What to buy...

[AdamG]

Hello lovely people,

I am currently wanting to invest in Gold, but I'm unsure as to what to get. My thinking is this; get a government minted coin so for me that's a Brittania. But, the size is what I'm unsure with, should I go for 1 1oz coin or 2 1/2oz coins, or something completely different, thoughts? Any advice would be greatly appreciated!

[Nugget]

Hi AdamG,

I suppose it depends on what you are investing for.  Are you collecting as much weight wise as you can as close to spot as you can, or are you a collector looking to invest in numismatic coins, with a view to flipping them for potential profit in the future?

I can't really help on the numismatic side as it's not how I approach my PM collecting.  But if like me, you are looking to acquire as much gold, silver, platinum, etc as possible without paying too higher premium for it, then Brits and Sovereign coins will be your bread and butter.

I like 1 Oz Brits as they are typically the coins I can get closest to spot price.  But I also buy Sovereigns, as they are easier to sell / cash out if needed.  Much easier to sell a coin in the £300 range than it is £1000+ (unless your heading to dealers).

The smaller the coin weight, the greater the premium over spot will be.  Hence a lot of people in UK collect sovereigns compared to 1/4 Oz etc.

As you are UK based, the two coins above will be better from a tax perspective also. 

I must add that the above is just my take on things and as always on forums, you will tend to get opinions based upon that person's personal preference 🙂

As always, do your research and buy what you like 🙂

[Coolsmp]

Sovereigns

[Mike1976]

If you buy the coins in smaller weights than the 1oz you’ll pay a slightly higher premium but if you ever find yourself in a position of needing cash the smaller weight coins will mean you can liquidate your gold closer to the amount of cash needed. No point selling 1oz of gold if you only need the value of 1/2 oz. Also the smaller weight coins give you a bigger group of potential buyers if you sell. 

[stefffana]

My personal advice is to go for sovereigns, for the reasons listed already above. Also, are easy so buy regularly one or more, depending on your budget, in time you can have fun swapping a long beard with a young head, a king with a queen, a short neck with a long hair, making a nice collection. Another plus for sovereigns, they are already blessed by St George's presence.😊

Good luck!

Stefan.

[Shep]

 

The one coin to rule them all - The Sovereign.

Use the search function, this has been asked and answered 5 million plus times.

[AdamG]

@Nugget Great advice there mate, thank you for the lengthy response I really appreciate it! 

@Coolsmp Short & sweet, thank you!

@Mike1976 Thank you for putting it that way I didn't really think about it like that, for me, the thinking was I've always wanted a 1oz Gold coin so I should go for that one. But gonna weigh up my options now! 

@stefffana Didn't know there are so many different Sovereigns about, cheers! I'll look into them

@Shep What makes the Sovereign ruler of all coins, I'm intrigued! 

[AppleZippoandMetronome]

When I was looking to get into gold in a much bigger way last year I followed the forums advice and heavily bought Sovereigns so I'll be another voice championing that. There is a decent variety of different ones out there so likely to be something for everyone and generally speaking they can be found with premiums that aren't silly.

[AdamG]

@AppleZippoandMetronome Okay, thank you for the advice! What made you go for Sovereigns over the other Gold coins?

[stefffana]

Just now, AdamG said:

@AppleZippoandMetronome Okay, thank you for the advice! What made you go for Sovereigns over the other Gold coins?

It was the British currency few centuries in all British empire. This made him the most well known all around the world. And is made to rule because from first strike on him is a king or a queen, not a buffalo/ eagle/ panda or something else.😊

[AdamG]

1 minute ago, stefffana said:

It was the British currency few centuries in all British empire. This made him the most well known all around the world. And is made to rule because from first strike on him is a king or a queen, not a buffalo/ eagle/ panda or something else.😊

Okay, so in a way it's a symbolic thing for you?

[AppleZippoandMetronome]

Just now, AdamG said:

@AppleZippoandMetronome Okay, thank you for the advice! What made you go for Sovereigns over the other Gold coins?

