What is a good premium for a gram of gold?

[Silvs]

Hello, 

Quick question here. I am new to this and have noticed the premiums on gold seem to be a lot higher than the premiums for silver. Would what be a reasonable/good premium to pay for a gram and for an ounce of gold? There are deals going for grams of gold that 33% over spot or a tenth of an ounce for over nearly 20% over spot. It does seem over the top on first viewing but I could be wrong.

[GoldElliott]

Generally silver has much higher premiums than gold in the UK. This is due primarily to VAT- at a spot price of £12 or so you could expect to pay around £17/oz of silver (42% premium).

For gold premiums are much lower- for an oz of gold at spot of £1375 you could expect to pay exactly spot on here for it or about 3-5% at a dealers depending on the coin, dealer etc. Sovereigns generally have the lowest premiums and as such I prefer them to smaller .999 gold such as 1/10, 1/4 etc.

1g gold bars always have a substantial premium and are more used as gifts than serious investments due to the high premium and difficulty in recouping this money on a sale. I bought 1g gold bars for around £43-45 when spot was about £39- I haven't bought any since the increase in price so wouldn't know what a good price is now, however id hazard a guess at around £50 or so.

[Silvs]

4 minutes ago, GoldElliott said:

Generally silver has much higher premiums than gold in the UK. This is due primarily to VAT- at a spot price of £12 or so you could expect to pay around £17/oz of silver (42% premium).

For gold premiums are much lower- for an oz of gold at spot of £1375 you could expect to pay exactly spot on here for it or about 3-5% at a dealers depending on the coin, dealer etc. Sovereigns generally have the lowest premiums and as such I prefer them to smaller .999 gold such as 1/10, 1/4 etc.

1g gold bars always have a substantial premium and are more used as gifts than serious investments due to the high premium and difficulty in recouping this money on a sale. I bought 1g gold bars for around £43-45 when spot was about £39- I haven't bought any since the increase in price so wouldn't know what a good price is now, however id hazard a guess at around £50 or so.

Thank you for your response, there is one online now for £66.10! That seems too much even for a novice like me - good to know they are more seen as gifts than investments. What is the typical premium on fractional gold such as a tenth of an ounce? I've yet to make my first purchase (gold or silver) and I'm finding it difficult to know what to do here.

[GoldElliott]

funny, after i replied I just came across someone on facebook selling 4x 1g bars for £200- im just using this as an example to show that they can be picked up about £50 each as I suspected. £66 is too high.

1/10oz can be picked up on here for £5-10 over spot usually. At the moment premiums on everything are a little higher as the dealers don't have supply and are closed.

 

 

[Silvs]

1 minute ago, GoldElliott said:

funny, after i replied I just came across someone on facebook selling 4x 1g bars for £200- im just using this as an example to show that they can be picked up about £50 each as I suspected. £66 is too high.

1/10oz can be picked up on here for £5-10 over spot usually. At the moment premiums on everything are a little higher as the dealers don't have supply and are closed.

 

 

Ah, is it worth looking at the likes of twitter for this kind of thing?

Just for absolute clarity, do you mean 5-10% or £5-10? Because that seems really cheap!

Yes it is difficult at this time, you don't want to overpay but don't want to miss out on any potential PM rush either. I may just just buy 1 or 2 ounces of silver on the next group order and then sit and wait. 

 

[GoldElliott]

If you keep an eye on the UK and Europe for sale part of this forum you'll get a good idea of prices. I personally have paid £5-10 over spot for 1/10 oz on here before. e.g. if spot was £1200 then £125-130 would be a reasonably price to pay for bullion 1/10oz. At current perhaps you could expect to pay slightly more, but I wouldn't go much higher than that.

Facebook often has good deals- can't speak for twitter. Only trouble with facebook is there are a lot of timewasters- here has much better and more reliable people.

The group order is a good way of getting cheap silver.

[Silvs]

1 minute ago, GoldElliott said:

If you keep an eye on the UK and Europe for sale part of this forum you'll get a good idea of prices. I personally have paid £5-10 over spot for 1/10 oz on here before. e.g. if spot was £1200 then £125-130 would be a reasonably price to pay for bullion 1/10oz. At current perhaps you could expect to pay slightly more, but I wouldn't go much higher than that.

Facebook often has good deals- can't speak for twitter. Only trouble with facebook is there are a lot of timewasters- here has much better and more reliable people.

The group order is a good way of getting cheap silver.

Thanks for that - its interesting because the spot is way higher than that on most websites, even accounting for the higher prices now. 

[TheApe]

Can I ask whey you are buying a gram of Gold.

Its a really bad quantity to be purchasing.

[Silvs]

18 hours ago, TheApe said:

Can I ask whey you are buying a gram of Gold.

Its a really bad quantity to be purchasing.

Tbh it's because its gold is pricey, I'm new to this and don't have major amounts of money. I was unaware of the premiums on 1g of gold when I posted this. 

[Foster88]

You will pay a much higher premium for 1g if gold as you now know. Generally with gold, the more you buy the better price you can get. 

So whilst a bar might be 1g, if you save and say buy a full sovereign for example, you’ll pay a little less for the gold content in a sovereign.

But of course only if your budget allows. Good luck with whatever you decide to buy.

[Foster88]

On 01/05/2020 at 13:06, Silvs said:

Tbh it's because its gold is pricey, I'm new to this and don't have major amounts of money. I was unaware of the premiums on 1g of gold when I posted this. 

If you’re not already aware, this is a great resource:

http://goldprice.eu5.net/

Also becoming a premium member you can get some good deals from other members on this forum in the trading section.

[AndrewSL76]

I agree with @Foster88 that you should become a member on here as you will gain access to the first three days of sales listing. There are some excellent deals to be had here. Most of the best deals are taken within a few hours of being listed.

Also, if you are going to buy for investment, I would suggest you hold that £40-50 you want to spend on a 1g Bar until you have enough to buy a sovereign or if you can wait (!) a 1oz coin. If you are not patient then go for a half sovereign or perhaps some 1/10 coins. All these are posted for sale on this forum regularly and you can build up a nice stack quickly.

Welcome to the forum!

[TheApe]

On 01/05/2020 at 13:06, Silvs said:

Tbh it's because its gold is pricey, I'm new to this and don't have major amounts of money. I was unaware of the premiums on 1g of gold when I posted this. 

I dont see any point in buying 1g. You are instantly losing too much value. 

Personally, I would never buy less than a sovereign, which has about .235 of an oz. Even then I mainly buy 1oz.

[Silvs]

5 hours ago, TheApe said:

I dont see any point in buying 1g. You are instantly losing too much value. 

Personally, I would never buy less than a sovereign, which has about .235 of an oz. Even then I mainly buy 1oz.

Thanks. You would avoid 1/10 Oz then? 

[TheApe]

3 minutes ago, Silvs said:

Thanks. You would avoid 1/10 Oz then? 

No, Id save until you can get at least a sovereign. 

1/10 oz will be high premium and very underwhelming in terms of size.