£200 a month

[Mightymogs]

Hello, I'm new here.

I'm learning a fair bit from reading the past posts, but wanted your thoughts. I'm looking to spend upto £200 a month on either gold or silver. Coins seem to be the best investment due to tax. If you were in my shoes what would you buy and why. I'm looking to do this over the next 18 years. Thank you.

Edited July 13, 2021 by Mightymogs
Wrong section sorry

[badar]

I would personally get a full sovereign every 1.5-2 months. It’s 7.32g of fine gold and about £325 currently, also CGT exempt. You could go for 1/4 ounces too which is about 7.775g fine gold and around £373 atm. 
 

It’s better to go for full sovereigns as the premium will be lower per coin compared to other fractional. So more of your money goes into gold instead of the premium. Also sovereigns are the most liquid coins and you can almost instantly sell them anywhere. 
 

Silver you could invest in if you really like silver. However it needs a massive jump to even slightly cover premiums and vat, unless you manage to get pre 47 coinage at spot. You can still sell your silver at £25-30 depending on quality tbh but milk spots may take away the premium. 
 

I love silver and still buy the occasional coins I like, but personally my time of buying tubes after tubes is long gone. A lot of my stack was bought at £14.5-16 an ounce from the eu. The current silver rates need a steep jump to break even, so I’d only invest in it if you really like it or believe that spot will go way higher. 
 

Edit: forgot to add, these are my opinions and you should make an informed decision based on what you think is best for you. 

Edited July 13, 2021 by badar

[Norskgeld]

I buy half a sovereign or equivalent per month.

[Mightymogs]

Thank you guys 👍 It does seem that silver is hampered by VAT.  Although you would get a stacking feel good, due to size and weight for your money.

Premiums are obviously a big consideration for gold and I see that maybe the full sovereign route is better long term due to gold per investment price. Maybe I need to get a few Half Sovereigns first to satisfy my new found gold fever then swap to fulls 🤔

[Roy]

You could send me £200 every month and I will send you 4g of gold.

[TeaTime]

It's a tricky question with no right or wrong answer. In general when buying gold you are mainly reliant on the spot price rising to make money. There are exceptions when it comes to low mintage, desireable modern coins but even they can fall out of fashion. Generic gold will sell at a small premium over spot privately or less than spot commercially.

Historically silver coins can make larger gains and the spot price is not such a factor.

The big issue is when you come to sell. Are you selling a weight of precious metal or are you selling a collectable item ? If it's by weight then it's a coin toss as to whether gold or silver make better gains. If it's as a collectable item then silver has been shown to make better gains.

There are a lot of other commodities that could be better for long term investment but few that can satisfy that Scrooge McDuck feeling of owning something so desireable and shiny !

Think of it as wealth storage rather than an investment and you wont go far wrong...

 

 

[Fishface220]

I would go for a full sovereign every 2 months. Bank the change until you have enough for another one or you could grab a silver coin or two with your sovereign. 

[Mightymogs]

I'm quickly realising that there is no real right or wrong answer. I appreciate the input guys. Maybe a sov and some silver every two months. 

[TringSilver]

Have a read up on Chards and Atkinson's, they both have blog posts aimed at new investors and weigh up the pros and cons etc 👍

For me though, as others have said, I am not in silver at the moment as premiums are too high due to all of the hype. 

[Fishface220]

10 minutes ago, Mightymogs said:

I'm quickly realising that there is no real right or wrong answer. I appreciate the input guys. Maybe a sov and some silver every two months. 

Yeah, each to their own really. 

If premiums drop in silver and goes up on gold you can just switch it around to suit the times. 

[dicker]

Personally I would buy:

(1) A nice Morgan Dollar - its just a nice coin and just good to have one in your collection

(2) I would focus on Sovs close to spot.

Best

Dicker

[Shep]

Unpopular opinion incoming: Stay firmly away from silver. You’ll hold it for years and unless something magical happens you’ll possibly break even if you come to sell it.

If you’re purely wanting to preserve your wealth or as you say make an “investment” stick to low premium gold.

