Buying sovereigns monthly.

[Blueged1]

I’m new here and got a couple of 1 oz gold coins ( really nice) couple of sovs ( bit underwhelming) and the ‘seven’ 1oz coins in silver. Having trawled lots of posts on here, it seems the best way to stack pm is go for gold, to avoid vat and space, probably sovs as they are easy to offload and relative low premium. My budget is around £350 per month so thinking of getting 1 sov per month. I then started looking into collecting different heads, proof, unc, bu etc and that’s when the costs get silly. Also I see grade b coins but to be honest Im not particularly bothered if the coins are scratched / worn etc after all they are really old coins! At the end of the day I suppose it’s just gold and when cashed in by my kids 😀 , they will only get close to spot so probably best for me to buy it as close to that as poss as I’m ‘investing’ rather than ‘collecting’. I see a few dealers do a lucky dip - best value coins so thinking about that too, anyone go that route, was wondering do you get different heads etc as it might make the hobby more interesting but keep costs down?. Of course this forum seems great for buying sovs tho you have to be quick. 
Any advice or opinions welcomed.
ged

[pricha]

I think most people start off as investors and end up as collectors . You say prices get silly buying proofs etc , but that's where prices have risen quite substantially over the past few years. So long term , a better investment could be £700 on a numismatic coin rather than buying two run of the mill bullion coins ? On the over hand, this could be just another asset bubble class  in the everything bubble. If/when the bubble bursts , numismatic coins could fall in price while gold bullion coin you would expect to rise.  For you i would certainly buy bullion for a year or so then see how it pans out . You'll probably get the bug. 😄

[Shep]

I like to try and buy a bullion sovereign at least once every two months as a minimum. It gives me the thrill of a purchase (as sad as that sounds) with the bonus of saving my money.

 

1 hour ago, Blueged1 said:

I see a few dealers do a lucky dip - best value coins so thinking about that too, anyone go that route, was wondering do you get different heads etc as it might make the hobby more interesting but keep costs down?.

Ive found that if you buy the “lucky dip” options, 7/10 you’re getting a George V sovereign. I think sovereigns are pretty unique in their semi numismatic properties which does keep it interesting. The variety is just so vast, especially when you start getting down to Queen Vic’s die numbers etc.

I’ll probably be labelled a blasphemer and be cast out of the forum for saying this but I really enjoy buying post 2000 non special year bullion QEII sovereigns and seeing my stack of them grow. Just a nice pile of boring, stackable, cgt free crown gold bought with no numismatic premium.

Whilst compared one on one to a one ounce coin a sovereign may seem lame, they sure look and feel nice when there’s 20 or so stacked up in a tube.

 

Edited May 17, 2021 by Shep

[CaptCaveMan]

Not a blashemer @Shep, that's exactly my thoughts also.

Very new to stacking and have a few ounces of silver but I'm currently focused on Sovs due to the premiums, currently aiming at 1 per month.

Am I fussed - no as these are to be gifted to the kids, a tube of 25 each would go a nicely towards a deposit later down the line or some other bump in life's road.

[Jvw]

8 hours ago, Blueged1 said:

I’m new here and got a couple of 1 oz gold coins ( really nice) couple of sovs ( bit underwhelming) and the ‘seven’ 1oz coins in silver. Having trawled lots of posts on here, it seems the best way to stack pm is go for gold, to avoid vat and space, probably sovs as they are easy to offload and relative low premium. My budget is around £350 per month so thinking of getting 1 sov per month. I then started looking into collecting different heads, proof, unc, bu etc and that’s when the costs get silly. Also I see grade b coins but to be honest Im not particularly bothered if the coins are scratched / worn etc after all they are really old coins! At the end of the day I suppose it’s just gold and when cashed in by my kids 😀 , they will only get close to spot so probably best for me to buy it as close to that as poss as I’m ‘investing’ rather than ‘collecting’. I see a few dealers do a lucky dip - best value coins so thinking about that too, anyone go that route, was wondering do you get different heads etc as it might make the hobby more interesting but keep costs down?. Of course this forum seems great for buying sovs tho you have to be quick. 
Any advice or opinions welcomed.
ged

