Trading/Investing in physical gold

Hi

I there anyone who trades / invests in physical gold rather than in EFT or "spot gold" via a broker

Has anyone used http://www.bullionvault.com/

Anyone trading / investing gold with leverage?

Anyone doing anything like this?

All info will be very welcome

Thanks for your time

Rooi

hi Rooi, Bullionvault has a very big spread compared to ones in Oanda (XAU/USD). the advantage of using Bullionvault is because you really own a physical gold which is kept in a professional vaulting operator with daily audit on the gold bars. however, you will be paying monthly costs for keeping the gold. if you are really up to owning physical gold, Bullionvault is an excellent choice. if you are an active trader, then don't use them. instead use forex brokers offering gold pairs like Oanda or go for the ETFs. hope this makes sense.

Hi Jerbersoftfx

I agree that the spreads are higher but the swaps are lower.

Im looking for the cheapest way for buying and holding gold for years to come.Selling some every now and again but mostly holding so need cheap storage/swaps

The problem is you cant really keep gold under your bed or at home in my opinion.I live in South-Africa.Not too safe

I trade the FX pairs intra day but would like to trade/invest in gold on the bigger swings in the cheapest way.

All the best

Rooi

hi Rooi,

then yes, bullionvault would be for you then. they have the cheapest way to get physical gold IMO. and it is audited daily so you'll be able to check it out. their support is awesome, they respond fast and they really help you on your questions.

I think the lowest cost way to hold gold over a longer period of time is with ETFs.
If you purchase physical gold, you'll need to pay for storage, insurance and the initial mark-up from the seller.
With ETF's there's just the expense ratio you'll pay each year.

GLD:
-expense ratio = .40%
Example: $10,000 worth will cost $40 a year plus the commission from your broker depending upon how many purchases you make.

IAU:
-expense ratio = .25%
Example: $10,000 worth will cost $25 a year plus " " " " " " " .

Personally, if I were(and I am) investing for the long-term, I'd use options. Less downside risk & much less cash required for the investment.