Is it time for an emergency stash of cash?

Anwen · Post by **Anwen** » 30 Sep 2008, 10:41

What about silver, does anyone think there's much point having some of that? I doubt I can manage the outlay for more than one small gold coin (if that!), but could get two or three silver coins for similar money...

Andy_K · Post by **Andy_K** » 30 Sep 2008, 11:44

Trouble with silver is that unlike gold, you have to pay VAT on it if it's not second hand... and second hand silver is very scarce, so it's very difficult to invest in it unless you're willing to pay way over the odds

Anwen · Post by **Anwen** » 30 Sep 2008, 12:04

Andy_K wrote:Trouble with silver is that unlike gold, you have to pay VAT on it if it's not second hand... and second hand silver is very scarce, so it's very difficult to invest in it unless you're willing to pay way over the odds

Ah, I see... Also, is there any point in getting gold coinage that's not 24karat? *is lacking in any sort of a clue* I am inclined to think that even if it's not 100% pure unsullied gold, if cash does end up being badly devalued, any gold coin is likely to be of at least some use for getting stuff, as most people these days probably think of 9k gold as being really jolly good (judging by the success of 'diamonique' and products labelled as 'genuine faux gold' etc...) but am probably wrong.

Not that I'll end up buying any anyway, what with probably needing the money for mad luxuries like food etc.

Ludwig · Post by **Ludwig** » 30 Sep 2008, 12:34

I've just been wondering if I did the right thing in buying gold, reading older threads. After all, it has no intrinsic value, it's just a stable representation of the value of other things. It has value as long as people can put off buying things, but in a situation where no one knows where their next meal is coming from, it's clearly useless.

Anwen · Post by **Anwen** » 30 Sep 2008, 12:44

Possibly, but in a situation where things aren't quite that dire, but regular currency is wheelbarrow-fillng in uselessness, I would think that gold and silver coins are likely to become at least nominally valuable, as people do have an attatchment to 'real money' which would be likely to last at least a while. It's impossible to predict exactly how things will turn out.

Norm · Post by **Norm** » 30 Sep 2008, 16:05

I agree, my small stash of sovereigns may one day just buy me that crucial tank full of diesel or similar where my euros/pounds/kronor may be useless. I don't see it as an investment but another essential preparation, like storing food.

Post by **adam2** » 30 Sep 2008, 18:00

Anwen wrote: Ah, I see... Also, is there any point in getting gold coinage that's not 24karat? *is lacking in any sort of a clue* I am inclined to think that even if it's not 100% pure unsullied gold, if cash does end up being badly devalued, any gold coin is likely to be of at least some use for getting stuff, as most people these days probably think of 9k gold as being really jolly good (judging by the success of 'diamonique' and products labelled as 'genuine faux gold' etc...) but am probably wrong.

Not that I'll end up buying any anyway, what with probably needing the money for mad luxuries like food etc.

AFAIK gold coins are either almost pure gold (sovereigns, krugerands etc) or simply gold coloured and not really worth anything such as our pound coins.
Alloys containing a variable proportion of gold, sometimes quite a low % are very popular for jewelry, but in my view are attractive ornaments and not investments or a store of value.

A stash of blankets, warm clothing, shoes, canned food, batteries, candles, basic tools, and camping equipment is much more likely to save your life in hard times than a few gold coins.
IMHO gold should only be considered if you already have a stash of useful supplies, in which case a few hundred or even a few thousand pounds worth of gold might well be more use than that sum in banknotes or in a savings account.
The main advantage of gold is that governments cant print more of it !

Ludwig · Post by **Ludwig** » 30 Sep 2008, 18:15

Norm wrote:I agree, my small stash of sovereigns may one day just buy me that crucial tank full of diesel or similar where my euros/pounds/kronor may be useless. I don't see it as an investment but another essential preparation, like storing food.

I bought gold because there's so much preparation stuff I haven't bought yet and I didn't want to watch my savings going down the pan while I was still deciding how to spend them.

I've converted less than half my savings to gold. Probably still too much but then... there are probably no right or wrong decisions in these circumstances :\

Aurora · Post by **Aurora** » 30 Sep 2008, 19:13

Ludwig wrote:I've just been wondering if I did the right thing in buying gold, reading older threads. After all, it has no intrinsic value, it's just a stable representation of the value of other things. It has value as long as people can put off buying things, but in a situation where no one knows where their next meal is coming from, it's clearly useless.

To reiterate, it's no accident that historically, when times get tough and currencies collapse, wise investors have turned to gold.

It has always been a source of financial safety. No, it doesn't necessarily go up or down in value. But it never goes away.

Vortex · Post by **Vortex** » 30 Sep 2008, 19:20

... of course in the UK the sellers of gold insist on ID so they can keep Big Brother informed ...

"Open the door, Robinson. We know you've got 2 gold sovereigns and a Krugerrand in there!"

Andy_K · Post by **Andy_K** » 30 Sep 2008, 19:50

ID checks are only compulsory if you buy £10k worth or more...

Vortex · Post by **Vortex** » 30 Sep 2008, 20:13

Andy_K wrote:ID checks are only compulsory if you buy £10k worth or more...

The website seems to say that ID is ALWAYS required ... BUT that the info is only passed on to the spooks when a certain purchase limit is reached ... or if the info is demanded by the spooks from the vendor.

http://www.taxfreegold.co.uk/customsand ... ation.html

Andy_K · Post by **Andy_K** » 30 Sep 2008, 21:59

Ah, I bought mine from ATS Bullion. No ID check unless you buy 10k worth there, which is the legal requirement. I guess taxfreegold just do it for fun!

jcw · Post by **jcw** » 01 Oct 2008, 04:38

Anwen wrote:What about silver, does anyone think there's much point having some of that? I doubt I can manage the outlay for more than one small gold coin (if that!), but could get two or three silver coins for similar money...

You should consider British gold sovereigns. Each is close to one quarter an ounce of gold and easy to buy and sell. Also in the UK, like British Britannias, they are not subject to capital gains tax as they are classed as legal tender.

The VAT on silver is a real pest and the premiums (coin versus paper silver price) even worse.

If you still want to buy silver on 1st Jan 2009 try this good company:

coininvestdirect.com.

It's registered in London but I believe their main operation is in Germany (I have bought gold from them but not silver - due to my country location which is not the UK). From that date until their "UK VAT allowance" is used up you will be able to buy silver with VAT of 7% only. After the "UK VAT allowance" is used up it will be at the British rate. I suspect the allowance will be used up quickly perhaps within days.

You can buy from them at the British rate now if you want.

But like I said gold sovereigns are well worth considering.

By an EU law of 1st Jan 2000 all gold bullion is free of VAT (so basic bullion coins and bars are certainly free of VAT but not necessarily expensive numismatic coins).