Best Way to Invest in Gold/Silver

paul11 on 16/08/2015 - 12:44

Hi Guys, I am looking to invest $20K in Gold/Silver. What is the best (easiest and cheapest) way to own some Gold/Silver. The horizon is 12-18 months. I have heard of ETFs, but not sure where to start ? Which ETF has lowest fee etc … I have also thought of buying some Gold/Silver from Perth mint and use their depository service (they charge about 1% for this) to store it with them. I don't want to take physical possession of Gold/Silver.

Currently my bank (uBank) pay me about 3.69%. I am quite sure I can make more than that by investing in Gold/Silver.

Thanks

Financial

Comments

  • chill on 16/08/2015 - 14:01
    +3

    you are aware gold has been in a downtrend since 2011? Are you confident 12-18 months is long enough?

    http://www.kitco.com/charts/popup/au3650nyb.html

    Not rubbishing you idea, just putting it out there.

    • paul11 on 16/08/2015 - 14:13
      +1

      I know gold is in downtrend. I am thinking of spending 75% in silver and 25% in gold.

    • gooddealmate on 16/08/2015 - 15:03

      I'd agree, everything i've read suggests gold is not a good investment atm.

  • Baysew on 16/08/2015 - 14:28

    ETF can be purchased via a stockbroker (Just like a share)

    There used to be a better list of ETF on the ASX web site but this is a quick start.
    (http://www.asx.com.au/products/etf/managed-funds-etp-product…)

    Lots of charts etc to play with as well.

  • mskeggs on 16/08/2015 - 17:43

    There is a user on here called BullionBaron who is an expert on this. Perhaps msg them?
    I don't hold gold, but it is a valid store of wealth. The example I like to clearly illustrate this is Nouriel Roubini, whose family had to flee Lebanon when the civil war broke out. Literally any paper assets were useless in such a situation.
    In my opinion, the critical consideration is to consider why you are holding it.
    Some speculate on its value due to various macro economic issues - QE, currency devaluation etc.
    Others hold it because they fear a break down in financial markets, and feel gold will hold value even after such a disaster.
    Others because of technical trading indicators.
    If you are worried about a disaster, you really have no alternative to holding the physical metal under your control. That means securely storing it at home.
    If you are a technical trader, or macro economic driven, you can buy an ETF or futures. But be aware there are rumours of funny business in the gold derivatives market where there are many more derivatives in circulation than base metal. In a market crash or similar, you could be exposed to counter party risks you were hoping to avoid by holding gold in the first place.
    Finally, you might consider buying shares in a gold miner. Their shares follow the price of gold, and most are seeing their prices smashed in recent months. A change in sentiment for gold will show up most swiftly in their share prices.

    • scotty on 16/08/2015 - 19:08
      +1

      There is a user on here called BullionBaron who is an expert on this. Perhaps msg them?

      Who runs Bullion Money. Check out some of the deals he posted.

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