What is the best size gold to stack?

[HighlandTiger]

Any series of gold coins like the QB only holds its value whilst people still want them. Will they be collecting them in 30 years time, or will there be new things for collectors to collect. The collecting world is littered with "the next big thing", only to find when you try to sell a few years later that no one wants them.

 

Remember, coin collecting, just like stamp collecting is a dying hobby, kids are just not interested in things like this anymore, (and these are the people you have to try and sell too). You only have to look at the average ages of customers at stamp and coin fairs to see this.

Old coins like Sovs, will always have their collectors, the newer coins, not so much.

[bluemoon]

10 minutes ago, HighlandTiger said:

Any series of gold coins like the QB only holds its value whilst people still want them. Will they be collecting them in 30 years time, or will there be new things for collectors to collect. The collecting world is littered with "the next big thing", only to find when you try to sell a few years later that no one wants them.

 

Remember, coin collecting, just like stamp collecting is a dying hobby, kids are just not interested in things like this anymore, (and these are the people you have to try and sell too). You only have to look at the average ages of customers at stamp and coin fairs to see this.

Old coins like Sovs, will always have their collectors, the newer coins, not so much.

Yep, any plans on QB's being a future premium to cash in later is merely taking a punt. If you stack for financial stability then near spot spot PMs are still the ones.

[HawkHybrid]

1 hour ago, FoolzGold said:

Checking the pricing on GSBe just now a random QEII sovereign is priced at 2.6% over spot. The QB Yale is at 4.6%. So, okay you're paying 2 points more for the QB, although actually only 1.2% more in real terms. That's a pretty small extra margin for what you can hope will be a much more significant boost when you sell the gold in the future.

I would categorize a purely numismatic investment as one where the initial margin is significantly higher than this and where the resale value is based more on the scarcity/desirability/shininess of the coin than its PM content.

For me the QB is a semi-numismatic investment, where the initial extra margin is a very small percentage over spot and you expect the resale value will largely follow the value of gold but with the added bonus of an extra margin over spot on resale that should hopefully equal or exceed that initial margin at purchase time.

Basically, while the QB series is ongoing I personally believe that investing in the latest 1oz gold QB is going to yield a better return that investing the same sum in sovereigns. I wouldn't argue that for other bullion coins, and I could be wrong about the QBs but that's my personal feeling.

 

 

you're not comparing like with like.

the sovereign is 0.2354 oz.

the premium quoted for the qb yale is for the 1 oz.

this is not comparable as it's already noted that

low premium ~1/4 oz sizes are more liquid.

if buying 1 oz coins is part of the strategy then the

increase in premium is small. otherwise the

increase premium for the 1/4 qb yale is quite big.

 

HH

[ChrisBerg]

I am buying gold no smaller in size than 1/4 troy oz.

[dicker]

17 hours ago, HighlandTiger said:

Any series of gold coins like the QB only holds its value whilst people still want them. Will they be collecting them in 30 years time, or will there be new things for collectors to collect. The collecting world is littered with "the next big thing", only to find when you try to sell a few years later that no one wants them.

 

Remember, coin collecting, just like stamp collecting is a dying hobby, kids are just not interested in things like this anymore, (and these are the people you have to try and sell too). You only have to look at the average ages of customers at stamp and coin fairs to see this.

Old coins like Sovs, will always have their collectors, the newer coins, not so much.

I must say that when I visited the London Coin Fair, I was struck by the age of the attendees.....and I myself am no spring chicken!

[AuricGoldfinger]

One thing i do wonder is what happens to the premiums on a lot of these coins when the next big thing is out. Don’t get me wrong i am also suckered into buying them because it makes it more interesting and the premiums are relatively very small compared to potential gains but i do wonder if eventually these coins will be just in the random 1ozer pile at closest to spot price. Still worth the punt though!

[FoolzGold]

1 hour ago, AuricGoldfinger said:

One thing i do wonder is what happens to the premiums on a lot of these coins when the next big thing is out. Don’t get me wrong i am also suckered into buying them because it makes it more interesting and the premiums are relatively very small compared to potential gains but i do wonder if eventually these coins will be just in the random 1ozer pile at closest to spot price. Still worth the punt though!

All true, but in the end they only need to sell for 1.2% more than a sovereign to have been worthwhile, always assuming you bought the QB when it was a new issue.

Worst case, you've lost 1.2%.

[AuricGoldfinger]

@FoolzGold totally agree - which is why its worth the punt! Also for me personally just having an interest in it helps me stack more. If i was literally just stacking cheapest gold available i would have a real random mix and i am FARRRR too ocd for that lol

[Lr103]

Since I purchased my first gold coin around 6 years ago, the only bullion gold coins that have done very well for me are the 1oz Queen's Beasts. At this point even some of the dealers will buy them back for a large premium and sell them for an even larger premium. I do wonder what will happen in the future, and it will be interesting to see if these premiums hold up. I can make an argument either way, and don't have a strong opinion  

My own anecdotal example aside, if I were looking to maximize return I would go with the 1oz size. While the market might be smaller, when you look to sell to a dealer or otherwise, most of us will need to post these coins. Postage is a much higher percentage of value with smaller coins, so when you calculate your proceeds net of postage, it is more difficult to make a profit with the smaller coins. 

[Gildeon]

21 hours ago, HighlandTiger said:

Remember, coin collecting, just like stamp collecting is a dying hobby, kids are just not interested in things like this anymore, (and these are the people you have to try and sell too). You only have to look at the average ages of customers at stamp and coin fairs to see this.

I think that many new people come in as investors and turn to (partial or full) collecting gradually. Also the fact that they are mostly older people involved in this hobby, doesn't mean that young people today will not move to this, as the time passes. Tbh if you are young there are much more interesting ways to spend your money and you don't think too much about saving. 😏

[cravethatcoin]

On 12/05/2019 at 12:43, Lr103 said:

Since I purchased my first gold coin around 6 years ago, the only bullion gold coins that have done very well for me are the 1oz Queen's Beasts. At this point even some of the dealers will buy them back for a large premium and sell them for an even larger premium. I do wonder what will happen in the future, and it will be interesting to see if these premiums hold up. I can make an argument either way, and don't have a strong opinion  

My own anecdotal example aside, if I were looking to maximize return I would go with the 1oz size. While the market might be smaller, when you look to sell to a dealer or otherwise, most of us will need to post these coins. Postage is a much higher percentage of value with smaller coins, so when you calculate your proceeds net of postage, it is more difficult to make a profit with the smaller coins. 

This is the same situation for me. I purchased most of my 1oz Britannias at under £1000 spot so there is a little profit there but my QB (2 1oz and 3 1/4oz) on the other hand have done very well.

Like with anything I think it's best not to put all your eggs in 1 basket. Buy QB just in case but also have low premium gold as well.