Shift in my personal strategy

[vand]

After accumulating 2k oz of phys silver over the last 3 years, I'm personally switching strategy and will continue the bulk of my "silver" accumulation via ETF. I will also start accumulating gold via ETF. 

"Traitor!" I hear you yell. Well, yes, maybe, but it cannot be denied that accumulation of ETF units has efficiency advantages, especially with silver where you are eliminating the 20% buy/sell spread.

Truth is that I never to want to take delivery of this. It will form a cornerstone of my all-weather portfolio going forward, and will be accumulated or sold according to strict rebalancing rules to steadily grow my wealth.

All paper currencies are doomed to fail, yes, but nobody can say when that ball will start to unravel, and you have to plan and build you wealth in the meantime. Even if the next crisis starts today, there is no guarantee that they will not somehow find a way to kick the can a bit further down the road to preserve the current system. It's not throwing the towel in on PMs (far from it), it's just being pragmatic. 

[Gildeon]

Just started looking at the paper market. Can you explain the advantages and disadvantages between ETFs and unallocated metals? Where does the Royal Mint Signature program fit in?

[vand]

18 minutes ago, Gildeon said:

Just started looking at the paper market. Can you explain the advantages and disadvantages between ETFs and unallocated metals? Where does the Royal Mint Signature program fit in?

There's lots of articles on the pros/cons of PM ETFs.. suggest Dr Google is a good place to start

> Royal Mint Signature program fit in

never even heard of this before today.. so I guess the answer is "nowhere". 

[vand]

Costs of the RM programme:

Buy Premium	Storage Rate*	Sell Premium
0.33%	0.5% + VAT	1.00%

CGT liable.

It's a no from me I'm afraid!

[jacobkenn]

I dont know nothing about etfs but what if any are the tax rates when you sell 

[vand]

Just now, jacobkenn said:

I dont know nothing about etfs but what if any are the tax rates when you sell 

One of the advantage of ETFs is you can hold them inside a regular ISA or SIPP with the standard tax advantages these wrappers provide

[sixgun]

i view it as reckless not to hold some physical.

Having said that.....

i have held SLV, PSLV and GLD ETF's - it is easy to buy and sell at the click of a mouse. There is a 1 cent spread in SLV.. There is no VAT.

The SLV and GLD tracks the price of gold and silver - i do not believe there is the correct amount of metal in the vaults. It is another scheme to keep the people away from actual precious metal. When the sh1t truly hits the fan there will be no gold and silver in those accounts and you will end up with worthless digits. When that will happen God only knows.

God willing on Tuesday Kinesis will launch the gold and silver digital currencies. We had a week's delay as they decided to switch to units of ounces for silver and then they found some glitch in the exchange setup so set it back another week but no word of delays now so it should be running on Tuesday/Wednesday. You will be able to buy actual physical and get title of ownership on the blockchain with a full KAU being 1g of gold and a KAG 1oz of silver. i will be able to see how this is this week - it will be fully live and running in 3 months time when if it does what it says you will be able to spend your gold and silver in the shops. If this works it will be better than ETF's in many respects. At some point there may be a pension product devised. There are no vaulting fees and you can redeem the Kinesis coins for physical. i will see how it unfolds. i see it as an addition to holding physical.

[Fastnick]

18 minutes ago, sixgun said:

If this works it will be better than ETF's in many respects. At some point there may be a pension product devised. There are no vaulting fees and you can redeem the Kinesis coins for physical. i will see how it unfolds. i see it as an addition to holding physical.

I'm liking the sound of this

[sixgun]

3 minutes ago, Fastnick said:

I'm liking the sound of this

i have 100g of gold in the Allocation Bullion Exchange vaults in Dubai - i will use this to mint 100 KAU. i will feed back on what happens.

[Fastnick]

It'll be interesting to hear about your experiences - thanks for keeping us in the loop on this.

[Abyss]

@vand you have do what you feel comfortably with and provided done own research then you should execute your strategy without fear/doubt. I personally not buying any more large amounts of physical Gold/Silver waiting for price corrections in PMs and more favourable GBP. I can see your point looking at the spread between buy/sell price in GLD/SLV only being 1 cent compare it to the spread physical PMs.

6 hours ago, vand said:

After accumulating 2k oz of phys silver over the last 3 years

Congrats a lot of physical Silver managed to accumulate over the last 3 years that should always give you sense of pride and accomplishment regardless of future strategy and the price of PMs moving forward it is a major accomplishment 👍.

[vand]

1 hour ago, Abyss said:

@vand you have do what you feel comfortably with and provided done own research then you should execute your strategy without fear/doubt. I personally not buying any more large amounts of physical Gold/Silver waiting for price corrections in PMs and more favourable GBP. I can see your point looking at the spread between buy/sell price in GLD/SLV only being 1 cent compare it to the spread physical PMs.

Congrats a lot of physical Silver managed to accumulate over the last 3 years that should always give you sense of pride and accomplishment regardless of future strategy and the price of PMs moving forward it is a major accomplishment 👍.

 

I figure stacking the equivalent of your own bodyweight in silver is a good point to take stock, and the truth is that while I may not own as much phys metal as some, I own more than 99.9% of the general population. Is there much advantage to holding 20k ounces above a fraction of that? I reckon I'll be as alright as anyone in the event of the next meltdown or zombie apocalypse.

I do plan to keep buying some phys platinum & continue collecting the 2oz Queens Beast series in silver, but just as I've focussed on two very specific things in the last few (paying off the house and building my stack) my focus is now shifting to diversifying my wealth base and investing in some other assets.

 

[AgCoyote]

You have plenty of physical. I see nothing wrong with what you're doing. Good luck with the ETFs.