Is Gold a good investment?

[MoNkFiSh]

I would love to be able to dabble in stocks and shares but I think Im too thick to do it I havent got a clue on the lingo and it all seems far too complicated, but while Ive been lurking arond a few sites I have seen talk of Gold giving decent(ish) returns - Ive been watching the prices on Hatton Garden metals and within 2 weeks a 250g bar went from being worth £7275.93 to £7567.57 as of today - this doenst seem too bad (compared to the interest Id get in a bank - plus theres the bonus Id actually have an actual gold bar to show off with

Does anyone have any advice on buying or selling gold or any decent websites for info etc..
Im maybe looking at investing around 10K but I dont want it tied up in some obscure bank account where I cant get to it without giving notice etc..

Thanks in advance!

[wadgey]

I don't know too much about gold other than it's a pretty safe bet over time and also that it performs better when the US$ is down.

I bought some Krugerrands last year for about £725 each. Worth about £850 or so now but the idea is to hang onto them for my children.

goldprice.org is a site I check on a daily basis. The price (per ounce) has topped $1400 for the second time and looks like it will stay $1400+.

[Raptor]

I don't know too much about gold other than it's a pretty safe bet over time and also that it performs better when the US$ is down.

I bought some Krugerrands last year for about £725 each. Worth about £850 or so now but the idea is to hang onto them for my children.

goldprice.org is a site I check on a daily basis. The price (per ounce) has topped $1400 for the second time and looks like it will stay $1400+.

Where did you buy them from.

At todays exchange rate they are about 960 quid each

[cronus71]

I wouldn't invest in precious metals only. I would have a portfolio of which a small part would be invested in for example gold, but also funds, bonds and stocks.

Morningstar is a pretty good site for ETF's, well worth to register and then read the expert views, who manages any given fund and how successful they have been.

One way try and be on top of things, is to follow what's happening in the industries where gold, silver and platinum are used. And if you sense there will be an increase in demand then it may be a way of making small profits.

[wadgey]

Where did you buy them from.

At todays exchange rate they are about 960 quid each

Yeah sorry, was thinking of an old figure.

I bought them off a private seller. He had one on eBay that I bought, then we negotiated to buy a handful more.

I paid about £20-5 on top of the gold value which is not too bad.

[wadgey]

They've stopped minting Krugerrannds now. As people melt them down and the number in circulation decreases, there's a fair chance that the premium on top of the gold value will increase.

[CzarJunkie]

10 years ago I woud have said yes, but as Cronus suggests, don't put all your money into one commodity, especially gold as the price is relatively high.

Choosing something like a unit trust or OEIC will allow you to invest in gold if you like but the same fund will also probably invest in other metals including silver, copper etc. and possibly other mined minerals and metals. This diversity will spread your risk and should the price of gold hit a downward trend you won't be as exposed.

Personally I'd steer clear of precious metals altogether. If you want to take a risk and have a solid return on investment I'd look at some OEIC's that are rooted in China, the Far East and emerging markets such as Brazil. There's a relatively medium to high risk but funds in these areas are currently enjoying returns of anything up to 20% since the beginning of the year in my experience. Given that the average bond is offering no more than 2-3%, this is quite a return on your investment.

You can find some good info on unit trusts etc. here: http://www.trustnet.com/