Advice from the master yoda’s out there on first gold purchase

[kurama]

Hi all,

Looking for some friendly advice from the wise please... 

I’ve just sold my first load of silver coins in effort to buy my first gold bullion. I’m eyeing up a 1oz Brit but not sure if it’s the right first move into gold.

Any advice on the best way to start out would be awesome 👏 👌🏽 

Cheers in advance 

[HerefordBullyun]

Can't go wrong with sovs but niether can you wrong with Brits if you get premium membership you can check which is the cheapest by dealer for sovs or brits

[MancunianStacker]

Sovs. If gold price jumps up, Brits will be too expensive for many. Imho 

[Midasfrog]

I would buy bullion sovereigns for the same price as the 1oz Brit. much easier to sell plus the benefit of being able to sell in smaller lots 👍

Edited February 18, 2021 by Midasfrog

[HerefordBullyun]

3 minutes ago, Midasfrog said:

I would buy bullion sovereigns for the same price as the 1oz Brit. much easier to sell plus the benefit of being able to sell in smaller lots 👍

I'm with the golden Kermit 👍 on this

[dicker]

Three things:

 

One

I would go for a Gillick Sov (1957 - 1968).  They are to my eye at least, an attractive coin and can be bought as close to spot as any new Sovereign.

There are sometimes a few pricing peculiarities - just ignore that and go for coins that are close to spot (i.e. 1966 Sovs sometimes to be priced higher than other Gillicks - which makes no sense - the same often happens at Auction)

For me, bullion Sovs past around 2000 look deeply unattractive because of their colour and indistinct and mushy strike.

 

Two

Think about spreading out your purchases - google cost price averaging if you haven't heard of it.

 

Three

Enjoy owning whatever you buy - you are in a fairly exclusive club.  I started off stacking a long time ago, but developed an appreciation for collecting very specific coins.

 

Best

Dicker

[Coolsmp]

Sovereigns all the way baby!!!!!!!

[GBStacking]

Sovereigns will be the most liquid and as others have mentioned, it allows you to sell only a portion of your holding if you need\want to. However my first gold purchase was a 1oz Krugerrand. I'm unlikely to be worried about CGT any time soon and whilst i can appreciate a pretty coin, my heart is driven by pure bullion stacking. The 1oz Krug was the lowest premium 1oz coin i could find at the time so that was ultimately what sold me on that one.

[HerefordBullyun]

1 minute ago, GBStacking said:

Sovereigns will be the most liquid and as others have mentioned, it allows you to sell only a portion of your holding if you need\want to. However my first gold purchase was a 1oz Krugerrand. I'm unlikely to be worried about CGT any time soon and whilst i can appreciate a pretty coin, my heart is driven by pure bullion stacking. The 1oz Krug was the lowest premium 1oz coin i could find at the time so that was ultimately what sold me on that one.

Hatton garden metals are currently selling krugs just over 2.8% over spot. 

[GBStacking]

33 minutes ago, HerefordBullyun said:

Hatton garden metals are currently selling krugs just over 2.8% over spot. 

Don't tell me things like that! I've already spent my quota for the month! 😂

Edited February 19, 2021 by GBStacking
Pesky Typo

[Arganto]

It sounds boring but think about what you want from your metal. If you're going to aim to end up with a lot of it and it's purely to hedge your monetary 'worth' I'd recommend what the guys above have said; sovereigns and Britannias, with sovereigns having the bonus of costing the same or sometimes less and being more divisible/liquid should you have to sell. 

If you're not bothered about CGT (tax on profit from a sale, not the gross amount) then grab the best deals as they come. That Krugerrand deal for example is about as low as premiums get for gold bullion right now, 4-5% is currently about the lowest in most circumstances. Don't get too hung up on that though unless you're spending vast amounts of £s, as on a theoretical 1300£/poz there's less than £29 difference between 5% and 2.8%. Makes all the difference at scale but not so much if it's only a few ozs a year being bought.

 

Edited February 19, 2021 by Liam84
Bad math

[kurama]

Thanks for the advice everyone, you can't beat being given advice form people who have researched the nooks and crannies over a long period of time.

