Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
How to Capitalise on the Robots - 20th June 24
Bitcoin, Gold, and Copper Paint a Coherent Picture - 20th June 24
Why a Dow Stock Market Peak Will Boost Silver - 20th June 24
QI Group: Leading With Integrity and Impactful Initiatives - 20th June 24
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24
Bitcoin Trend Forecast, Crypto's Exit Strategy - 31st May 24
Zimbabwe Officials Already Looking to Inflate New Gold-Backed Currency - 31st May 24
India Silver Imports Have Already Topped 2023 Total - 31st May 24
Gold Has Done Its Job – Isn’t That Enough? - 31st May 24
Gold Stocks Catching Up - 31st May 24
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How to buy and hold Gold Bullion - Bullionvault update

Commodities / Gold & Silver Mar 25, 2007 - 07:38 PM GMT

By: Nadeem_Walayat

Commodities This article is an update to the article Buying gold - The easy and safe way for personal investors to Buy, Sell and hold gold at market price , which covered the technical aspects of buying and holding gold with Bullionvault.com, and now we look at what to expect from holding your own gold investments in terms of real returns after charges.


Firstly the reasons of why part of ones portfolio should be in gold bullion are briefly because the governments of the world are busy issuing ever more paper money by as much as 15% per annum (money supply), which is devaluing all currencies and some more than others. This means inflation, you may not be seeing inflation in the CPI and other inflation measures but it is occurring in the form of asset price inflation. As long as it continues, physical commodities such as gold, which governments cannot print ever more of, will gain in price, couple that with the new thirst for gold from the emerging chinease and indian middle classes, then that reinforces the view that the gold bull market has much further to go .

So you have opened your account with bullionvault.com and are ready to invest money into gold ? If not then take advantage of a special FREE BONUS offer from Bullionvault, of 1 gram of free gold, which at current price of gold is worth some $25.

Exactly how much gold do you need to hold with bullion vault for the investment to prove profitable. The price expectations are for gold to move to $900 over the next 12months, on the current price of gold that implies a gain of 38.4%

Examples of how much real return you will see from holding gold for 12 months, based on a target price of $900 which on $650 represents a gain of 38.4%. Examples for a 10% gain to $715 and 20% to $780 are also given.

$ Amount of Gold purchased Transaction costs to Buy AND Sell & Withdraw funds ($) Total Fees charged for storage for 12months ($) $ Value of investment should Gold price rise by 38.4% Actual real % return of original investment net of costs
38.40% 38.40% 10% gold 20% gold
100
31.6 48 47 -53% -73% -66%
250
34 48 251 0% -24% -16%
500
38 48 591 18% -8% 1%
750
42 48 932 24% -3% 7%
1000
46 48 1272 27% 0% 10%
1500
54 48 1953 30% 3% 12%
2000
62 48 2634 32% 4% 14%
3000
78 48 3996 33% 6% 15%
4000
94 48 5358 34% 6% 16%
5000
110 48 6720 34% 7% 16%
7500
150 48 10124 35% 7% 17%
10000
190 48 13529 35% 7% 17%
15000
270 48 20338 36% 8% 18%
20000
350 48 27148 36% 8% 18%
50000
670 60 68213 36% 8% 18%

(Charges included - 0.1% per month, minimum $4; $30 to withdraw funds,

The analysis shows that investing in the region of $750 or less, is likely to attract high charges, if the price of gold failed to rally by 10% or more. The effective minimum would need to be $1500 to make the investment viable, which would enable the investment to reap a solid return from any strong rise in the price of gold.

How much to invest in gold ? Any investment in one particular asset class must be on the basis of your risk profile and portfolio considerations. Baring that in mind, a typical minimum % to commit to one asset class would be 5% of ones total net asset value. So if your total net assets are valued at $500,000. Then you could view a long-term gold investment in the order of $25,000 as a starting point.

Note : The 1 gram of FREE BONUS gold is not subject to the storage fees*

* As per rules at time of publication of this article.

By Nadeem Walayat

(c) MarketOracle.co.uk 2007

The Market Oracle is a FREE Daily Financial Markets Forecasting & Analysis online publication. We aim to cut through the noise cluttering traditional sources of market analysis and get to the key points of where the markets are at and where they are expected to move to next ! http://www.marketoracle.co.uk

Disclaimer - This article is provided for general information purposes only and not a solicitation or recommendation to enter into any market position, and you are reminded to seek independent professional advice before entering into any investments or trading positions.

This article maybe reproduced if reprinted in its entirety with links to http://www.marketoracle.co.uk


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in