Bullion dilemma

[Mcb2007]

I started stacking on the advice of a friend of mine who has been doing it a while, I’m sat on the fence now that prices are increasing wether or not to continue buying bullion or dropping more on the side of semi numismatic coins. I have recently been buying low mintage coins paying a few pounds over bullion coin prices . To be honest I get more pleasure from them aesthetically than the brit, Krug,maple etc , is this a bad move in you opinion.

 

Edited November 16, 2021 by Mcb2007

[Stuntman]

Perhaps see if you can do both.

Stack bullion for weight, buying as well as you possibly can on price.
Collect the other coins that give you pleasure of ownership, and only sell these on if you really have to.

Whatever works for you is the right answer.  It's not always about the money...

[Pete]

I quote you - "I’m sat on the fence now that prices are increasing wether or not to continue buying"

You haven't experienced the highs and lows yet so a very very long way to go.
Unfortunately no-one has a time machine to predict future prices.
Potentially good upside in silver, gold seems a safe investment but PMs can change direction overnight so PMs are classed as fairly high risk.
 

 

[Mcb2007]

6 minutes ago, Pete said:

I quote you - "I’m sat on the fence now that prices are increasing wether or not to continue buying"

You haven't experienced the highs and lows yet so a very very long way to go.
Unfortunately no-one has a time machine to predict future prices.
Potentially good upside in silver, gold seems a safe investment but PMs can change direction overnight so PMs are classed as fairly high risk.
 

 

I didn’t mean stopping altogether just which way to go bullion or semi with the prices not being much different. In the long run the low mintage semis would be worth more because of the rarity or is that a trap I’m falling into in my naivety ?

You are correct I’ve not experienced the highs and lows as I’ve only been stacking / collecting for a couple of months. I was thinking 5-10 years before any proper benefit .

[KevinFlynn]

Do you have a plan on realizing the returns on your collectibles? Is there a market? Then by all means continue.

Don't cut out regular bullion though. Even if only diversifying over sub assets.

 

(In all honesty silver is producing unholy premuims these days, combined with VAT. Would diversifying into gold be an option for you?)

[Mcb2007]

6 minutes ago, KevinFlynn said:

Do you have a plan on realizing the returns on your collectibles? Is there a market? Then by all means continue.

Don't cut out regular bullion though. Even if only diversifying over sub assets.

 

(In all honesty silver is producing unholy premuims these days, combined with VAT. Would diversifying into gold be an option for you?)

I take your points onboard, regarding the gold it will be an option at some point in the next 12 months once the silver itch has been thoroughly scratched 😬 I’m only on 45oz at the mo. 

[LawrenceChard]

15 hours ago, Mcb2007 said:

I started stacking on the advice of a friend of mine who has been doing it a while, I’m sat on the fence now that prices are increasing wether or not to continue buying bullion or dropping more on the side of semi numismatic coins. I have recently been buying low mintage coins paying a few pounds over bullion coin prices . To be honest I get more pleasure from them aesthetically than the brit, Krug,maple etc , is this a bad move in you opinion.

 

 

13 hours ago, Mcb2007 said:

I take your points onboard, regarding the gold it will be an option at some point in the next 12 months once the silver itch has been thoroughly scratched 😬 I’m only on 45oz at the mo. 

From your first post, I assumed you were talking about gold, but that's partly because my age-old precious metal investment advice is to invest in gold, as it is mainly exempt from VAT in the UK and EU. 

To me it does not make much sense to invest in silver because ot the VAT Manufacturing costs are also relatively higher on silver than on gold.

I see from a later post that you were referring to silver.

It's always worth making it clear which, and it couls also be platinum, palladium, or even base metal coins you are stacking, or even bars.

Buy at the lowest premium you can within reason if it is for investment.

If you are collecting or stacking for pleasure, don't worry about the price, buy what you like and enjoy life.

There is much more investment "advice" on my / our Chards website.😎

[HillWalkerDundee]

That is indeed if you are holding silver for investment. Me, I am holding silver "just in case", for inheritance and, while I still breathe, for its beauty. I can't fault your strategy so far. Buy what you want but know why you are buying it.

[greektony]

Unfortunately as much as we all started off as Silver lovers (hence the forum name!) I don't see how with Brexit it makes sense for anyone based in the UK to stack silver over gold due to the VAT now applicable to our once favourite metal (silver that is!). Look at the spot price of Silver and then the /oz price Silver is sold at (including the for sale forum here), easily a 40%+ markup all in which is just insane compared to gold.

