Buying physical Gold to pay with and allowing members to invest in Revolut


#1

Adding Gold to the assets people can buy to pay in fiat currencies would be useful and more stable than cryptos.

Also, many people are interested in investing in Revolut because it provides ease of use and cuts the high costs traditionally charged by banks but there isn’t a way to do that, is there any plans to give members an option to invest?


Buy Gold, Silver, Platinum - and / or XAU
#2

I agree with Thornabian. And it seems to me that the potential impending demise of FIAT means that holding Gold as a more viable payment system.


#3

Gold investment would be awesome :slight_smile:


#5

My point is that GOLD will perhaps regain it’s status as the true currency; if you read anything of Alastair Mcleod you would perhaps agree. (I would assume that Revolut would hold Physical not Synthetics via, say PHPG. I mean – how much Gold do you hold in your portfolio anyway (I’m at about 12%- might as well put it to some use?).


#6

You would own the gold by constructive possession. Some competitors are doing it/looking into it.

What this would mean is you own the rights to the gold but it may be impractical to receive delivery of it e.g. you don’t own a oz/kg/100g worth to have it delivered. It might also be too expensive for delivery unless you pay a fee but that would be all T&Cs and how Revolut would like to do it.

You would still have ownership of the benefits of gold though but it would likely need a small fee to be commercially viable for Revolut, say 0.5%. Still beneficial for Revolut users too.


#7

My point is that GOLD will perhaps regain it’s status as the true currency; if you read anything of Alastair Mcleod you would perhaps agree. (I would assume that Revolut would hold Physical not Synthetics via, say PHPG. I mean – how much Gold do you hold in your portfolio anyway (I’m at about 12%- might as well put it to some use?).

(I’m already trading FX, commodities and indices :-)).


#8

But I do agree with you. If shtie hits fan gold bullion (or coins) is the only safe bet.

M J Hardwicke, Java Services Ltd.
+60 13 257 4388
+40 7540 159820


#9

Why did you post those phone numbers?


#10

He responded most likely by email. And that is his mail signature.


#11

In Error!

Mike Hardwicke
+60 13 257 4388
+44 7542-159820


#12

Agreed, adding gold and silver would be a great opportunity.


#13

Leave gold alone. It’s a myth. An analysis going back to 1977 (with data supplied by BullionVault), highlights:

US stocks had the best return, up 7,259%, almost 11x more than an investment in gold.

Gold had the second most negative years , just behind commodities.

Equally, it had the second fewest positive years

…and the worst volatility (in terms of range of annual returns)

Clearly, holding gold for the long-term is not the best strategy, and its reputation as a safe-haven asset is daft.

Of course, more often than not it’s what investors believe that matters. And exploiting investors’ beliefs (or behavioural biases) can be a very profitable strategy.


#14

Return! How about keeping its value?

Taking inflation into account, does gold still have - more or less of course - the same value as it did 77?

I could only find numbers up until 2015, but it seems it was $160 in 1977 and $1,060 in 2015. So it would seem it does keep up with the inflation.


#15

Adjusting for inflation and using BoE calculators, using £ not $. An amount of £160 in 1977 is now the equivalent of £897 in 2015.

Therefore what’s the point? I would rather of invested in the US stock market (e.g) as my £160 would now be worth £11,614 (2017), whereas my lump of gold would be worth more or less the same.

Again, clearly, holding gold for the long-term is not the best strategy, and its reputation as a safe-haven asset is daft.

Of course, more often than not it’s what investors believe that matters. And exploiting investors’ beliefs (or behavioural biases) can be a very profitable strategy.

Of course if you don’t want to be wealthy and just want to ‘keep up’, fill your boots with gold, its shiny :wink:


#16

So it does cover inflation.

To avoid inflation.

Certainly, if profit is your goal. If you want to keep its value gold would do fine. Also, the stock market could crash, whereas gold might fluctuate but wont crash.

Not the same, as it does keep up with inflation.

I would not say either.

How does one get exploited by investing in gold?


#17

The figures are clear. Investing in gold as a store of wealth does not make you wealthier, investing in the stock market does. There is no disputing this as the facts speak for themselves. Over the long term (pound cost averaging) investing in gold is little better than placing your money in an index linked savings bond with a high street bank. (or similar).

Personally I would rather have capital growth rather than a basic inflation proof asset. Maybe I’m in the minority of people who actually wants to achieve an increase in wealth rather than remain in a perpetual state of financial stagnation.


#18

That was not the point though.

That is pretty clear by now :slight_smile: but not everyone has that goal. The key factor is that inflation should not eat up everything you have and gold seems to be a viable solution here.

I am not quite sure what you are arguing about though. Gold, obviously, is not for you, but that does not mean Revolut should not offer it. I, for one, would appreciate that opportunity.


#19

So assuming the objective is not to become wealthier, but to keep up with inflation, then gold would seem to be a viable alternative over the long term, with the emphasis on long term. The gold market has peaks and troughs so holding gold for a short term period less than (say) 10 years, and perhaps timing the market at the wrong phase of the cycle may prove to be costly.

Over the short term you would be taking on the same risks as investing in the equity market, but with far less reward.

To abate this it would be less riskier, if the sole objective is too keep up with inflation and not become wealthier, for Revolut to offer fixed rate savings bonds (or similar) and not a shiny piece of metal to inexperienced customers who may not understand market complexity.

Incidentally, the gold price is approx 15% lower today than it was at the same time two years ago. Or 25% lower today than the price at this time in 2011. So not particularly inflation beating if you had invested at these points in the market?


#20

So what would your recommendation be to a risk-averse person to keep up with the inflation?


#21

Risk free, you are limited. Fixed rate savings account perhaps. But you would barely keep up with inflation at cira 2.5% AER locked in over 5 years.

That is why there are a lot of savers out there who have switched to equities as they have no choice unless they want their assets to be continually eroded by inflation.

If you wanted to take that plunge I would recommend a UK property fund which is stable. Brexit risk aside, you have to be ready to sell the moment there is any sign of a recession.

A lower risk stable example (such as the one below) will return approx 5% yearly capital growth, and a yearly yield approx 4% (simplistically 10% and tax free if in an ISA).

https://investorhub.financialexpress.net/factsheethtml/telegraph/en-gb/dtg/?TypeCode=FO:A6Z5&specialunittype=ORDN&MPCategoryCode=&Category=&priipproductcode=&RangeCode=16000469

(Note the blip was due to the extraordinary circumstances of BREXIT, otherwise growth is smooth)