Premiums, mostly. There are some exceptions though - I do have a few gold coins where I didn't care as much about the premium as I really loved the coin. I also did my best when buying Sovs to look for the ones that were a bit more special but still had a relatively low premium. As such most of the Sovs I have are Canadian ones with a handful of Australia ones sprinkled in. I also managed to get some of the 2017 and 2012 ones for premiums one would expect best value Sovs to have had.

My preferred size coin is actually a half Sov but the premiums on those are usually much higher so I don't own as many. I think when looking at buying gold coins like this it is important to factor in how easily you can sell them down the line and how close to spot price you can buy them. Sovs are affordable given their size and they are very, very easy to sell on.

[stefffana]

6 minutes ago, AdamG said:

Okay, so in a way it's a symbolic thing for you?

I am not british, can't have for me a national symbolic value 😇, but in any country you will go will be well recognised. Even over border you can go everywhere having a necklace full of sovereigns and sovereign rings and bracelets like personal jewellery, without declaring them. But try to do this with 1oz Britannia coins😂

[Pete]

Sovereigns are what pilots used to put in cutouts in their boots in case they got shot down behind enemy lines and needed to trade for survival.
Internationally well recognised.

By "investing" in gold it's all down to the figure you wish to accumulate.
If relatively low and covered by 50 sovereigns or 100 half sovereigns then that's one plan.
If higher then maybe adding some 1 ounce coins like the 24 ct Britannia, Maple and many others makes sense if you can buy at low premiums.
Also 50g bars are rather nice.

All fine gold will sell instantly close to spot so liquidity is not going to be an issue.
My advice is to go for low premium and special offers and not pay inflated premiums just because the demand permits dealers and sellers to increase their prices.
When I started buying half sovereigns they cost exactly half a full sovereign but dealers saw an opportunity to charge more and get away with it.
They also inflate prices according to reign and let's not mention dealer prices for Victorian Shield reverse half sovereigns !

Shop around and even see if anyone on this forum is willing to sell if you set your target price.
Sellers will only get 97% or thereabouts for their gold from dealers so anyone looking to sell will most likely be happy to undercut the dealers and make it a win / win.
 

[TringSilver]

44 minutes ago, Pete said:

Sovereigns are what pilots used to put in cutouts in their boots in case they got shot down behind enemy lines and needed to trade for survival.
Internationally well recognised.

Didn't the SAS have Sovs or Kruger's in the gulf as well ? 

[HerefordBullyun]

55 minutes ago, TringSilver said:

Didn't the SAS have Sovs or Kruger's in the gulf as well ? 

Yes a majority of SF units get gold issued for bribing their way over the border if they are small patrols.

[TringSilver]

3 minutes ago, HerefordBullyun said:

Yes a majority of SF units get gold issued for bribing their way over the border if they are small patrols.

Yes I thought I remember reading about a few of them who managed to lose it 😁

[HerefordBullyun]

2 minutes ago, TringSilver said:

Yes I thought I remember reading about a few of them who managed to lose it 😁

all insured anyway - but im sure a chat with the RSM without cofee and biscuits will ensue.....

[AdamG]

3 hours ago, Pete said:

Sovereigns are what pilots used to put in cutouts in their boots in case they got shot down behind enemy lines and needed to trade for survival.
Internationally well recognised.

By "investing" in gold it's all down to the figure you wish to accumulate.
If relatively low and covered by 50 sovereigns or 100 half sovereigns then that's one plan.
If higher then maybe adding some 1 ounce coins like the 24 ct Britannia, Maple and many others makes sense if you can buy at low premiums.
Also 50g bars are rather nice.

All fine gold will sell instantly close to spot so liquidity is not going to be an issue.
My advice is to go for low premium and special offers and not pay inflated premiums just because the demand permits dealers and sellers to increase their prices.
When I started buying half sovereigns they cost exactly half a full sovereign but dealers saw an opportunity to charge more and get away with it.
They also inflate prices according to reign and let's not mention dealer prices for Victorian Shield reverse half sovereigns !

Shop around and even see if anyone on this forum is willing to sell if you set your target price.
Sellers will only get 97% or thereabouts for their gold from dealers so anyone looking to sell will most likely be happy to undercut the dealers and make it a win / win.
 

Great advise, thank you gives me something to think about!

