Complete Noob in need of help

[Dee]

So apparently it's called being a "stacker"?

 

I'm looking to invest in Silver Coins - I appreciate it's about maintaining wealth, especially over the long term, and if/when our economic system collapses.

From what I know, I ideally want to start off with sovereign coins, as I'm guessing they'll be easier to part with if necessary in the future?

Is that correct so far? 

 

I'm looking to buy around 1 coin a month, for now - But I've seen different coins at different prices. Surely if I'm looking at this totally as a storage of wealth, I'm better off looking for the cheapest sovereign coins available? 

 

Any tips?

[Janine2020]

Hi Dee

I am in the same boat as you. And actually just down the road!

I will be keeping an eye on your thread.  

[cornishrich]

Hey Dee welcome to the forum. It's a truly amazing place loads of info and help on here. Pretty new myself so can't really comment to much on this. The way I do it (probably not the right way lol) is pick up bits I like and if needs be a can always move them on again if I'd like to buy something else. With sliver is seems cheaper buying bigger than 1oz plus storage after a while will take up a lot of space cheers Richard 

Edited June 28, 2020 by cornishrich
Edit

[Tn21]

A Sov a month sounds good, and at the cheapest possible price is 👌. Buy it from a good source which can also include this forum. 

 

Good strategy if you ask me. 

Fellow forums member has built up a comparison site.

http://goldprice.eu5.net/

 

Edited June 28, 2020 by Tn21

[Pete]

You might want to start reading about silver and gold coins, watch some Youtube videos and read many of the very interesting posts in the various sections of this forum.
Do this before you make any purchases as you don't want to fall into any traps.

Just be careful - and if you are going to start buying silver coins familiarise yourself with the most common and popular coins.
Before you buy any maybe enter a request in the UK trade section.

Lastly - sovereigns I am sure you know are 22 carat ( 91.66% gold ) gold coins and will cost about £360 each at the moment or a lot more depending on the supplier.
For the same amount of money you could buy about 20 x 1 ounce silver coins.
A sovereign is about the size of a one pence coin and to a new stacker might be kind of scary relating what's in your hand, hoping you don't drop it and loose it in the pile of your carpet, to what you just paid for it.

[Dee]

10 minutes ago, Pete said:

 

Just be careful - and if you are going to start buying silver coins familiarise yourself with the most common and popular coins.
Before you buy any maybe enter a request in the UK trade section.

Lastly - sovereigns I am sure you know are 22 carat ( 91.66% gold ) gold coins and will cost about £360 each at the moment or a lot more depending on the supplier.
For the same amount of money you could buy about 20 x 1 ounce silver coins.
 

No, I did not know the precise percentage haha!

 

I actually came here from a YouTube video, but the one thing I've assessed, is to try and buy the more popular and known coins - i.e. start with something government backed.

 

I think I'll definitely look into a request - And then I'll officially be a (small) stacker!

[HawkHybrid]

I vote start slow and starting with bullion sovereigns.

 

HH

[Dee]

25 minutes ago, cornishrich said:

Hey Dee welcome to the forum. It's a truly amazing place loads of info and help on here. Pretty new myself so can't really comment to much on this. The way I do it (probably not the right way lol) is pick up bits I like and if needs be a can always move them on again if I'd like to buy something else. With sliver is seems cheaper buying bigger than 1oz plus storage after a while will take up a lot of space cheers Richard 

Personally I'm just going to sit on it (not literally!), And buying and selling will definitely be something I won't be able to do until I become more experienced. 

 

But plan is to use my spare cash at the end of payday (It's literally £70 a month). £50 of it goes on coffee and other little luxuries, and the remainder will be for one coin a month. 

 

I think it'll take me years before I'll be running out of space!

[Dee]

Just now, HawkHybrid said:

I vote start slow and starting with bullion sovereigns.

 

HH

Good advice - I think the next question is where do I buy the cheapest ones 😂

 

Or more specifically, what should I be looking to pay over spot? 

[Dee]

40 minutes ago, Janine2020 said:

Hi Dee

I am in the same boat as you. And actually just down the road!

I will be keeping an eye on your thread.  

Haha! 

Lockdown has gotten me thinking about the things I should be thinking about!

