Absolute beginner - Where to start?

[Coverte]

28 minutes ago, HawkHybrid said:

edward VII, george V sovereigns etc are cgt free. why do you believe other non currency

cgt free coins will change their cgt free status when there is a monarch change?

 

HH

 

Yes, I would like to think the exemption remains, in fact, as legal tender, it legally has too I'm sure; hence my purchases now focus more on those.

Although with the UK government having printed (pro rata to GDP) more money than anyone else globally, they're desperate to grab more tax revenue, so who knows, but I'm quietly confident they will tinker with IHT instead; which is another abonimation we have to endure, and/or go to some lengths to mitigate that obscene double death duty taxation...... 

[SidS]

1 hour ago, Dragonfly said:

How long will the BOE allow current legal tender to remain in use after the Queen pops her clogs?  For me the growing likelihood of this event presents them the perfect opportunity to then tax all us stackers.  

Why should the Queen dying affect legal tender status of coins? Sure the banknotes may get changed over somewhat more rapidly and the older ones pulled from circulation, as is the way with banknotes.

Coins though? They last decades, even more so if they're NCLT. The only time coins are culled and removed are if the design of the coin changes radically, be that a resize or a reshaping (£1 coins - where the old ones were heavily faked).

George VI florins were an everyday occurrence up until June 1993 - a full 41 years after his death.

Edited September 5, 2021 by SidS

[Bigmarc]

2 hours ago, Dragonfly said:

When we are discussing 10, 20 or 30 year investment perspectives in relation to coins of our realm being CGT free since legal tender, the elephant in the room for me is that Maggie aint guna live forever.  How long will the BOE allow current legal tender to remain in use after the Queen pops her clogs?  For me the growing likelihood of this event presents them the perfect opportunity to then tax all us stackers.  

Ive been thinking this for quite some time. I feel if they were to do this, it would be phased in rather than a blanket change. That's why I feel it's important to keep records and proof of purchase.

[paulmerton]

I would have thought the eventual eradication of physical cash would be more a more likely trigger than a change of monarch.

Then the only people making money will be the legal vultures on the TV ads.... "Were you mis-sold CGT-free bullion? Claim now!"

[Minimalist]

8 hours ago, HerefordBullyun said:

Maggie was the queen of @Minimalist's heart just like Liz and Queen Nicola! 😉

[Midasfrog]

On 03/09/2021 at 10:16, ashr said:

Really appreciate the advise guys. I'm looking at starting with Queens Beasts (as suggested), Britannia (just because they're the UKs standard coin?) and maybe Kookabura's (I work in Australia, and I like the look of them).

Standard prices for Britannias and Kookaburas (obviously depending on the year) seem to range from £25 - 35.

As a first purchase, would you recommend buying the 2021 Britannia from the Royal Mint at £24? ... I do intend on keeping these coins for 20 years... I'm 32, I'm interested in the "FIRE movement" and want to retire at 50.

Have you thought about collecting any gold ? twenty years ago 1oz of gold was £185 today that same 1oz is £1320 (+ 610%)  , compared with silver twenty years ago 1oz was £2.69 and today that same 1oz is £17.88 ( + 480% ) 

Probably worth collecting both 👍 

 

[ashr]

8 hours ago, Midasfrog said:

Have you thought about collecting any gold ? twenty years ago 1oz of gold was £185 today that same 1oz is £1320 (+ 610%)  , compared with silver twenty years ago 1oz was £2.69 and today that same 1oz is £17.88 ( + 480% ) 

Probably worth collecting both 👍 

 

Thanks I've looked at those stats previously and have thought about collecting gold too - I just feel as an absolute beginner, silver would be the stepping stone onto gold.

[Bigmarc]

36 minutes ago, ashr said:

Thanks I've looked at those stats previously and have thought about collecting gold too - I just feel as an absolute beginner, silver would be the stepping stone onto gold.

Is for most of us, depending on your budget it goes from a enjoyable hobby to a commitment. I naturally progressed into gold but after many years of collecting silver. I've only recently started stacking at a 60 to 1 ratio and to be honest it was just more of a tidy up 

[dicker]

I would also suggest that a Morgan Dollar would be a good start.

Beautiful coins with a great deal of history - many fakes on eBay - I would suggest buying on the forum or from a dealer.

I would also suggest getting one in MS condition if you can - rather than one that has been used excessively.

Best

Dicker 

[HawkHybrid]

6 hours ago, ashr said:

I just feel as an absolute beginner, silver would be the stepping stone onto gold.

I vote bullion gold sovereigns.

it is one of the most forgiving for beginner error.

 

HH

[27carrots]

On 03/09/2021 at 11:34, ashr said:

Thanks - Probably out of my league at the min as a set of QBs would be well over £500? and she's probably wanting to sell them as a set...

I'm just looking to dip my toe in the water, spend maybe £100-200 on a few now and then more at a later date

I'd probably alternate between buying a half sovereign and a batch of 4-6 silver coins each time you want to buy.

You have the best chance of getting your money back easily with a half sov if you have to sell at some point.

Silver coins need more looking after so I'd avoid premium silver in the beginning.

Edited September 6, 2021 by 27carrots

[ashr]

12 hours ago, 27carrots said:

I'd probably alternate between buying a half sovereign and a batch of 4-6 silver coins each time you want to buy.

You have the best chance of getting your money back easily with a half sov if you have to sell at some point.

Silver coins need more looking after so I'd avoid premium silver in the beginning.

Thanks, I appreciate the advise. I didn't even think about "looking after" them. Can they not just be carefully stored and left alone for 10+ years? haha

[iacabu]

I wouldn't worry about using silver as a stepping stone to gold. You needn't have experience in one to get the other. 