(All IMHO and apologies to silver stackers)

[dicker]

@Shep I do agree given the current tax situation.  But, I think there are silver buys that makes sense but they are numismatic rather than stacking.

I do not mean the modern RM stuff but hammered, Morgan’s, Georgian etc

Best

Dicker

[silenceissilver]

I would buy half a sovereign a month but that's only due to my impatience.

[Shep]

4 minutes ago, dicker said:

@Shep I do agree given the current tax situation.  But, I think there are silver buys that makes sense but they are numismatic rather than stacking.

I do not mean the modern RM stuff but hammered, Morgan’s, Georgian etc

Best

Dicker

Yes completely agree with you there regarding select numismatics.

I should have clarified in my post, I was speaking from purely the bullion stacking side of things for a newbie.

[dicker]

Just now, Shep said:

Yes completely agree with you there regarding select numismatics.

I should have clarified in my post, I was speaking from purely the bullion stacking side of things for a newbie.

Don’t worry, not a criticism at all.  Your post made me think, which is a very good thing!

I personally think Morgan’s are beautiful coins and for 30 quid you can buy a nice one to hold and admire.  But for me Gold with no tax just makes so much sense.  
 

All the best

Dicker

[MrTT]

9 hours ago, Shep said:

Unpopular opinion incoming: Stay firmly away from silver. You’ll hold it for years and unless something magical happens you’ll possibly break even if you come to sell it.

If you’re purely wanting to preserve your wealth or as you say make an “investment” stick to low premium gold.

(All IMHO and apologies to silver stackers)

Lucky i dont live in the u.k and can buy silver for a decent price 🤠🤠

[Nugget]

As above really.

Low premium gold is (in my opinion) the safest bet currently.

Like many others on the forum, all the silver I own was imported from the EU and spot was around £10/£11 last time I ordered (bar 3 handmade items I have purchased this year).  I won't pay the premium and vat on silver now, and won't go near anything silver proof as a longer term hold due to the issues silver coins can develop (which I believe will reduce their value).

I haven't purchased anything recently because I spent money on a new road bike (couldn't resist) and have just started work on my house, but will be starting up again end of the month with either a few sovereigns, or if I can stretch to it (subject to architect meeting Monday) a one ounce brit.

If you can purchase monthly/two monthly that's great, as price fluctuations will even themselves out over the longer term.

(All my opinion)

[GBStacking]

Just to add my input for what that may be worth, as a number of others here have said, save it and get a sovereign every couple of months. Easy to sell, not bad premiums, CGT exempt, easy to store (18 years is going to accumulate you a fair bit!) and you still get quite a bit of variation if you are getting a mix of old and new designs. Then if you have a bit of spare change, feel free to treat yourself to some Silver just cause some of the designs are really pretty. I've almost exclusively switched to gold now due to the VAT and other premiums, but i do still appreciate a beautiful design once in a while, i just don't expect to get my money back on them.

 

[dangelo]

Agree half sov/month or full sov every 2 months.  But unless you have firm control of your emotions and can resist shiny stuff, i bet you end up buying all kinds of gold and silver outside of your plan (evil laughter)

[Fishface220]

39 minutes ago, dangelo said:

But unless you have firm control of your emotions and can resist shiny stuff, i bet you end up buying all kinds of gold and silver outside of your plan (evil laughter)

Yes, this happens!!! (A lot!)

[Wampum]

It is always worth while having some literature, does not have to be a huge library, would start with Marsh for Sovereigns, and a COIN year book and Spink for an overall view.

Only reason is sometimes you can pick up something that has more Numismatic value, than the bullion price paid.

I would never rush a purchase as you always regret something without having thought it through. I have done this and more than likely 90% of people have.    

This is just something I do, however I have a Bank Account solely for metal, which I transfer monies into , and a cashback Credit Card.

I transfer monies in ,so I never overspend, pay by C Card (when you can, some places it has to be from Current account )pay off total on card, and get cash back at the end of year. 

Long winded however this means covered by C Card, and only it's details are used.

Best thing to do is collect what "you" like.