[Pete]

@Dee - I am a tad confused when your opening gambit is you want to invest in "Silver Coins" then jump straight into sovereigns.
What is it ??

As for buying gold, try to get for less than 5% over spot.
Check the spot price regularly as it fluctuates by the second.
A new sovereign typically weighs 8 grams ( 7.98 min ) and therefore contains 7.3 grams of gold.
Calculate spot value by multiplying the published spot price per gram by 7.3 then add 5% to obtain your target price.
Don't forget that most sellers would post using special delivery costing around £7 in addition.
When the market is hot prices can be higher but in normal times you can often find a seller on this forum selling at spot price which no dealer will do.

[5huggy]

 

@Dee, @WotNxt, @cornishrich

 

@HawkHybrid , @Tn21, and @Pete

 have given some very sound advice 👍

 

Just to let you know,

I am/have been "tasked" with collating a post that will be specifically for "Newbies"  to glean information from,

especially aimed at the sort of questions that NEW PEEPS ask! 

Keep eyes peeled - 😉🧐

It will be within the next couple of days and it will be added to the User Guides section 

 

 

[Dee]

On 29/06/2020 at 05:22, 5huggy said:

 

@Dee, @WotNxt, @cornishrich

 

@HawkHybrid , @Tn21, and @Pete

 have given some very sound advice 👍

 

Just to let you know,

I am/have been "tasked" with collating a post that will be specifically for "Newbies"  to glean information from,

especially aimed at the sort of questions that NEW PEEPS ask! 

Keep eyes peeled - 😉🧐

It will be within the next couple of days and it will be added to the User Guides section 

 

 

I look forward to reading it!

 

I made my first purchase - Bought four coins. 

 

A Chinese Panda, an Australian Kangaroo, a Britannica, and a Canadian Maple Leaf.

 

Spent £93.38 including shipping,  but I'm now officially a stacker!

[SBrit20]

Sounds more like 3 silver coins and an encyclopedia 😂 Good starting selection though, i started with some Brits and Roos a few months ago and havent looked back!

[Pohaku]

@Dee 

Think the initial confusion was using the word 'sovereign' in your initial post. I know what you meant, although a 'sovereign' refers to a particular UK gold coin as others mentioned above. I assume that you were referring to silver coins that were also minted as a currency, by a National mint, etc.

With silver coins you need to consider the 'spot' price of the metal itself (currently around £14.50 per ounce) plus the 'premium' on top of that which is essentially the cost of getting the metal, melting it, making into nice shiny coins, and distributing - this is why a one ounce coin won't be for sale at £14.50.  Then there is the 'numismatic' value, which refers to another type of premium based on the desirability of the coin among collectors/buyers.

a) So one ounce of pure silver, in isolation, should cost £14.50.

b) A generic one ounce silver coin with no particular collectible value seems to currently be available for around £20 (or spot + 38% premium)

c) A rare, perfect condition one ounce silver proof coin from a hundred-odd years ago might cost (these figures as an example only) £50 (or spot + 245% numismatic premium)

Stackers like to buy (b), collectors like to buy (c), and everyone would like to buy (a) but generally can't.

There's loads to it, I'm new to it myself - the buy/sell pages will give you an idea of roughly what stuff should cost.

To answer a couple of the specific questions you ask though:

The generic coins (what I think you meant by 'sovereign') that you're best looking at are: silver Brittanias, Canadian Maple Leaf, Krugerrand, Philharmonics, and maybe American Silver Eagles.  I'm sure there are others but these seem to be the most common, and usually have the lowest premiums at traders. They're popular & common and so have little numismatic premium (though some years did have low mintages, which would change this fact, but that's one to read up on.)

Where to buy - the forum selling threads are first stop, as you're likely to find some nice deals and won't have to wait long for delivery if the seller is also here in the UK with you. If you do buy from online traders, don't buy silver from UK-based dealers as you have to pay VAT.  There are European dealers from whom you can buy without paying UK VAT. I don't really study tax law, but I understand that this is totally above board and isn't the same as 'avoiding tax'.  Obviously, the delivery charge would make this a bad deal for small purchases, usually between £9 and £12 (in my experience) for a small package.

The general advice here seems to be to avoid eBay unless you are very confidant in the seller. there are plenty of fakes (less so with silver than gold, but still) and the seller will be paying eBay fees on the sale. This means that they are making enough on the sale to cover those fees, and so you're likely to pay over the odds. Of course, there ARE reputable sellers and good deals on there too, but just tread carefully.

