Buying Gold Sovereigns?

[124fan]

Hi everyone,

I've asked this on other forums, and thought that it might get some interesting answers here also..

I have some investments that I've drip fed over the years, but I let my cash reserves get low recently and I had to go to three ATM's before i got one that had any money in it, problem is living in a country area that meant driving to three villages and covering 17 - 18 miles each way! This made me think about the value of cash! (I'm not saying I'd be running around trying to spend sovereigns) I've had a notion of buying gold for a long time and I'm thinking that it could be a good thing to have some money tied up in? What do you all think of it as an investment that is outside the institutions could be added to at 3 -4 coins at a time over the next 20 years and then could be sold off as needed to give a little boost to income in my retirement?

My thinking as been way off in the past so it may be again, but I'd value your opinions, thanks in advance.

Cheers

 

[Dieselman]

I wouldn't buy gold sovereigns as an investment as old Jaguars are notorious rot boxes and any car in gold is difficult to sell on..

 

[wemorgan]

I would personally recommend Gilts and Bonds as more traditional in-retirement funds. Gold is a more volatile asset, popular in uncertain times like we have now, but quickly loses favour in a bull market.

There's a lot of useful information here: http://www.h-l.co.uk/

 

[crammy69]

The problem with Gold in general is that there (other than rare periods of backwardation) is no positive cost of carry ( I.e you dont earn anything when you hold it - unlike savings you get interest on). Of course the upside over the last few years has been a considerable value increase. It is still considered in some parts of the world a reliable store of wealth, but I wouldnt personally recommend it, not in the form of sovereigns anyway. For one thing the margins for buying and then selling ( especially if you have few outlets to choose from) will likley negate a good percentage of any possible increase. Also there is the insurance & security aspects of holding them to consider.

However as a way of storing money away from the evil gaze of Herr Brown and his band of Henchmen at HM Treasury....

How about looking at other assets such as Art,Antique jewellry, watches etc?? or even the old favorite premium bonds (tax free!)

Cheers
Simon

 

[Mudster]

Right now gold is also at a historically high level.

Right now, I'd say a good investment would be in a company that auctions repossessed property.