(UK) investment advice for a beginner - gold/silver etc.

fingolfin posted on Mon, Oct 6 2008 6:05 PM

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Hi all! I'm a 26 year old writer/software tester and I 'study' economics on Mises.org for about 30-40mins most nights after work and at weekends to learn as much as I can about liberty and economcs. I've been doing this for about a year now.

I would very much like some advice about buying some gold/silver or investing in something 'solid' to protect my money from inflation etc. I really do not have much money/savings at all - it would be a small amount each month that I could afford (or perhaps I could save up for a few months at a time) - maybe some coins or small bars. I am worried about getting ripped off. I'm not sure where to buy and how to keep my purchase private/safe/secure etc. I don't have a very well-paid job but I think my industry is fairly secure right now. I have no outstanding debts but I am struggling meeting the bills every month now I'm living on my own again.

I'm concerned that if the economy really goes down hill very badly (I'm talking future riots and food shortages kinda stuff) - then how do I access or use my gold/silver - who would accept it? If I buy bars how might I use them for smaller amounts etc? Could I get it into e-gold etc for buying stuff online? If it's in a bank might the banks or government take it? 

I have been looking eagerly at the following websites:

http://www.guernseymint.com/ - nice looking stuff and they say they can keep it protected for you; would maybe have the advantage of being tax-free offshore in Guernsey? 

http://www.goldline.co.uk/ - mainland UK, looks very professional?

http://www.taxfreegold.co.uk/ - the tax-free bit got me, is this real? So much info!!!

http://www.e-gold.com/ - OK I'm still trying to get my head around how this works - can you actually buy 'stuff' (i.e. food, clothes etc) with e-gold? If so, how come I've searched and searched but cannot find any website accepting this currency? How do I actually get gold into it / out of it? I udnerstand you can't trade e-gold for cash, so do you have to request your gold first, then change to cash elsewhere? Please advise.

Should I really go with gold over silver? Silver seems like a 'gentle start' to me but I do worry that gold prices will be going up so I'd need to buy asap... ? I'm sorry for all these questions - I'd very very much appreciate some experienced/qualified advice from you guys, especially if you're based in the UK. I'm a total n00b!!!  I truly love this website and its cause of liberty but I'd prefer not to be utterly broke when the time comes to once again claim back some freedom from our tyrannical oppressors!

Thank you all sincerely in advance.

"Fingolfin"

Edit: just been looking at this one too http://www.londongoldexchange.com/ trying to make heads and tails of it...