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National newspaper article on gold and silver

ended 09. March 2023

A money journalist at the Daily Telegraph is writing a piece today on a rise in people buying gold and silver commemorative coins. She is keen to get thoughts from IFAs and investing/money experts on gold and silver in general, e.g. 

  • What are the more conventional ways to invest in silver and gold other than (Harry Potter-themed) commemorative coins?
  • Are there any gold and/or silver-focused funds, investment trusts or ETFs that you think are worth a look?
  • What are the potential benefits and risks of investing in gold and silver (on the whole, and at the current time)?
  • Do you recommend clients allocate a small part of their portfolio to gold and silver, or does it rarely crop up as most people prefer equities/bonds instead?

Clearly all the above depends on client risk. Any other thoughts, jot them down. Deadline is tight - 13:00 - so go go go. 

4 responses from the Newspage community

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Editor
Scott Gallacher
Director at Rowley Turton
Although precious metals are often seen as safe havens, they can be riskier than other investments like stocks and shares. Also, they are non-productive assets without any inherent growth potential or income generation, only held in the hope of their value remaining steady or rising in the future. Adding in the collectable element only increases the risk. Furthermore, collectable coins can be subject to changing trends. Can you imagine if they had produced Jimmy Saville-themed commemorative coins back in the day? Who would want to own them now?
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Philip Dragoumis
Director and Owner at Thera Wealth Management
We do not recommend that our clients hold gold, through whatever vehicle, for several reasons. The market price is not driven by fundamentals but purely by investor sentiment, and this makes long-term returns impossible to predict. Most importantly of all, though, why would you want to hold gold now when the opportunity cost is in excess of 4% and inflation is coming down (even though gold has never really been an inflation hedge)? The only reason is if you believe that we are heading for a doomsday scenario where paper money has no value. In this case, guns, tinned food and farmland would probably be just as valuable.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
The outlook for the economy is uncertain, and when people feel nervous some of them will turn to gold. This valuable commodity has been a safe haven investment for centuries and is still the thing to back when the going gets tough. Gold values have come down about 10% from their peak as other markets settled down, but with further volatility in financial markets expected, gold should see an increase yet again. If holding physical gold isn't for you, you can invest in a gold miner, such as Sandstorm or for more diversification you could pick a fund like WS Charteris Gold & Precious metals. This invests in a portfolio of companies involved in the mining, refining and production of gold and other precious metals. Overall, commodities should make up a maximum of 15% of your portfolio so you shouldn't be putting all your money on gold.
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Charles Archer
Financial Analyst at Investing Reviews
There are a few ways to invest in gold outside of physical coins. For example, the Invesco Physical Gold ETC seeks to replicate the performance of the London Gold Market Fixing Ltd PM Fix Price/USD, with the fund backed one-to-one with gold bullion held by JP Morgan Chase in London bank vaults. This allows investors to benefit from the price action of spot gold without going through the hassle of actually owning and insuring the precious metal. Alternatively, investors who consider that gold will continue to rise in value may want to buy shares in individual gold miners or ETFs that contain a basket of the most popular gold stocks. Titans like Barrick Gold and Newmont are popular, but more risk-averse investors may wish to diversify into a number of ETFs.