How to invest in Gold and Silver in Ireland

  • By: Walter Dunphy ACCA
  • Date: November 8, 2023
  • Time to read: 3 min.

Investing in gold and silver has long been seen as a safe haven for those looking to diversify their portfolios and hedge against economic turmoil. While there are many ways to invest in gold, such as through gold stocks, ETFs, or physical gold bullion, for those in Ireland, it can be challenging to know where to invest.

In this blog post, we will explore the best place to invest in gold in Ireland.

Physical Gold and Silver Bullion

One option for investing in gold is to purchase physical gold bullion. There are numerous dealers and retailers in Ireland who offer gold coins and bars.

Some of the most reputable dealers include GoldCore, Bullion By Post, Merrion Gold, and to name but a few.

The service offered can vary from dealer to dealer. Some dealers will store the gold for you, and offer gold-saver accounts. Whereas, others will only offer the service of delivering your order and you will then be responsible for storing your own gold.

Just be aware that buying physical bullion will be the most expensive way to invest in Gold and Silver. Dealers will usually add in a quite a large markup on the cost of buying and selling the precious metals.

Also, if you are opening a gold saver account that involves the dealer storing the gold for you, then there is likely to be a 1-2% annual management charge applied to your account.

It is essential to do your research before purchasing physical gold to ensure you are buying from a reputable dealer and are getting a fair price. Know what the spot price of gold and silver, and use it as your guide.

Gold and Silver ETFs

A far more cheaper option available to investors are physically backed Gold and Silver ETFs. For example, the iShares Physical Gold ETF just have an annual ongoing management charge of 0.10%. An investment of €10,000 will just set you back approximately €12 in fees over the space of a year.

An important consideration to factor in when you choosing the right ETF for you is currency. Some ETFs may be priced in US Dollar, Sterling, or Euro, which could open up FX risk to your investment portfolio.

Any broker that is worth its salt will have precious metal ETFs or Gold and Silver trackers, here are some brokers worth checking out:

  • Trading 212
  • Degiro
  • eToro
  • Revolut
  • BUX Zero

Stocks of Gold and Silver Mining Companies

Another roundabout way of investing in gold, would be to add some shares of companies that are involved in the Gold and Silver mining industry. While it is not the perfect substitute for investing in gold directly, a study of daily return data showed that the correlation of gold mining stocks with gold is 0.76.

One advantage of this way of investing in gold is that you can invest in companies that pay dividends. This makes up for one downside of investing in gold directly, in that it does not bring you any yield.

On the other hand, investing in gold mining companies may defeat the purpose of why you wanted to invest in gold in the first place, as a safe haven in times of market turmoil. It opens you up to the risks that the company you are invested in could see poor results from bad corporate management and governance.

Some examples of companies involved in the Gold mining industry are:

  • Barrack Gold
  • Newmont
  • Yamana Gold

Are precious metals really a good investment?

Not all analysts believe that Gold and other precious metals are a good investment. Dave Ramsey for instance in a YouTube rant, explains that Gold has a fixed supply and it is almost, but dose not produce anything unlike a company.

It is impossible to predict whether people will be scared enough to move all their money over into Gold and drive Gold prices up. Whereas, you can analyse a stock and put together a model based on its earnings and cashflows to come up with a valuation that has mathematical reasoning.

Disclaimer, this blog post is for informational and educational purposes only and should not be construed as financial advice.

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