kilos coins or 1oz gold

[ChrisSilver]

I wasn't too impressed initially with the koala coin this year, and I also generally didn't like the matte finish on the kilo koala compared to the other sized. 

 

But this years koala actually looks quite nice in a matte kilo version in my opinion. 

 

If you could either purchase a 1kg 2014 Koala & a 1kg 2014 kookaburra OR a 1oz 2014 gold kangaroo, what would you purchase?

 

Answer the poll above.

[Danny-boy]

I can't answer the poll but you know where I'm at....

1kg Kook all the way.

I would, however, buy lots of 1oz kooks though myself, but I'm a 1ozer.

[ChrisSilver]

I can't answer the poll but you know where I'm at....

1kg Kook all the way.

I would, however, buy lots of 1oz kooks though myself, but I'm a 1ozer.

 

Yea, personally I prefer the 1oz kooks.

But ever since I purchased a kilo coin last year, I now have it in my head that I MUST get each of the kilo kooks, koalas, & lunar coin from now onwards, I am already a bit annoyed that I missed the opportunity buy a kilo 2013 kook. I will have to get one in the future in some sort of a trade.

This is why I am not going to buy any 2oz or 5oz. If I do I would have to buy 1 of these each each year as well. And I can't afford to do so.

Interesting if everyone here favours the silver purchase, or if there are some takers for a 1oz gold coin instead.

 

[strenue]

Kilo Lunar Dragon is very impressive.

For that matter any kilo lunar.

I also once had 5x 1 kilo 2009 kooks, they were very striking indeed.

[HCON73]

As awesome as 2 kilos would look side by side, I'd have to go with the 1oz gold kangaroo. I really

Iike the Perth Mint coins (gold and silver).

[Shamatti]

I'd take the silver because it is more liquid, I can sell it in two transactions to raise a little cash whilst keeping one to apreciate. I love the big Kilo coins, they are beautiful! And also I already have a gold 1 Oz Kangaroo, but I don't have a kilo Koala, and my kilo Kook is last yeras!

[ChrisSilver]

I'd take the silver because it is more liquid, I can sell it in two transactions to raise a little cash whilst keeping one to apreciate. I love the big Kilo coins, they are beautiful! And also I already have a gold 1 Oz Kangaroo, but I don't have a kilo Koala, and my kilo Kook is last yeras!

 

I'd be up for a deal if you wanted. I am after a 2013 kook. And I have a spare 2013 koala

Id happily swap my spare koala + cash (or additional silver) for a 1oz Gold Kangaroo. 

 

Then I could buy the 2014 koala and kook. And still be able to get a 1oz Kangaroo.

Let me know if you are interested in some sort of trade, if not it's cool.

[motorbikez]

As we are talking about 2014 koala & kook I'd go for the 1 oz kangaroo,mind I've already got one.

[Shamatti]

I'd be up for a deal if you wanted. I am after a 2013 kook. And I have a spare 2013 koala

Id happily swap my spare koala + cash (or additional silver) for a 1oz Gold Kangaroo. 

 

We will have to talk when I get back. I do have a 2013 1Oz gold Roo. I might be willing to look at a GSR swap when I get back. Current GSR is 65.45 so thats 2 Kilos and 3.45 ounces for the 1Oz gold. of course that might change considerably over the next week or two! lol We'll talk!

[motorbikez]

We will have to talk when I get back. I do have a 2013 1Oz gold Roo. I might be willing to look at a GSR swap when I get back. Current GSR is 65.45 so thats 2 Kilos and 3.45 ounces for the 1Oz gold. of course that might change considerably over the next week or two! lol We'll talk!

 

That is a very good way of valuing bullion for a swap.

[ChrisSilver]

That is a very good way of valuing bullion for a swap.

I disagree. It doesn't take into account the premiums.

[ChrisSilver]

For example: the cost to purchase 2 current year kilos is a lot higher than to purchase 1oz of gold at the movement.

[Shamatti]

I disagree. It doesn't take into account the premiums.

 

It's the way to swap gold and silver, for me. Any way it's swings and roundabouts - what is the premium on a 2013 gold Roo compared to current year silver?

 

Also, doing a $ for $ swap would mean my loosing out on the deal. Spot has fallen since I started purchasing.

 

It's all good though lol We'll find a deal in there somewhere I am sure!

[motorbikez]

GSR stops an argument as someone will always argue about premiums,bullion is bullion,the trouble is where in the world you purchase coins and the tax/VAT rate so if you use GSR there's no argument IMHO.

 

But at the end of the day it is deal between two willing parties.

