Best buying method now for selling later

[MickB]

My new year resolution was to buy a 1/4 ounce gold coin every month and carry on whilst it's affordable.

After my fourth one I looked at the price against a 1 ounce gold coin and would have made a saving if I had waited & saved the money to purchase the 1oz.

This would save me money now but would it turn out to be harder to sell a 1oz later when the price would go up?

I did wonder that in the future, bullion dealers would be reluctant to buy up larger sizes that they may struggle to sell on if the prices were to rocket.

This doubt is holding me back from buying a 1oz but costing me more at the same time in carrying on with my smaller monthly purchase.

[Kman]

Doesn't help answer your question really but

 

I did wonder that in the future, bullion dealers would be reluctant to buy up larger sizes that they may struggle to sell on if the prices were to rocket.

 

If prices are high, demand is high, so no problem selling to a dealer at all. 

[HelpingHands]

Yep dealers will take bars far larger than anything we are likely to have.

The advantages of small coins is that you can sell in smaller increments and may resell at a greater % of profit if you're buying something collectable.

[mr-dead]

Why not buy sovs instead of 1/4 oz.  Roughly the same weight, low premium and highly liquid.

[watchesandwhisky]

Honestly I don't think you will ever have problem selling an ounce of gold even if the price rose to 20,000

[Danny-boy]

Honestly I don't think you will ever have problem selling an ounce of gold even if the price rose to 20,000

Completely agree.

[Paul]

Honestly I don't think you will ever have problem selling an ounce of gold even if the price rose to 20,000

 

 

As someone who bought a lot of stuff through the 2011 highs.  Sentiment was mostly you had to buy now as the next stop was £50oz and beyond and the ponzi scheme starts to unwind

 

Absolutely no shortage of buyers at all in 2011 and market/forums was more active & positive than it is now even at the nearest bargain giveaway prices of today 

 

No fundamentals that pushed it to the 2011 highs have changed and we are in a whole worse shape now 4 years on 

[watchesandwhisky]

I can imagine the buzz back then, When I started was roughly Feb 2013 so off the peak.. But still people buying hand over fist and plenty of "to the moon & back up the truck" type posts.

 

Any time we get back to £18+ per ounce there will be a whole massive buzz again:) and people not regretting buying more at the bottom willing to buy more then, new people to the market ect, a feeling that "This is it! - This is the big one and I don't have enough silver yet!"

[MickB]

Thanks for the replies as I will now at least aim for a 1oz gold coin this year.

The difference in price in buying four 1/4 ounce compared to 1oz is around £150ish dearer with the smaller ones. Had a quick look on BBP.

Suppose I could still spend the same amount of money, buy the 1oz and also a 1/10oz and end up with more gold overall:-)

[watchesandwhisky]

Yep the postage on individual coins will be really killing the deal - all the small coins will have £8 built into the asking price for special delivery and I dont know if you order there but BBP is very expensive, Check out hatton garden metals or the bullion center. If you cant personally walk into a place and buy small coins at a few% over spot then saving for the oz will be the better idea. Though if spot rises then maybe not..lol.

[sovereignsteve]

The investment sentiment cycle is the same no matter what market you consider. This goes from totally bearish, gloom and doom pessimism, up and up, to totally bullish optimism "the sky's the limit", bubble blowing and then crash.

It's not difficult to see where you should be buying and selling. Contrarian investing pays.

[watchesandwhisky]

Whilst silver is still high against its 2000 lows I think that the peaks been knocked of enough to make it an excellent buy, Some think it will go back to 5$ per ounce, I'm not so sure..The worlds a changed place, Vastly more connected and social media is far greater than it was back then, a power that cant be ignored.

 

All that said it really is a no lose investment if like myself your in the "id only piss it up the wall if i did not by PM" camp

 

Sure there is other investments I could choose to put my saved money into..but jumping on the stocks and shares band wagon with no experience and after years of strong performance would seem like a bad move.

[Pipers]

My new year resolution was to buy a 1/4 ounce gold coin every month and carry on whilst it's affordable.

After my fourth one I looked at the price against a 1 ounce gold coin and would have made a saving if I had waited & saved the money to purchase the 1oz.

This would save me money now but would it turn out to be harder to sell a 1oz later when the price would go up?

I did wonder that in the future, bullion dealers would be reluctant to buy up larger sizes that they may struggle to sell on if the prices were to rocket.

This doubt is holding me back from buying a 1oz but costing me more at the same time in carrying on with my smaller monthly purchase.

 

MickB You may want to watch this, its about buying 1/4oz of Gold a month

[mrwebb697]

Good vid,hits the nail right on the head

[Pipers]

Yeah mrwebb I thought it was a good video too

[Paul]

Any ideas why youtube videos not show up for me anymore?

 

Everything used to show & load

Ad blocker is disabled but still doesn't show up.

 

Any ideas techy guys ?? 

[watchesandwhisky]

I get it too, for me removing the letter S from the "https" in the search bar fixes it.

[Paul]

Fixed ! thanks MH

[Cornishfarmer]

I can't see on computer but ok on iPhone

[doogs]

Really liked the video. Puts some things into perspective.

[watchesandwhisky]

Yep, just sat down and watched it properly and its very good.

[MickB]

Good video Pipers, some good points made on it.

[Guest]

What many stackers do not remember with fractional bullion is that broadly the premium goes with the coin. There are exceptions like hgm which is a bargain for fractionals when available but from what I see 1oz is the hardest to sell for a good premium at auction and 1/10th the easiest followed by 1/4 then 1/20 then 1/2 then 1oz. There are less buyers per coin for 1oz and margins will be much closer to spot.

Much less chance of making a profit on a flipped 1oz unless metal price rises substantially.

[mr-dead]

On the flip side of above if you have a large number of fractional coins you will either have to piece them out on forums/ebay to retain the premium which may take a significant amount of time and effort or get a spot based offer from a dealer that probably wont take in to account its a fractional.

 

Sovs/ 1/2 sovs get around this due to be fractional in size with 1oz sized premiums, easy to off load to a dealer in bulk if needed.

[Guest]

There is an argument that says if you are in this position you are making the wrong investments and have an unbalanced portfolio.

Most advisors say that 20% or so of wealth can be in pm. So it should be possible to liquidate proportionally across asset classes.