I am involved to make a profit, but certainly not the only reason. The metal itself, from the sexyness of some of the coins to poured piece of art - its all just fun to be owning such pieces really.

I've never considered Sovs, and after reading @dicker comment - I realise there's some good history to be aware of.

Interesting no-one has mentioned 1/4oz gold coins - is this premium just too high on these? I've got so say the 'Gold Standard' and the 'Lunar Rat' look simply awesome!

[Roy]

45 minutes ago, Liam84 said:

Don't get too hung up on that though unless you're spending vast amounts of £s, as on a theoretical 1300£/poz there's less than £29 difference between 5% and 2.8%.

'Spot' on! Too many folk get obsessed with this, same as 'ooh, spot has dropped £10..I must buy another tenth Britannia (and then pay £6.50 to have it delivered).

Edited February 19, 2021 by Roy

[Swampy]

1 hour ago, dicker said:

There are sometimes a few pricing peculiarities - just ignore that and go for coins that are close to spot (i.e. 1966 Sovs sometimes to be priced higher than other Gillicks - which makes no sense - the same often happens at Auction)

Guess this premium may disappear...

[dicker]

37 minutes ago, kurama said:

Interesting no-one has mentioned 1/4oz gold coins - is this premium just too high on these? I've got so say the 'Gold Standard' and the 'Lunar Rat' look simply awesome!

Premium plays a part for me - I just prefer Sovereigns - but its very much 'horses for courses'!

[Cornishfarmer]

I haven’t looked at 1oz pricing lately but queens beasts maybe £15 more.    3or 4 pints or a takeaway.   I’d spend the extra and have something nice to look at.    People get hooked up on premium but a few £ either way you’ll forget about in a week.       If you want to stack bullion go for sovs as easier to move on and not get attached to.      I maybe selling some gold in a few months because my wife wants to re do our house but it will be hard to part with pandas/nobles/ lunars but not sovs

Edited February 19, 2021 by Cornishfarmer

[kurama]

38 minutes ago, Cornishfarmer said:

I haven’t looked at 1oz pricing lately but queens beasts maybe £15 more.    3or 4 pints or a takeaway.   I’d spend the extra and have something nice to look at.    People get hooked up on premium but a few £ either way you’ll forget about in a week.       If you want to stack bullion go for sovs as easier to move on and not get attached to.      I maybe selling some gold in a few months because my wife wants to re do our house but it will be hard to part with pandas/nobles/ lunars but not sovs

Haha very true, off to McDonald's drive through shortly to pick up some lunch for the kids - there's goodbye to that premium saving! 😆 Those Lunars look awesome. Ox should be out soon, if not already.

[Pete]

1. It's all about margin over spot i.e. what you pay for your coin(s).
The margin over spot is quite variable to check carefully before buying and remember that 22 ct gold is not the same as 24 ct in your spot calculations.

2. When selling you can expect a price from any main dealer at spot less a couple of percent according to gold content
This is irrespective of the coin  - sovereign, Britannia, Krugerrand etc - it's pretty much all about the 999 gold.

3. The advantage of smaller value coins like sovereigns ( or even half sovereigns ) is you can always sell them privately if you need to raise some cash without unloading your full ounce coin.

4. There is something nice about a full ounce Britannia.
If your first experience of a gold coin is a sovereign or half sovereign you might be a little disappointed when seeing it's size.
You might even get the two confused and many people make the mistake when holding a full sovereign for the first time believing it to be a half sovereign so watch out.

5. If you have the option of buying a 24ct Britannia rather than the 22ct Britannia, choose the 24 ct as if selling back to a dealer, you will usually get a slightly higher price.
There is also the mental satisfaction in holding pure gold rather than 91.6% pure.

6. My first gold purchase was a 999.9% 50g bar which I was proud to show friends at the time.

7. Whether you choose sovereigns over 1 ounce gold coins the fluctuations in daily prices of gold will soon wash away any small differences in differential price so buy what you like and where you feel you are getting the best deal.

[Nugget]

I buy sovereigns and 1oz Brits 

Had a 2021 1 Oz Brit arrive today, lovely coin.  I'm expecting a couple of 2021 sovereigns in the next few days.  

