I don’t suggest you put all your money into stacking silver and gold, but diversity is key to any portfolio. Gold has forever held its value ever since the days of when the Egyptians ruled the lands, and in times of trouble Gold is seen as a safe haven for many.
I like to use this example to explain to people why keeping gold is a good investment. Lets say you sold your a house in the 1980’s with the average house price in the UK around £25,000 at the time.
Instead of buying another house, you decide to keep your £25,000 in the bank until 2017. You wouldn’t be able to buy an average property in the UK with your £25,000. Even taken into account interest rates, you would have not occurred anything to the amount of an average house price of about £120,000 in todays property market (in the North of England).
However, if you were to have invested your £25,000 in gold instead of placing it in the bank the story would be different. With gold prices around £185 per ounce, you could have bought around 135 ounces of gold at the time. In todays market that would be worth £130,000 (with gold being around £1,000 per ounce).
Obviously house prices vary, but you get the picture.
The thing is gold prices change by the second, and it can be volatile just like any other market – so you do need to be careful, and not invest anything you’re not prepared to lose.
Stacking gold and silver, is also a good option instead of putting money into the bank for children. As it’s likely to hold it’s value over long periods of time.
Some people may argue that holding stocks is a better option, and they maybe right. But, diversity is key and don’t put all your eggs in one basket. Also, there is nothing more satisfying that holding your own gold and seeing your stack increasing over time.
There is multiple ways to buy gold, but I prefer buying it in the physical sense and storing it myself. You can pay a fee to hold it in a vault if you wish too.
If you’re from the UK then holding Britannia’s or Sovereigns are probably one of the best ways to buy gold. This is because its exempt from capital gains tax, as each coin is legal tender in the UK!
So how do you go about buying gold?, I hear you ask… well, it’s actually easier than you think. There are tons of websites geared up to sell gold just over spot price.
How much should you buy? well thats personal preference… but you can invest as little as around £40 in 1 gram bars – this soon adds up over the year. Obviously it goes without saying, the more grams you buy the cheaper it works out, and the closest to spot price you get.
Some of the 1 ounce silver coins are relatively cheap, even less than £20, and are great for gifts. Some limited edition coins and bars even have Disney or Star Wars pictures on them – which make a great gift for kids, and encouraging them to save from an early age.
Bars work out cheaper than coins, but obviously as mentioned coins are exempt from capital gains tax and also coins have the collectability factor, with the potential of increasing more than just gold price over time.
What about selling your bullion? you can sell your gold anywhere such as eBay (where you get the best price, but keep your wits about you). You can also sell it back to Gold.co.uk. In fact, the list of places you can sell your gold is endless.
If you want to be impressed by some some large gold stacks, then check this out on YouTube: