Trading Gold - Not Worth It

[Waldo]

If I buy some gold, then immediately sell it (to same broker), I believe I would loose around 10% of my investment. Is that correct?

 

If so, it seems like an insanely high spread, and quite possibly, it would only make sense to buy and hold gold as a very long term investment, like decades.

 

Is that a fair assessment?

Edited August 11, 2021 by Waldo

[Guest sibon]

You can invest in gold in different ways. There are specialist funds you can buy that invest in gold and the industry that surrounds it. 
 

You can buy lumps of gold from a retailer, for example as sovereigns.

 

Or, if you are sure of what you are doing, you could buy gold objects in auction.

 

None of them will give you an immediate return, but holding a bit of gold long term is a pretty good idea.

[bassett one]

i have been told the next big one and you can make cash is silver,as it will be in short supply,when the use it for phones or somthing like that,but either way its better than intrest rates,some folk have made good cash out of classic cars as well

[andyofborg]

2 hours ago, Waldo said:

If I buy some gold, then immediately sell it (to same broker), I believe I would loose around 10% of my investment. Is that correct?

 

If so, it seems like an insanely high spread, and quite possibly, it would only make sense to buy and hold gold as a very long term investment, like decades.

 

Is that a fair assessment?

all investments should be for the medium/long term. you only make money in the short term by having inside information or being  lucky.

 

anyone buying and selling any sort of asset will try and buy for less than than they sell so it's not surprising your scenario results in a loss.

[Waldo]

3 hours ago, sibon said:

You can invest in gold in different ways. There are specialist funds you can buy that invest in gold and the industry that surrounds it. 
 

You can buy lumps of gold from a retailer, for example as sovereigns.

 

Or, if you are sure of what you are doing, you could buy gold objects in auction.

 

None of them will give you an immediate return, but holding a bit of gold long term is a pretty good idea.

Ah yeah, specialist funds sounds like a far more sensible idea; I hadn't considered that, thanks.

[El Cid]

16 hours ago, bassett one said:

i have been told the next big one and you can make cash is silver,as it will be in short supply,when the use it for phones or somthing like that,but either way its better than intrest rates,some folk have made good cash out of classic cars as well

Although the stock market is always risky, it great for those that bought shares in Capita a few days ago, a international business process outsourcing and professional services company headquartered in London that does a lot of work for the Government.

Their shares are up 40% in the last 5 days, I guess Johnson will be giving them some more lucrative contracts.

[Annie Bynnol]

7 hours ago, El Cid said:

Although the stock market is always risky, it great for those that bought shares in Capita a few days ago, a international business process outsourcing and professional services company headquartered in London that does a lot of work for the Government.

Their shares are up 40% in the last 5 days, I guess Johnson will be giving them some more lucrative contracts.

Risky!

They are trading below their March value of £0.50 they used to be £8.00 a share.

You would have lost £9 for every £10 invested five years ago.

Yes the expectation is that they are at the bottom. 

UK government spending levels are so uncertain that Capita shares are not for the amateur. 

[The Joker]

8 hours ago, El Cid said:

Although the stock market is always risky, it great for those that bought shares in Capita a few days ago, a international business process outsourcing and professional services company headquartered in London that does a lot of work for the Government.

Their shares are up 40% in the last 5 days, I guess Johnson will be giving them some more lucrative contracts.

Yes, we're all familiar with the antics of C(r)apita.

 

I seem to recall they came to prominence under Tony Blair's government; they bribed donated a six-figure sum and got millions in government contracts in return.

 

Now that's  value for money ; David Cameron and Greenhill Greenshill Greensill should take note.

 

[ab6262]

15 hours ago, Annie Bynnol said:

Risky!

They are trading below their March value of £0.50 they used to be £8.00 a share.

You would have lost £9 for every £10 invested five years ago.

Yes the expectation is that they are at the bottom. 

UK government spending levels are so uncertain that Capita shares are not for the amateur. 

these shares are ridiculously cheap right now, as are airline, hospitality and automotive, if you can buy then buy, i bought shares in all of them at the bottom but they are still cheap now, historically these will boom again.

[ab6262]

On 11/08/2021 at 20:25, Waldo said:

Ah yeah, specialist funds sounds like a far more sensible idea; I hadn't considered that, thanks.

unless you have plenty of cash in excess of 150k the gains short term are not worth it, much better for short term gain is property as long as you can buy for the right price, unfortunately now even that is difficult, no such thing as easy money.