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

Where should Revolut store said gold? Unless we are talking about paper commodities there are issues tied to the cost of storage. Even in the case of gold futures, there would still be issues under the point of view of margining… This is why I think that Revolut should focus on core stuff, such as obtaining the banking license, internalising the payment processor or even adding Apple pay support.

They could offer something like Uphold. To keep it “free”, they could factor in storage costs similar to how they’ve designed the crypto offer. But I agree, there are some things on my personal wishlist as well that are of higher priority. But if people ask for that kind of investments, I don’t mind if they add it eventually.

The latter I would not consider “core stuff” but on the same level as the request for gold. But as for the licence and the overall workflow, I’d be definitely with you on this. This ought to have priority over everything else.

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I can see them adding gold and other precious metals once their “wealth” add-on is live. From what we know, they want to start with selected US and UK technology stocks, and then ETFs. Unless there’s critical popular demand for gold, my guess is it won’t be on their table anytime soon.

If Revolut are to start selling ETF’s, which in itself is a dangerous offering to the average individual, they may well provide access to a Gold Commodity ETF, of which there are quite a few.

Well, it won’t be more “dangerous” than the crypto offerings :wink:

As far as I know, they’re focusing on selected technology stocks and ETFs for the wealth feature. Think Robinhood, integrated into the app.

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Not getting into another argument about gold v. equities, because everyone got their point of view from which they’re not budging. But…

Suppose you are John. Q. Turkishguy right now watching your Lira account dissolve. Do you wish you bought gold instead of Lira?

It’s an old saying but the smell to me right now is not about return on your investment, it is about return of your investment.

Yes easy gold buying with Revolut would be nice.

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:laughing:

twentytwenty

There is no argument, the figures speak for themselves :wink: Gold has kept up with inflation over the last 40 years, whereas US stocks have risen by 7,259%, almost 11x more than an investment in gold. The person with gold maintains his wealth whereas the investor in stocks becomes considerably richer. (I want to improve, not stagnate).

In the case of the Turkish guy he certainly has a conundrum. Which is to a lesser extent similar to the position in the UK, as the pound has fallen by circa 15% since Brexit. For the average man in the street this is not good due to inflation. But for the investor who has exposure to UK or Turkish companies who receive remuneration in dollars they will benefit from a devalued GBP or Lira.

In respect of gold, it really depends on when the Turkish man bought his gold, as the price of gold is volatile just like equities. As mentioned earlier the gold price is approx. 15% lower today than it was at the same in 2016, and 25% lower than in 2011. But as the lira has fallen so drastically, even with this drop the conversion from USD back to Lira may well offset.

It is a complicated issue and there are many options to protect against a falling currency, and too complicated to talk here, shorting undervalued currency etc. One trend however for people who live in countries which are less stable and secure is to hedge foreign assets into their portfolio, be that currency, property, equities or even gold.

The Turkish guy would benefit in this instance if he had, say, FANG stocks right now which would offer protection against the falling Lira. (one of many many options)

As to the comment that, “it is not about return on your investment, it is about return of your investment”. We are now in the longest bull run in history! If you have been sleep walking and not investing in equities since the global financial crisis then you have missed out on the greatest opportunity in living memory (probably never to be repeated). Even an average investor utilising his part ISA allowance has become much wealthier. (not Cash ISA!). There are plenty of ISA millionaires out there that will testify to that.

But the game is not over yet, tech stocks (USA and China), and investment portfolios in India, Japan and wider Asia Pacific still present excellent opportunities. Still climbing climbing climbing, albeit there is a short term risk until the trade war issues settle. But beware, it could all come crashing down in an instant as you might be investing at a peak. 2009 was the time to enter the party, it’s now not far until midnight… Is my clock running fast, who knows!

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For my Sixpence worth, A great Idea, and I’d like it as an option to play about with it as I do with Crypto and currencies.
BUT when the crash comes in 2019-2020 or sooner I prefer to have physical possession of my Gold and not on a companies Ledger or exchange.

When this crash comes the ONLY instruments will be BTC/Crypto Or Physical Gold.
Try to get your lolly from the bank then, Remember Cyprus and look at Finland.

God help us Mark Carney won’t.

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I agree with you I also would love if Revolut would give me the option to invest fiat currency into gold like they already do with Bitcoin. !

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Hi all.
I am new here and this is my first post. I am unsure if this is even in the correct section.
Just a quick question.
I have a fair sum in silver on revolut. Lately there has been a lot of talk about the implementation of Basel 3. Does anyone know if revolute has this covered? I am confident I wouldn’t loose my funds but I still would like to keep my position on silver and am wondering if I should be looking for an alternative.

Thanks

Marc