Which way to go..

[silverorgold]

Hi fellow TSF members, I have been reading this forum for some time but this is my first post. I am looking for some thoughts and opinions on which way to go in Silver. Generic bullion, "fancier" stuff or proof coins.

I am mid 30s, have decent equity in my house and a moderate shares PF  (which i didn't want to add anymore to) and a small pension+SIPP, I was looking at where else to invest my capital (between £500-£1000 a month) - which led me to PMs.

To date I have 125oz of Brits, x4 1kg bars (StoneEX pre brexit), x2 10oz QBs, x1 10oz una and x10 1oz una, also have 1 and 2 1/4 gold brits - cos they are shiny 🤗🤗 All have been bought from the main online dealers. My plan is to continue with my purchases for as long as I can afford to do so - no kiddies as yet - and hold for the mid to long term (short of crazy spike in price) as I plan not to need the capital.

So my question is what do fellow stackers/collectors think will give the best return? Proofs or bullion?

From reading on here the proofs may be a little more specialist in knowledge - which i don't yet have, so i would just be buying them based on mintage alone. Seems risky?

So bullion, do you just go for the cheapest per oz - so the brits or bars or will the "fancier" collections QBs etc etc bring a greater return further down the line? I can see why the lower mintage stuff could attract a premium (hence why I went for the Unas) but the 2 10oz QBs were a higher premium and as they are ungraded will they just end up being sold/bought as bullion in say 10/20 years time? 

 

Thanks in advance for you replies 😁

 

 

 

[Pete]

Welcome to the precious metals addicts club !

In terms of investment for the long term I ask what what I do in your situation having got some experience so to say.
PMs are just another diversification in a portfolio but what types of returns are likely in the future ?
If you are paying income tax then you can invest in a SIPP, which you say you already have, and recover your tax.
That is an almost instant big gain and possibly more than you may see in 10-20 years in PMs.
If your SIPP invests in good quality funds then on average you will also see about 6% compounded growth per annum which over a long period accumulates significantly.

As for PMs I would steer clear of high premium proofs because many never retain their value - there will always however be a few exceptions as illustrated by the latest Royal Mint issues like the Three Graces. Look for bargains in bullion silver coins like Britannias, Maples, Eagles, Libertads, Philharmonics and anything coming out of the Australian Perth Mint etc and maybe consider some gold sovereigns if you can get any at less than 5% over spot. Queens Beasts in silver and gold are very popular but the earlier coins are becoming expensive.

Buy from this forum as you will likely get the best deals.

[silverorgold]

Hi Pete. 

Thanks for that. My issue with putting more/everything into a SIPP is just the longevity of it and not having the access in the event its needed. I am currently a limited company director so while I can add into SIPP from my company and save the CorpTax I am not sure it's what i want to do. When I eventually take an employed position (which might not be long as i thought) I think I will start adding to it and take the higher rate relief.

I think as you say i'll leave the proofs alone and stick to the simple stuff. Interesting that the earlier QBs are becoing more expensive, no guarantee the current newer ones will do the same tho i guess..

[CaptCaveMan]

Your alot further ahead @silvergold I'm a beginner.. only 5 oz of Brits to-date.

I'm in my mid 40s and with teenagers so currently have less capital to invest however the LTV is reducing quickly and with 30+ yrs pensioned already, most final salary.

My aim is to build up an extra pot for the kiddies so will be focused on Britannia's and the odd Sovereign.

[Yetiwatch]

I think with generic silver it will follow spot price a lot more, however the proof pieces will raise or fall depending on demand and are therefore not supported to the same degree as the generics.

I would put most in generic and then when you find a proof series or design you like or think will retain or gain value, go for those.

[HillWalkerDundee]

5 hours ago, silverorgold said:

Hi Pete. 

Thanks for that. My issue with putting more/everything into a SIPP is just the longevity of it and not having the access in the event its needed. I am currently a limited company director so while I can add into SIPP from my company and save the CorpTax I am not sure it's what i want to do. When I eventually take an employed position (which might not be long as i thought) I think I will start adding to it and take the higher rate relief.

I think as you say i'll leave the proofs alone and stick to the simple stuff. Interesting that the earlier QBs are becoing more expensive, no guarantee the current newer ones will do the same tho i guess..

Silverorgold

I would have thought that one obvious solution would be an ISA. Both SIPPs and ISAs are taxed. The ISA at the beginning (after tax is invested but profits are not). The SIPP is tax free at the beginning but the income at the end, when you come to use it, is taxable. Given that today's tax is known (particularly, as a Director, you take the bare minimum to avoid N.I. and pay yourself in dividends (reduced tax)) then I would suggest that an ISA is a better tax wrapper than a SIPP.

[silverorgold]

59 minutes ago, HillWalkerDundee said:

Silverorgold

I would have thought that one obvious solution would be an ISA. Both SIPPs and ISAs are taxed. The ISA at the beginning (after tax is invested but profits are not). The SIPP is tax free at the beginning but the income at the end, when you come to use it, is taxable. Given that today's tax is known (particularly, as a Director, you take the bare minimum to avoid N.I. and pay yourself in dividends (reduced tax)) then I would suggest that an ISA is a better tax wrapper than a SIPP.

Hi HwD.

Thanks for your reply. I have an investment ISA (which is actually worth more than my SIPP) which is why I am content with exposure to the stock market. I have also looked at property again but I’ve been burnt in the past. Also looked into crypto but I’m not convinced.. not at these levels anyway. Which led me to PMs. I like the idea of building a PM stack for the future and that added piece of mind.

[HillWalkerDundee]

41 minutes ago, silverorgold said:

 

Dont get me wrong, i love silver, more so than gold, to me it is a thing of beauty. I suppose the lifetime ISA does give tax relief at both ends.

[Gordy]

Back to topic... i would go good quality standard bullion such as Brits and maples, good to look at as well as a good investment for the future and if it takes your fancy some queens beasts to add to the collection side of it but purely for investment bullion is better and stay away proofs unless you get a good price....

[Yetiwatch]

Also worth pointing out with silver it can go milky and that would drastically reduce the value of a higher end piece, whereas with generic bullion it wouldn't do too much.

[Alex944]

Personally I would stay clear from the majority of bullion silver unless you can get a good deal, perhaps here on the forum. The premiums at the moment just don't make it worth it in my situation. I feel that gold is a better buy at the moment, so perhaps considering adding some sovereigns or bullion 1/4 oz's could be an outcome. You can still add silver with the remaining budget if you so please.

In terms of liquidity, bullion grade silver will almost always sell here if the price is right, so that's likely your safest bet in terms of investment stacking and waiting for a time to sell. Some of the proofs or special edition coins at high premiums are more often than not worth it in terms of holding their premiums. Makes it more risky but could be huge potential as we've seen with the recent 3 Graces release.

 

[Roy]

What you should look out for is 'Vintage' bullion silver. It's basically the same as today's bullion silver except that because it's old (vintage) it's worth more (think '60s Rolex 😉).

It won't milkspot and the more toned, rougher looking it gets, the more people seem to like it.

I think it's possible that you could sell it for more than spot in the future.

[StackemHigh]

I'd stay well away from the royal mints products unless old sovereigns or cheap as chips gold bullion.