Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20
U.S. Long Bond: Let's Review the "Upward Point of Exhaustion" - 27th Jun 20
Gold, Copper and Silver are Must-own Metals - 27th Jun 20
Why People Have Always Held Gold - 27th Jun 20
Crude Oil Price Meets Key Resistance - 27th Jun 20
INTEL x86 Chip Giant Stock Targets Artificial Intelligence and Quantum Computing for 2020's Growth - 25th Jun 20
Gold’s Long-term Turning Point is Here - 25th Jun 20
Hainan’s ASEAN Future and Dark Clouds Over Hong Kong - 25th Jun 20
Silver Price Trend Analysis - 24th Jun 20
A Stealth Stocks Double Dip or Bear Market Has Started - 24th Jun 20
Trillion-dollar US infrastructure plan will draw in plenty of metal - 24th Jun 20
WARNING: The U.S. Banking System ISN’T as Strong as Advertised - 24th Jun 20
All That Glitters When the World Jitters is Probably Gold - 24th Jun 20
Making Sense of Crude Oil Price Narrow Trading Range - 23rd Jun 20
Elon Musk Mocks Nikola Motors as “Dumb.” Is He Right? - 23rd Jun 20
MICROSOFT Transforming from PC Software to Cloud Services AI, Deep Learning Giant - 23rd Jun 20
Stock Market Decline Resumes - 22nd Jun 20
Excellent Silver Seasonal Buying Opportunity Lies Directly Ahead - 22nd Jun 20
Where is the US Dollar trend headed ? - 22nd Jun 20
Most Shoppers have Stopped Following Supermarket Arrows, is Coughing the New Racism? - 22nd Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

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


© 2005-2019 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

6 Critical Money Making Rules