Thoughts on Premium Bonds
- Thread starter William_Montgomery
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I'm getting 33% return on my investment if I cashed in now. That's not going to happen, it will sit here until my demise and my cousins get the goodies.
I saw what the government were willing to do with my dementia Father, take all his hard earned savings and house down to 20 odd grand, not going to happen to me.
I more meant is Gold actually going UP in price or is it that the fiat money becoming more 'worth less' and actually you have just retained it buying power by moving to Gold.
You cousins are fortunate to have you think and look out for them.
I have a silver charm bracelet. My Aunt bought me the bracelet chain when I was seven, and my Great Aunt bought me my first charm.
I've collected them ever since, preferably moving, opening ones, and now the bracelet is too heavy to wear. Son 1 said I could cheerfully brain someone with it
In the last five years though, the price of my silver charms has doubled.
Little things, but indicative of the price rise in silver. A charm that used to cost me maybe £14 is now nearly thirty.
Yet we keep mining silver, and gold.
Makes you wonder. We can't take it with us, iimmc ??
You know what keeps it's value ?
Land.
I know someone who is buying up wee patches of land all over the county. He now owns eighty wee plots.
Says he hasn't lost out buying and selling one yet. Old substations, small redundant factory sites, odd field corners, wee car parks. He's happily buying them all.
I think his taxes and his rates must warrant an accountant all to himself, but I see his point about the value.
M
Land is a good investment if one has the spare capital lying around- but without it you'd have to service a mortgage and interest debt on potentially something you can't find a rentee for. Difficult to imagine how one can make direct money out of some of your friends purchases unless planning for improvement or redevelopment is obtained and all that takes more time and more capital.
Direct Gold Mining is an interesting thing - there is a price where mining soley for Gold only makes sense - anything under a certain level and its just not worth the squeeze. Don't think we are there currently and haven't been for some time but if Gold dips too much I can imagine mining companies not digging and ironically pushing the price up via supply and demand.
There is a strategy where one invests in shares in Gold mining companies - riding the train for profits at far lower premiums.
@Tengu
If they're real silver, well made and they do something, then that's a bargain
@TeeDee
That happens here already. They only mine when the gold price is worth the extraction.
That said, the mine's in trouble.....
www.bbc.co.uk
Nearby we have Wanlockhead and Tyndrum where gold can be panned.
If they're real silver, well made and they do something, then that's a bargain
@TeeDee
That happens here already. They only mine when the gold price is worth the extraction.
That said, the mine's in trouble.....
Scotland's only gold mine on brink of collapse, says main shareholder
A major shareholder for Scotgold Resources resigns, saying the firm is heading towards administration.
www.bbc.co.uk
Nearby we have Wanlockhead and Tyndrum where gold can be panned.
The inflation rate of precious metals is restricted, it has to be mined and processed etc., whilst currency money can and is easily inflated. This is a large part of why things, not just precious metals, increase in price, because currency money is increasing at a faster rate than productivity. If it was the other way around, as has been in the past, and inflation rate of currency money was slower than that of productivity, we would see prices of items decreasing. Obviously there are other factors like consumer demand but we are being shafted by the expansion of currency money.
I'm invested in a very interesting Gold mining company in Mexico, who are taking sulphur heap leaching process, commonly used in copper extraction, to Gold extraction. They own the rights to one of the world's largest undeveloped Gold-Silver deposits.
They're currently going through testing to optimise the process but current recovery rates are good. Mexico as a mining jurisdiction is currently a bit risky, though.
Land is a good one because supply, barring the cutting down of rainforests etc., is fixed. A few years ago we bought about 2 acres of land. We're currently having some drawings made up and hoping to put in for planning permission this year to move our business (small outside garden centre) on to which would save us all the rent We're paying where we currently are.
Bit of both, and depending on when you bought Gold. Here is a chart of Gold, adjusted for inflation (using CPI data). If you had bought and held Gold at any time other than the extreme highs of 1980, today you would at least be keeping up with inflation, and most likely, beating inflation.
The reason why we still haven't yet broken above the 1980 high in Gold prices, inflation adjusted, is because the rate of change through the 70's was massive, Gold increase in price by around 2,400% compared to the current increase of around 1,100% since '99.
Gold has actually beaten the returns of other investments, including the indices since 2000, and house prices. Measured in Gold (what I call real money), house prices today are valued the same as they were back in the 1950's.
A bit of both I think. I do know the size of coins I purchase are fractional now due to cost.
There’s a difference in silver quality. Sterling or nickel. Plus they’d be pre owned and treated as scrap. So even at £5 they will make a profit. At that weight most won’t need to be hallmarked, so you need to know what you are buying. Some charms are hollow and infilled with lead. Some are a pewter, nickel silver mix and not 92.5%