If my purchase in the month is small, I tend to stick with Sovereigns.  But I will buy the larger 1 Oz coins a few times a year also.

I think having variety helps also, not only from a sales point but also keeps me interested.

I intend to drop a few 1/4 ounce Brits into the mix also, when my dealer has stock.

What are people's general thoughts on the % premium they are willing to pay for gold?  What's the max premium you would pay for generic stuff?

[kurama]

1 hour ago, Pete said:

1. It's all about margin over spot i.e. what you pay for your coin(s).
The margin over spot is quite variable to check carefully before buying and remember that 22 ct gold is not the same as 24 ct in your spot calculations.

2. When selling you can expect a price from any main dealer at spot less a couple of percent according to gold content
This is irrespective of the coin  - sovereign, Britannia, Krugerrand etc - it's pretty much all about the 999 gold.

3. The advantage of smaller value coins like sovereigns ( or even half sovereigns ) is you can always sell them privately if you need to raise some cash without unloading your full ounce coin.

4. There is something nice about a full ounce Britannia.
If your first experience of a gold coin is a sovereign or half sovereign you might be a little disappointed when seeing it's size.
You might even get the two confused and many people make the mistake when holding a full sovereign for the first time believing it to be a half sovereign so watch out.

5. If you have the option of buying a 24ct Britannia rather than the 22ct Britannia, choose the 24 ct as if selling back to a dealer, you will usually get a slightly higher price.
There is also the mental satisfaction in holding pure gold rather than 91.6% pure.

6. My first gold purchase was a 999.9% 50g bar which I was proud to show friends at the time.

7. Whether you choose sovereigns over 1 ounce gold coins the fluctuations in daily prices of gold will soon wash away any small differences in differential price so buy what you like and where you feel you are getting the best deal.

Quality post thank you @Pete, lots to take away.

[Bigmarc]

17 hours ago, kurama said:

Hi all,

Looking for some friendly advice from the wise please... 

I’ve just sold my first load of silver coins in effort to buy my first gold bullion. I’m eyeing up a 1oz Brit but not sure if it’s the right first move into gold.

Any advice on the best way to start out would be awesome 👏 👌🏽 

Cheers in advance 

Hi good post 

I am currently in the same position. Just wondering what route you took to sell your silver. Did you try to offload quick or get the most from it? 

I am attempting to make room for some sovs, so I am going to get rid of all my pre 1947, then some of the pre 1920s, should make enough to order my first 5 if I get a decent price. 

Did you price it up at spot? Under? Over?

Cheers bud

 

 

 

[kurama]

2 hours ago, Bigmarc said:

Hi good post 

I am currently in the same position. Just wondering what route you took to sell your silver. Did you try to offload quick or get the most from it? 

I am attempting to make room for some sovs, so I am going to get rid of all my pre 1947, then some of the pre 1920s, should make enough to order my first 5 if I get a decent price. 

Did you price it up at spot? Under? Over?

Cheers bud

 

 

 

I guess just market forces really, and a bit of luck! I bought a load NZ silver coins around 6 months ago, which was my entry into precious metals and I managed to sell them all this month making around £5 a coin. I sold some on eBay but most of them in person. 
 

The ratio of silver vs gold looked a good time to sell my silver and go for some gold imo 👍🏼
 

And I’ll treat myself to membership here too so I’m in for a shout for a good deal 😁

Good luck with getting your sovs 

[MadCityMatt]

So with gold the price it is per ounce is it even worth getting into it? I'd imagine there's no sense in investing in anything less than an ounce, right? 

[kurama]

When gold was at its peak recently what sort of price were the average  sovs being sold for?

I’m trying to find some historical price charts for sovs but can’t find any.

Cheers

[HerefordBullyun]

2 minutes ago, kurama said:

When gold was at its peak recently what sort of price were the average  sovs being sold for?

I’m trying to find some historical price charts for sovs but can’t find any.

Cheers

Look at the gold Oz price history and divide it by a 1\4 and you won't be far off maybe add 6% for premium