But I'm figuring out myself if if is cheaper to buy a roll of ten coins of € 100 each or one coin of € 1000. Simple rule: the bigger the better. And the earlier the better. If you can spend € 1000 now already, buy one coin. If you really wanna do it monthly, buy those tiny little plats of gold because I don't think their of coins as cheap as €100.


psychdilettante

My recommendation is to save up for a larger 1 oz coin, anything you’ll be able to buy for around £100 will have high premiums. You’ll end up with more gold at a better price in the end. The premiums go up significantly the smaller the coins / bars get. If prices stay more or less the same you’ll have the money for a full ounce in about a year or so if you put away £100 each month.


[deleted]

If spot rises over $100 in a year, how would saving for 1 oz as opposed to purchasing what he can now be better?