Gold can be bought in 1g bars so cheap enough (although higher premiums at this level). Otherwise look at 1/10th Brits, which fit with the budget you suggested earlier.

Sovereigns are also a god bet, but a little more money. Much closer to spot price though. 

For £200, a 1/10 gold britannia and a couple of 1oz silver brits would give you a nice start

Edited September 7, 2021 by Iacabu

[Stacktastic]

On 05/09/2021 at 13:51, Dragonfly said:

When we are discussing 10, 20 or 30 year investment perspectives in relation to coins of our realm being CGT free since legal tender

I dont think legal tender factors in as you cant buy a lot with it unless the buyer understands what they are looking at & can somehow value it over fiat. 
If someone wanted to buy my house with bullion then i would jump at the chance, especially if the price was in a decent dip (ie £1000 / ounce). 
Can you imagine a small monster box of 1oz queens beasts!! Wait for spot to explode and offload them at 3x the price. 
I sometime imagine I am @LawrenceChardor some of the stacked up members on here, but alas I only have a tiny little box of SOV's.

Capital gains removal - now that would be an issue, but I cant see that happening. 

On 05/09/2021 at 23:20, Midasfrog said:

Have you thought about collecting any gold ?

Exactly. Your have said silver is a stepping stone, but its a pain in the ass to store and it can develop milk spots etc. 
I tend to offload most my silver when spot goes up and buy gold instead - especially in that squeeze thing. 

While the spot is on a pull back just get yourself a sovereign or two. 
You can hide them anywhere, they will remain pristine forever (literally)
Fabulously liquid - everyone knows what a sovereign is especially asians and council estate chavs
I still thnk gold is priced quite high & can easily get back to £1,200 or below, but I don't care and will continue to buy on the dips over a 20 year period. 
Thats the main thing I have learnt actually - try not to get sucked into the panic 'ah I need to stack now'. 
Yes by all means get a decent initial amount as you never know (eg my queens beasts sets last year) but look at it in Decades rather than years. 

Take a trip to Costco or this is who I have bought mostly from this year - (free insured delivery too): 
https://www.sharpspixley.com/buy-bullion/buy-gold/buy-coins/2021-sovereign-elizabeth-ii-gold-coin 

Bairds have a great bulk selection if you have enough capital.

 

Edited September 7, 2021 by Stacktastic

[LawrenceChard]

1 hour ago, Stacktastic said:

I sometime imagine I am @LawrenceChardor some of the stacked up members on here, 

 

Have you been talking to my wife? 😎

[stefffana]

As a beginner, you must see first what is the most suitable for you, to decide if you are stacker or collector.

My advice is to buy random coins at the lowest premium on the forum to discover yourself what you like: Britannia, Kangaroo, Kookaburra, Philharmonic, Noah Ark, Eagle, Krugerrand, Pre20, Pre47, 925, etc. If you are buying them cheap, it is still possible to recover your money when you want to sell if the spot price will increase in the future.

After you will feel the taste, you can decide easier what you like.

If you want to be mostly collector, be prepared for a higher premium and a lot of disappointment when you want to sell and be prepared for good explanations for your wife. 

Regards,

Stefan.

Edited September 7, 2021 by stefffana

[spencerfrater]

2 hours ago, Stacktastic said:

Take a trip to Costco or this is who I have bought mostly from this year - (free insured delivery too): 
https://www.sharpspixley.com/buy-bullion/buy-gold/buy-coins/2021-sovereign-elizabeth-ii-gold-coin 

They're out of stock... as it seems are most dealers right now?

[pricha]

I got rid of all my 1oz / 2 oz silver as storage was a pain. I also noticed some were starting to tarnish. I still collect the odd 10oz  , they are quite awesome . I prefer pre 1920 sterling for the history and i'm not bothered about any tarnish on them (in fact it's quite good ) . But it's gold sovereigns for me for a retirement plan . The idea of selling hundreds of oz silver , 1 oz at a time ( to get the best price ) fills me with dread. 

[paulmerton]

I'm still not entirely sure what the difference is between a stacker and a collector. The two terms seem almost synonymous for some people.

[LawrenceChard]

3 minutes ago, paulmerton said:

I'm still not entirely sure what the difference is between a stacker and a collector. The two terms seem almost synonymous for some people.

That's a great question.

I wonder if we will get a definitive answer.

🙂

[Gordy]

1 minute ago, LawrenceChard said:

That's a great question.

I wonder if we will get a definitive answer.

🙂

i stack my collection, and will only stop when my mattress hits the ceiling and i can no longer get into bed 😂

[Bigmarc]

I buy the metal regardless what the coin looks like, some say stacker, others say collector. Personally I prefer pikey. 

[HawkHybrid]

1 hour ago, paulmerton said:

I'm still not entirely sure what the difference is between a stacker and a collector. The two terms seem almost synonymous for some people.

 

imo a stacker holds quantity and a collector holds pieces of a story.

an important difference is when it comes to exit strategy. stackers can offload in bulk by weight

with the price determined mostly by spot. collectors have more individual items to sell, maybe

as part of a set or organised historic representation.

price determined by weight = stacker

price determined by appearance = collector

 

HH

Edited September 7, 2021 by HawkHybrid

[SidS]

I'm definitely a collector.

[27carrots]

On 07/09/2021 at 07:18, ashr said:

Thanks, I appreciate the advise. I didn't even think about "looking after" them. Can they not just be carefully stored and left alone for 10+ years? haha

These would cost £200 if they were in perfect condition (check in 3 days). If you don't keep them somewhere dry with silica gel this is always possible.

If you buy the cheapest bullion it won't matter near as much if they tone/spot/corrode.