My experiences with Gold/Silver investment


(Invest in silver and gold bullion here: BullionVault – Online gold and (VAT free) silver trading – Free gram of gold/ounce of silver when registering!)

A few years ago I’d never even considered silver or gold as an investment, to me it was jewellery, nothing more. But then a friend mentioned he’d started investing in it. At the time I’d just started looking at investing in shares so thought what’s the harm in diversifying my portfolio. As it turned out, it’s one of the greatest invetments I ever made.

Please note, I’m not a professional accountant, investor or speculator, I’m just you’re average guy looking to save money as effectively as possible. I accept no responsibility for any financial loss – we all know investments can go down as well as up.

I started investing in silver and gold bullion around 2 years ago. I use a drip-feed approach, much like I do with shares, as opposed to buying in bulk so it stabilises any flutuations in price (one month it’s low, the next month it’s high – it balances out), so each month I buy a certain amount.

There are two real options for buying bullion, physical and virtual. Physical means you buy actual bullion bars and get them delivered to you, virtual means you buy the bars but someone else looks after them. Both have their advantages and disadvantages, with physical you get to hold your pretty new bars but have to make sure they’re safe. With virtual, you know they’re safely stored in a vault somewhere but you have to trust that is the case.

‘Give me the numbers!’ I hear you shouting. Ok, in 2 years, my silver investment has gained 99.78% (yes, nearly doubled in value!) and my gold investment has gained 32.47%. Not too shabby I feel!

I personally prefer silver, and my understanding is that it’s used a lot more in industry with supplies predicted to run out imminently, so believe it has more potential than gold. In the UK however, silver bullion still attracts VAT so needs to gain more to provide a profit. Gold bullion is a safe option, but used less in industry, so my feeling is that its gains will be more reserved. Gold bullion does not attract VAT in the UK, however, so can generate a more immediate profit.

I personally have double the amount of silver than gold and will be keeping it that way for the foreseeable future. ‘So where do I start?’ you ask. I use the following, virtual, company who also provide a free gram of gold/ounce of silver on registration (approx £25 worth each), all you pay is a small holding fee each month for them to keep your bullion secure:

BullionVault – Online gold and (VAT free) silver trading – Free gram of gold/ounce of silver when registering!

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