My first thought was to go for Britannia, I don't have much Gold mainly Silver, I'm heavily Silver & trying to balance that out with some Gold coins but I know it will take a while as I have the all the Silver Queen's Beasts so far 2oz & 10oz just waiting for the last 2 10oz to come out, hopefully soon.

I've have a look into Sovereigns Vs Britannias, Thank you for your input mate!

[AdamG]

5 hours ago, AppleZippoandMetronome said:

Premiums, mostly. There are some exceptions though - I do have a few gold coins where I didn't care as much about the premium as I really loved the coin. I also did my best when buying Sovs to look for the ones that were a bit more special but still had a relatively low premium. As such most of the Sovs I have are Canadian ones with a handful of Australia ones sprinkled in. I also managed to get some of the 2017 and 2012 ones for premiums one would expect best value Sovs to have had.

My preferred size coin is actually a half Sov but the premiums on those are usually much higher so I don't own as many. I think when looking at buying gold coins like this it is important to factor in how easily you can sell them down the line and how close to spot price you can buy them. Sovs are affordable given their size and they are very, very easy to sell on.

Thank you, so it's a mixture of coins both based on premiums & wanted coins.  

[stefffana]

7 minutes ago, AdamG said:

Great advise, thank you gives me something to think about!

My first thought was to go for Britannia, I don't have much Gold mainly Silver, I'm heavily Silver & trying to balance that out with some Gold coins but I know it will take a while as I have the all the Silver Queen's Beasts so far 2oz & 10oz just waiting for the last 2 10oz to come out, hopefully soon.

I've have a look into Sovereigns Vs Britannias, Thank you for your input mate!

 I will give you an example, prices from Atkinsons now:

Today spot price: £1244.68/oz = £40.02/g.

   - 1 full sovereign 2021, price £317.24 : 7.98g at 22ct = 7.32g pure gold

£317.24 : 7.32g = £43.33/g, representing £40.02 + 8.4% over spot.

   - 1/4oz Britannia 2021, price £358.05, 24ct = 7.775 pure gold.

£358.05 : 7.775g = £46.05/g, representing £40.02 + 15% over spot.

   - 1oz Britannia 2021, price £1318.75, 24ct = 31.1g

£1318.75 : 31.1g = £42.40/g, representing £40.02 + 6% over spot.

Please, compare yourself. Mathematical, the number one is 1oz Britannia, followed by sovereign and far away is 1/4oz. But the difference of 2.4% is covered already by another advantages named before already.

All the best!

Stefan.

[Booky586]

I would avoid the 1/2oz sized coins to start with, 1oz and 1/4oz are the more commonly traded sizes. Try buying one or two of each and see if you have a preference, maybe a 1oz Britannia and a sovereign for comparison.

Don't limit yourself to any particularly type, variety is the spice of life. Happy collecting!

[Heirlooms]

9 hours ago, AdamG said:

I've have a look into Sovereigns Vs Britannias

I created a thread on this very question last year if you haven't seen it already (below). Hopefully there's parts that help

 

[AdamG]

22 hours ago, stefffana said:

 I will give you an example, prices from Atkinsons now:

Today spot price: £1244.68/oz = £40.02/g.

   - 1 full sovereign 2021, price £317.24 : 7.98g at 22ct = 7.32g pure gold

£317.24 : 7.32g = £43.33/g, representing £40.02 + 8.4% over spot.

   - 1/4oz Britannia 2021, price £358.05, 24ct = 7.775 pure gold.

£358.05 : 7.775g = £46.05/g, representing £40.02 + 15% over spot.

   - 1oz Britannia 2021, price £1318.75, 24ct = 31.1g

£1318.75 : 31.1g = £42.40/g, representing £40.02 + 6% over spot.

Please, compare yourself. Mathematical, the number one is 1oz Britannia, followed by sovereign and far away is 1/4oz. But the difference of 2.4% is covered already by another advantages named before already.

All the best!

Stefan.

This is a great way to look at it thank you! Does put it into perspective, appreciate it

[AdamG]

14 hours ago, Heirlooms said:

I created a thread on this very question last year if you haven't seen it already (below). Hopefully there's parts that help

 

Didn't know you had a thread about this, but I will be looking through it thank you!