[ArgentSmith]

1 hour ago, greektony said:

Unfortunately as much as we all started off as Silver lovers (hence the forum name!) I don't see how with Brexit it makes sense for anyone based in the UK to stack silver over gold due to the VAT now applicable to our once favourite metal (silver that is!). Look at the spot price of Silver and then the /oz price Silver is sold at (including the for sale forum here), easily a 40%+ markup all in which is just insane compared to gold.

What sort of "mark up" can you sell gold for? People have to accept different premiums on different metals instead of expecting everything to go in the pot. Why don't dealers have available VAT free second hand Silver, it sells out double speed.  The answer is obvious dealers don't pay enough and don't charge enough for Silver bullion, otherwise there would be no shortage.

[Mcb2007]

2 hours ago, greektony said:

Unfortunately as much as we all started off as Silver lovers (hence the forum name!) I don't see how with Brexit it makes sense for anyone based in the UK to stack silver over gold due to the VAT now applicable to our once favourite metal (silver that is!). Look at the spot price of Silver and then the /oz price Silver is sold at (including the for sale forum here), easily a 40%+ markup all in which is just insane compared to gold.

I’m more in the put 20K in the bank for a year and earn interest if £1 or buy a coin for £28 and sell for £30 in a year , babysteps and all that jazz .

[CANV]

PM's are not considered a good investment for your average punter.  a nice safe well spread investment portfolio in an isa.  managed at maybe 1.5 per cent yearly fees will have served you far better over the years.

more so if you had been on the aggressive side of stock investments.   its easy, its fairly safe..  consider the fee what you would have to pay to store your PM's 

investing in any one asset class is high risk.   even if you consider it a low risk asset.   

day trading.. 90 per cent of people lose most of their money fairly quickly. especially the ones who make a lot to start with .  you are just guessing unless you have inside info  and even if you know enough to have a 60/40 advantage, one day a random event will wipe you out.

 

[Pete]

22 hours ago, Mcb2007 said:

I’m more in the put 20K in the bank for a year and earn interest if £1 or buy a coin for £28 and sell for £30 in a year , babysteps and all that jazz .

My strategy these days is to look for the deals in supermarkets.
If my usual breakfast muesli is normally £3.00 per box and there is an offer to buy at £2.00 I will buy say 10 boxes.
Normal cost of muesli  10 x £3 = £30
Actual cost £20
Saving of £10 on a purchase of £20 so equivalent to 50% instant benefit.
Even better with the NatWest offer in Morrisons ( just ended unfortunately ) giving a further 10% cash back in Reward Points.
Now that's what I call "stacking" !!

[Mcb2007]

1 hour ago, Pete said:

My strategy these days is to look for the deals in supermarkets.
If my usual breakfast muesli is normally £3.00 per box and there is an offer to buy at £2.00 I will buy say 10 boxes.
Normal cost of muesli  10 x £3 = £30
Actual cost £20
Saving of £10 on a purchase of £20 so equivalent to 50% instant benefit.
Even better with the NatWest offer in Morrisons ( just ended unfortunately ) giving a further 10% cash back in Reward Points.
Now that's what I call "stacking" !!

Stacking then major flushing ,with all that roughage 🤪

[Stuntman]

23 minutes ago, Mcb2007 said:

Stacking then major flushing ,with all that roughage 🤪

More bricking, than stacking...

[Pete]

1 hour ago, Stuntman said:

More bricking, than stacking...

Not quite -

"Bricking" is when you have just placed an order for a couple of ounces of gold and then the price crashes later that day.
"Stacking" is building up a wall of coins, bars or boxes of cereal.

[Mcb2007]

15 minutes ago, Pete said:

Not quite -

"Bricking" is when you have just placed an order for a couple of ounces of gold and then the price crashes later that day.
"Stacking" is building up a wall of coins, bars or boxes of cereal.

I think he meant the other meaning of bricking 😂 as in ,I was bricking it 🤣

[Centauri167]

On 16/11/2021 at 21:38, Mcb2007 said:

I take your points onboard, regarding the gold it will be an option at some point in the next 12 months once the silver itch has been thoroughly scratched 😬 I’m only on 45oz at the mo. 

If you only have 45oz at the moment, don't start with semi's yet and certainly not wit numismatic coins, just my 2 cents.

Maybe you can better buy a few kg's of 90% silver coins. ( junk silver/ constitutional silver )

 

Every order I place is in general 7O% regular BU coins like Krugs, 20-25% semi's like the Panda's, the Somalian Elephant, .. and 5 till 10% with higher premium coins like the Marvel series, Star Wars, ...

But my stack is growing since 2013 so my regular BU compartment is big enough to have some higher premium stuff.