Alfred the Great

[Dazlenk]

Hi all, total newbie here so be kind lol. I've just started on the stacking/collecting journey and have managed to aquire a few tidy coins (I think) in the exceptionally short time that I've been doing this. A 2022 proof sovereign amongst them. My main aim is for long term investment, so buying and keeping for 20 or so years and then selling to realise a profit. I've seen a coin on the Royal Mint website which I like for it's own sake. The Alfred the Great, so, my question, would this coin be worth buying ftom an investment point of view, how can you tell which coins are worth buying since, as far as I'm aware Una and the Lion didn't sell out straight away, and that series has turned out to be something special. Whats to say that this coin won't also? just after a bit of advice. cheers.

 

[GoldDiggerDave]

I'd say buy what you like if you like it, the free market will decide it's future value.  I will hold my hand up to buying comemornve proof coins in the early days because it was a "special" release commemorating one anniversary or another.   The problem is they pump these like they are going out of fashion, and they ends up being next to zero secondary market demand. 

There are always exceptions to the fact, the great engraver series is getting loads of attention, Queens Beasts is another run that's done well and there's always some that go under the radar.  

I wish I bough the gold bullion Queens beasts when I had the chance, these bullion coins have had  30%+ in some case.   It's a safe hedge to buy collectable bullion at the start of the series if it does not gain any numismatic value then you still have the intrinsic value of the coin and only would have paid a small premium for the coin, likely by the end of the run gold has increased so it can be a win win.  

I bought a 1oz Gold Una and the Lion bar not a massive demand, and I'm happy to hold, I'm optimistic if they launch the 3 graces bullion bar product there my be a little more demand for the Una and lion bar.   

Best tip is to use your judgement and buy forwards not backwards.  Easy to look back and say that series has done well so you buy into it  and you will always pay more to play catch up. 

Edited November 27, 2021 by GoldDiggerDave

[Centauri167]

If you will buy 1 new golden coin and hold it 20 years, the change you made a mistake is almost zero.

But if you have doubts, only buy one or even none because it's important that you have a good feeling with your buy.

[TeaTime]

Short answer; NO

Royal Mint proof coins sell on the secondary market regularly for around bullion value. 

There are very few exceptions, even low mintage is no guarantee of future desirability (look at early silver Britannia proof sets - one of the more popular RM coins - as an example). Buy what you like but realise that the majority of RM proof coins will make you no discernable profit when it comes to re-selling and most will make a loss.

Couner-intuitively the coins with the biggest potential for real-term profit are currently base metal versions of popular designs.. and that is wholly dependant on popularity which can change in a year or two let alone 20.

For investment purposes i would always recommend buying high quality numismatic coins over modern proofs.

 

Ebay 'sold items' is a fantastic resource for any budding investor speculator.

 

Edited November 27, 2021 by TeaTime
yo ho ho and a bottle of rum

[Dazlenk]

Hi all, thanks for taking the time to the reply. So from an investment point of view, is it best to buy gold bars and coins rather than silver? (thinking about the vat) and I suppose the bullion versions of the coins are the best (cheapest) but the bars are cheaper again?  As far as buying high quality numismatic coins is concerned, how could someone like myself learn which coins fall into this category and which don't? I'm all for reading up on a subject so if anyone would like to recommend some books that would be great. Thanks again.

[TeaTime]

What you collect / stack depends on how you are planning to dispose of your shiny stuff when the time comes. If selling in batches privately then coins will always carry a higher premium than bars. If selling to a dealer then you will get equal to or less than spot price for most stuff (even proof coins).... If you are planning to rely solely on the spot price making you a profit then the cheaper the better - second hand silver like damaged coins / poured bars / cutlery etc would be the way to go.

If you want to hedge your bets then established series low(ish) mintage silver bullion coins will have a selling premium over and above the silver value. Perth Mint coins are a good example (Kookaburras, Koalas, Wedge tailed eagles etc). As long as there are new collectors each year then there will always be a demand for older releases (to complete collections).

As for historic numismatic coins, looking at graded/slabbed coins will give you an idea of prices/grades/popularity. I wouldn't class anything less than 50 years old as numismatic - but that's my opinion, others may disagree. The best way to gain knowledge would be to make friends with a local coin dealer and perhaps purchase a coin yearbook to give you an idea of scarcity/prices.

P.S. Log-in to the RM site on a regular basis - they have (very) sporadic sales where they reduce the price of proof coins. I have managed to get a couple of Britannia proofs at half price in the last couple of years. Often, shortly after a sale they are back to full price on the site.

[TheShinyStuff]

Hi, welcome. Firstly, the Alfred coin - not for me. Buy it if you like it, but if it makes you a profit in the next 10 years I'll double it for you. (Up to a fiver!!!)

Seriously though, @stefffana has done a couple of good, considered posts regarding making long term profits from silver. They are worth a read.

Good luck whatever you choose.