Monday, 5 September 2011

Gold Investment Update

As you might remember I opened a GoldMoney account last month, hoping to invest in silver. In the end I decided to buy some gold as the transaction fees are lower for gold than silver.

My account took a week to authorise, once that was done I deposited £20 as a test, this took 3 days to clear so I bought 0.537 grams of gold at a rate of 36.2100/gg , not much obviously. You also have to take into account the transaction rate of 2.74% and a storage fee of 0.1 gold grams per months.

Now its the start of a new month I currently have 0.437 gold grams left, which is worth £16.57. Even though gold has risen in value during that time I've made a loss from the fees. I am planning of cashing this out before the end of the month before any more storage fess, hopefully with a small profit.

With the fees involved it looks like I will need to invest a couple of orders of magnitude more than £20, to negate the fees in order to make this worth while. I'm still pretty sceptical that gold trading is useful for the small investor, let me know what you think.

20 comments:

  1. thats not too good :/ I would have given this a go if I thought it could have been even SLIGHTLY profitable, as it would have been fun, but it seems that it isnt worth it, Thanks for the post!

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  2. I have never invested money like this before. Good luck with your gold!

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  3. Dam cant believe u made a loss on the first month, always so many charges and shit involved with these things (N) good luck with it though

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  4. I'd pull out if I were you, it's not even worth it

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  5. hmm great idea :) nice blog :) followed :)

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  6. Yeah... i don't think this is something for small time investrers

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  7. Good luck with the investment! Be careful and don't get too excited-it's a job, after all, not lottery.

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  8. Gold's gonna skyrocket the prices as soon as markets become even more destabilized in a year. Brace for epicness, guys.

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  9. "stocks rises by stairs, and go down in elevator" ha funny tip that remind me this...i hope the gold thing came out good for you :D

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  10. I guess you have to buy in larger volumes before you can take an increase in value. Otherwise the transaction costs outweigh any gains.

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  11. Interesting, I was wondering what all this fuss was about gold lately. So I have to invest a significant amount if I want it to be worthwile? Interesting...

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  12. looks great srly

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  13. I always wanted to invest in gold, maybe someday

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  14. I love gooooooooolldd..... the taste, the texture... lol. Thanks for the insight, I didn't realize the fees involved with gold investment. IF you invest in more, I hope you profit!

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  15. Would love to try!

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  16. That's what forex leverage is all about.

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  17. I love investing my money in gold, it will surely help me in the future. Thanks.

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