[littlesilvervw]

On 29/06/2020 at 00:11, cornishrich said:

Hey Dee welcome to the forum. It's a truly amazing place loads of info and help on here. Pretty new myself so can't really comment to much on this. The way I do it (probably not the right way lol) is pick up bits I like and if needs be a can always move them on again if I'd like to buy something else. With sliver is seems cheaper buying bigger than 1oz plus storage after a while will take up a lot of space cheers Richard 

i have been stacking for nearly a year now and i am starting to find that problem, especially if you have coins in cases. i have seen various suggestions for storage ranging from plastic tubs from home bargains to a metal case for poker chips. i don't think there is anything wrong buying items you like, just keep an eye on the premiums and shop around. i have a few pieces  i know i will never sell, but the main thing is have fun with it. i have bought a few floating frames to display some of the coins as it seemed a shame for them to be boxed up.

[LawrenceChard]

On 13/01/2020 at 17:29, Jamesstott93 said:

Hi guys just looking for some advice, I have a chocolate tin full of old coins from old one pence to half pence, six pence, do you think they may be of interest to members of the forum? Most of them are British from the 18th century I have no used or interest in them, do you guys think they may be worth listing for sale?

 

 

3 hours ago, SilverDrum said:

@Dakarasis a man of his word, he didn't send me a jar of farts!

I am making a collection of all the butts of the Silver forum. Awaiting my graded "One Pence" from @GoldDiggerDave, and i'm keeping an eye out for the next milky dogs from @HerefordBullyunto complete the unholy trinity! Next i will need a tray to place these on...

 

 

On 09/01/2022 at 18:33, SilverDrum said:

In for a penny, in for a pound... i've joined the club and ordered! 

I once had a T-mobile contract for ONE PENCE a MONTH!!! They made a website error, saw someone share on bookface..they honored the contract and i kept it for a fair while just paying 1p a month  think they upped the price on renewal so i ended it eventually. 

 

On 29/06/2020 at 00:22, Pete said:

You might want to start reading about silver and gold coins, watch some Youtube videos and read many of the very interesting posts in the various sections of this forum.
Do this before you make any purchases as you don't want to fall into any traps.

Just be careful - and if you are going to start buying silver coins familiarise yourself with the most common and popular coins.
Before you buy any maybe enter a request in the UK trade section.

Lastly - sovereigns I am sure you know are 22 carat ( 91.66% gold ) gold coins and will cost about £360 each at the moment or a lot more depending on the supplier.
For the same amount of money you could buy about 20 x 1 ounce silver coins.
A sovereign is about the size of a one pence coin and to a new stacker might be kind of scary relating what's in your hand, hoping you don't drop it and loose it in the pile of your carpet, to what you just paid for it.

Being pedantic as usual, and in defence of the English language, I feel compelled to point out that "one pence" is an oxymoron, and a grammatical error.

One penny...

Two pence...

The singular of pence is "penny"

Don't feel too bad about it though because a high proportion of people make the same mistake.

😎

[James32]

1 hour ago, LawrenceChard said:

 

 

 

Being pedantic as usual, and in defence of the English language, I feel compelled to point out that "one pence" is an oxymoron, and a grammatical error.

One penny...

Two pence...

The singular of pence is "penny"

Don't feel too bad about it though because a high proportion of people make the same mistake.

😎

Look after the pennies and the pence shall take care of themselves 😁

[LawrenceChard]

13 hours ago, LawrenceChard said:

Being pedantic as usual, and in defence of the English language, I feel compelled to point out that "one pence" is an oxymoron, and a grammatical error.

One penny...

Two pence...

The singular of pence is "penny"

Don't feel too bad about it though because a high proportion of people make the same mistake.

😎

Although:

A "One Pence" coin.

(By popular demand).

😎

[SidS]

22 minutes ago, LawrenceChard said:

Although:

A "One Pence" coin.

(By popular demand).

😎

Oh look another of those 1983 error coins. I guess that's what a double struck penny looks like! 😁

[Vini]

My strategy is buying only 1oz bullion coins. Nothing fancy, metal matters - just to keep wealth "under my mattress".