Lux Investing
How to invest in commodities in the UK?
How does the average man in the street invest in commodities in the UK? I mean if I wanted to invest in gold or oil or exchange how do i go about it? do i have to go to a financial advisor? if so what fees do they charge and at what point? are there any other ways especially no fee options?
Public Comments
- Firstly, I would recommend reading a good introduction to investment to see what type of investment 'vehicle' you think best - whether in shares, funds, investment trusts etc. E.g. the FT Guide to Investment. Shares in specific companies are an option, but you'd have to do quite a bit of background research. Unit Trusts & Investment Trusts are an option. Exchange Traded Funds (ETFs) have lower charges than trusts/funds, and give more transparency. Take a look at www.trustnet.com for the commodities investment options. iShares (www.ishares.co.uk) are a popular supplier of ETFs in UK. Also, get a copy of the FT and look for the listing of ETFs. Buying these is relatively easy - shares/trusts/ETFs can be bought directly from an online broker, funds directly from the company, or through a financial advisor. You pay fees and management costs for the funds, brokers fees and possibly tax on the 'share-like' investment. Tax is payable on the winnings, though they can all usually be put in an Individual Savings Account (ISA). See a financial advisor for more advice.
- The easiest way is usually buying the shares rather than the commodity itself. For example if you wanted to buy gold, an amount less than 1kg will result in a very heavy premium (gold bars from 1g upwards are available but are priced approx 4% above their weight price). It is better to buy the shares in a gold mining company