[Shamatti]

I have done a number of GSR swaps, and a few $ for $ swaps. Sometimes you can get a better deal going the cash route. At the end of the day though things are only worth what people will pay for them, so it is all about the negociation. You meet in the middle, everyone is happy. How can you not be happy with a pocket full of gold or silver?

[ChrisSilver]

I disagree motorbikez. You can't use GSR because it's not as simple as swapping silver for gold or gold for silver. Different silver and different gold has different market values.

I know it's bullion. But not all bullion costs the same.

I think the best way to do a trade is for people to say what price they would like for an item, and then the parties negotiate on the item value if needed.

For example, 1 person says I have this gold coin and I would like X amount of $ for it.

The other party says, I have this silver I would like X $ amount for it.

If both parties believe the valuations are fair then they can make up the difference with either more bullion which they have also agreed the value of, or by cash. If they can't agree then obviously they don't trade.

I think that's the only way to fairly do a trade, unless your swapping plain old silver for plain old gold.

[ChrisSilver]

http://www.gold.de/preisvergleich,12,Kookaburra.html

Cheapest 1kg koala in Europe, is €539.59

http://www.gold.de/preisvergleich,12,Kookaburra.html

excluding all shipping costs / transaction costs / exchange rate loss. Total in GBP is around £900 for 2.


1oz gold kangaroo can be purchased for around £838 from atkinsons (including all costs and delivery)

 

http://atkinsonsbullion.com/gold-coins/2014-australian-kangaroo-1oz-gold-coin


This makes 2 current year kilo koala coins around £62 more expensive in current market value terms than a current year 1oz gold kangaroo.


Things would get even messier in this sort of trade when you decide how the shipping costs would be covered. Each would pay the shipping costs to send the items? or pay for the items to be sent to himself? Or split the cost evenly? 

Seems like it would become a bit messy and not so easy as I first thought to make it fair for both parties.

Would be easier to just sell X item to then purchase X item.   

[motorbikez]

I disagree motorbikez. You can't use GSR because it's not as simple as swapping silver for gold or gold for silver. Different silver and different gold has different market values.

I know it's bullion. But not all bullion costs the same.

I think the best way to do a trade is for people to say what price they would like for an item, and then the parties negotiate on the item value if needed.

For example, 1 person says I have this gold coin and I would like X amount of $ for it.

The other party says, I have this silver I would like X $ amount for it.

If both parties believe the valuations are fair then they can make up the difference with either more bullion which they have also agreed the value of, or by cash. If they can't agree then obviously they don't trade.

I think that's the only way to fairly do a trade, unless your swapping plain old silver for plain old gold.

 

As I said in my last post GSR is a good starting point, as you have already started arguing about premiums postage costs etc.But it is a deal to be thrashed out by two willing parties and there has to be a starting point somewhere for negotiations.

[Shamatti]

Don't forget that doing a GSR swap is about quatity.

EG a trader asks for 65 Oz that could be ANY 65 ounces of silver - 65 X 1 Oz rounds for example. It's just a matter of agreeing between the two parties what is acceptable.

 

GSR swaps are very common. It's not realy about value, it is about ratios. Making profit regardless if spot is falling or rising. EG I could swap silver for an ounce of gold at a GSR of 55:1 then swap it back to silver at a GSR of 65:1 and regardless of prices rising or falling I just scored a 10 Oz silver profit.

[Danny-boy]

But surely there will only be people wanting to swap one way dependant on the price differential between gold and silver?

[Shamatti]

But surely there will only be people wanting to swap one way dependant on the price differential between gold and silver?

 

You'd think so, but everyone is at a diferent part of the cycle. Also, peoples own strategies will be diferent. I might see that swaping for gold now is a good idea as the market and the ratios are rising. You might see swapping for silver now a good idea as you have already made so much profit on your gold you want to grab Silver before the prices rise any further.

[strenue]

GSR is great for low premium and/or high volume swaps.

i.e. low premium silver bars/rounds for low premium gold {most gold from 1oz up in weight is generally low premium, unless there is something very special about the coin/bar}

 

I am currently negotiating a couple swap deals locally involving 1oz silver kookabura coins to gold fractional lunar coins {1/10oz}.  We have not even considered GSR in the swap, as the premiums vary too much per each coin involved in the trade.  Kookaburras depending on their year {mintage} all have varying premiums.  Fractional gold lunars depending on their year {mintage} have varying premiums too.

 

It does mean you have to have quite a good market knowledge on the value of the coins you have and the coins you are swapping for, however the opportunity cost is way too high to do it any other way for higher premium items.

 

STRENUE

[Pete]

A real stacker will have both !!

[ChrisSilver]

Seems like most favor the gold according to the poll.

[Danny-boy]

I think it would be a different story if it was 1oz of gold or 65 x 1oz rounds.

The kilo coins are too illiquid.