Q. I was told that I should buy gold now and not put all my money in the stock market, property and cash. What is your view ? And what other alternatives would you suggest to create a better return than the paltry amount of interest I am earning in my deposit account (0.25% gross before DIRT tax !) Thanks Gerry – Killarney Co Kerry
A. Yes Gerry they say 10% of your portfolio should be in a precious metal not just gold – platinum, silver, rhodium etc. It is safe and in these uncertain times, extremely barterable and negotiable. Countries, currencies and economies fail so I do believe in diversification.. not putting all your eggs in the one basket etc and your deposit interest rate ( net 0.1675% after 33% DIRT Tax ) is not exactly mouth-watering ! Art, rock ‘n roll memorabilia, philately ( stamps ) numismatics ( coin collection ), classic cars, first edition books – they are all forms of wealth. If you have a particular interest in any of these collectibles so much the better. As there is only 140,000 metric tonnes of gold in the world, in volatile times the price reflects that volatility. There have been more ups than downs over the last few months. Highest price ever obtained was $2,431.55 ( €2,251.43 ) per troy ounce ( slightly heavier than our school-days avoirdupois ) in April 2024. Gold certainly is an alternative and a hedge against currency and stock market meltdowns – current price is c. $ 2,322.60 (c. € 2,155.37 ) per troy ounce but how do you buy it ? You could buy it via an ETF or as part of an index fund, directly into South African gold mine shares, coins like sovereigns or krugerrands ( ounce of pure 24 carat gold in a coin ) but then you may have storage problems and security issues. Simple route would be to invest in Perth Mint Certificate Programme where you pay a fee of 2% to 3.9% on buying the yellow metal and 1.5% on selling – minimum € 7,000. Stored in the Perth Australia mint, it is the only one in the world that has a AAA rated government guarantee where you receive a certificate for your investment…email me for details but whatever you do as this is an unregulated activity, you should seek professional advice.