Gold/Silver/Oil Futures Advice Sought

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thepinkpanda's picture
thepinkpanda
Status: Member (Offline)
Joined: May 29 2010
Posts: 1
Gold/Silver/Oil Futures Advice Sought

Dear All,

I have recently liquidated my assets into Stirling and I would like some investment advice...

My thoughts are to split the pile thus:

  1. £8k Gold Sovereigns
  2. £8k in Silver coinage
  3. £1k in Oil Futures
  4. £1k in land based equity shares, which will benefit post peak-oil

Questions:

Are Gold Sovereigns the right sort of coinage for gold in the UK for me to buy long term?
Who should I buy them from - please recommend actual UK bullion dealers please?

What Silver coinage should I buy, and again - who from?

Oil Futures, I know little about, but I feel like them, that oil will be way above $130 as demand excedes supply as the economy does expand in say 18 months time. Thoughts from anybody please.

Advice on thought #4 please?

Many thanks,

the pink panda

piquod12's picture
piquod12
Status: Bronze Member (Offline)
Joined: Apr 13 2010
Posts: 99
Re: Gold/Silver/Oil Futures Advice Sought

Hi PP

1. Chard are as good as any. Expect to pay 10% over spot for sovs or brittanias. Both are tax-exempt in the UK.

2. Ebay for job lots of silver coins. Patience should allow you to buy at or even below spot. Usual caveat emptor applies although unlimited paypal protection and checking feedback helps.

3. Beware of contango in the oil market if buying futures. Make sure you understand how this works before even considering investing. Long-dated call options are an alternative but last time I looked they were pretty expensive and your timing has to be good.

4. For £1000 you might be best using the money to secure and manage an allotment or veggie plot. For that much you could also throw in a decent greenhouse as well.

Best,

 

dgilmart's picture
dgilmart
Status: Bronze Member (Offline)
Joined: Aug 3 2009
Posts: 40
Re: Gold/Silver/Oil Futures Advice Sought

be very very cautious with oil futures - if you do not know what you are doing, they will wipe you out so i recommend staying away. Sorry if you do and this is old knowledge, but you do have  enormous downside on the futures and huge leverage. Yes the uptrend in oil is way up, but if (when?) we hit double dip recession or china overheats or anything that creates a recession, oil price will drop huge for a time - look at the 2008/2009 chart and even recent action. with over 10x leverage, be ready to have a stop loss to get out or have lots of cash to cover the hit.

So, though trend is up, unless you can weather big drops, stay away from the futures - as the old saying goes, "market can remain irrational longer than you can stay solvent".

Good plan on splitting between gold and silver - sorry i cant help on where, as all my knowledge of where to buy is in the USA... and donig what you are doing and focusing on the physical metal is indeed the way to go. especially on silver.

Morpheus's picture
Morpheus
Status: Diamond Member (Offline)
Joined: Dec 27 2008
Posts: 1200
Re: Gold/Silver/Oil Futures Advice Sought

When I post here I only comment on my thoughts. I am not qualified to give investment advice. Even if I were I remember some wise words given to me by a friend. 

When it comes to investment advice, people will never thank you for good advice, but they'll sure as hell despise you for the bad advice

Words to live by. 

eternal sunshine's picture
eternal sunshine
Status: Bronze Member (Offline)
Joined: Sep 24 2008
Posts: 50
Re: Gold/Silver/Oil Futures Advice Sought

My thoughts

  1. £8k Gold Sovereigns
  2. £8k in Silver coinage
  3. £1k in Oil Futures
  4. £1k in land based equity shares, which will benefit post peak-oil

1 - I like sovereigns because they are treated as legal tender and are not subject to capital gains tax. Also they are a more convenient weight than an oz. I find 'chards' too expensive and use coininvestdirect.com instead

2 - I have allocated silver via bullionvault for a number of reasons

a) I wanted to keep my silver holding more liquid in case I needed cash in a hurry

b) You don't pay VAT

c) silver physical is more difficult to store in terms of volume

3 - I think futures are too risky unless this is money that you can afford to lose and you know what you are doing

4 - I don't know much about land equity shares, but if you are talkin about £1000 why not just stick to PM's for simplicity, and reduced commision charges etc

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