 

I started with bullion sovereigns (still buy them) as I like stacking. They are easy to buy and easy to sell. I decided to try and get different bullion years from 1838 to now (minus the really rare ones obviously). I try and buy them close to spot as possible. And I've done that a very long time as there are so many of them and they are widely available. But a couple years into stacking I decided to also move towards the premium sovs and other coins. It went naturally and now I am at a point that spending a bit more a numismatic coin once in a while is completely okay. Whiles in the past I could worry way to much about spending a hefty premium on a specific coin. 

Mind you: I still stack and collect bullion sovereigns also.

[Pete]

When I started my collection of sovereigns and half sovereigns you had little choice of sellers.
Typically HGM or BullionbyPost who's just flipped their daily inventory paying little to no attention to the era of their stock.
One price and often 3% or even less over spot !

Today is different.
More suppliers, TV advertsing, and these once literally scrap bullion dealers have become "coin shops" seizing the opportunity to add hefty premiums to some of their intake whilst only paying scrap value to sellers. The random lucky dip or best value deals are unlikely to give you anything but basic coins i.e. gold as they will have employed someone to filter their inventory and try to make some higher profit. Whilst I have no problem with this I do dislike that these same dealers make zero allowance when buying your coins knowing they will sell for sometimes twice the price you are being offered.

[dicker]

Keep tour eye out across a range of stores.  
 

Baird have recently been selling what appeared to be a large stock of 1957 and 1959 Gillicks which are the lowest mintage of that series of pre-decimal coins.  Premiums were not too bad and they were in very very nice condition - to my eye, well into the MS60’s

[Bars]

Tbf on the lucky dips I got a nice 2002 jubilee sov from Atkinsons and a Isle of man from Sharps Pixley. Both sell for a nice premium above spot, especially the isle of man.

[GoldDiggerDave]

A sovereign per month is a very good retirement strategy.  

[Roy]

Buying sovereigns regularly is a foolproof plan. Buying monthly perhaps not so because of postage, maybe 3 sovs a quarter?

Buying sovereigns to gift to your kids is not a good idea but I've already been put in my place for that opinion.

[Bars]

Buy a sovereign a month using the lucky dip/best value option and you end up with a nice collection of coins that have numismatic value/decent premium at the end of the year. When I started stacking at the end of last year I thought about buying a different monarch every month. But by letting the dealer choose you get that anyway and its cheaper! Now I have a decent haul of sovs. Gillicks, Millenuim sovs, Specific year designs, all from the lucky dip! Tbf the miellenium sovs where chards minty coins but still I didnt specify a year. 

[Nugget]

I agree with the regular monthly purchase 🙂

Then use them however you see fit (retirement / legacy and so on).

 

[MickB]

If you're after Queen Victoria sovereigns then Sharps Pixley have the young head, jubilee head and veiled head in stock at the moment.

[27carrots]

Taking an average of the last 50 years, the gold content of a sovereign should go up £2.25 a month on average and so it's probably better to just buy one every payday rather than save up to buy in bulk.

[Elements]

Hattongardenmetals currently offer 8 months free storage. After several purchases over several months you just pay a single post fee to have them delivered

[KevjustKev]

Almost doing that, however keep an eye on things like 1/4oz Brits. Sometimes can work out a little less per gram

[Hunter87]

https://harringtonandbyrne.co.uk/2021-united-kingdom-gold-sovereign-5469.html
 

This is a very good price currently.

[Foster88]

On 21/05/2021 at 18:19, 27carrots said:

Taking an average of the last 50 years, the gold content of a sovereign should go up £2.25 a month on average and so it's probably better to just buy one every payday rather than save up to buy in bulk.

I’m not sure the gold content of a sovereign goes up. 🤔

Maybe it’s worth, value or spot price.

[SidS]

Just imagine if the gold content of a sovereign went up 2.25 lbs every year... 😲