Advice for a newbie

[WinstonSmith]

Hi All,

I'm taken aback by the level/breadth of discussion here, and wondered if anyone had advice for a newbie.

I've toyed with the idea of buying gold/silver for a while. I'm not a collector, or rich, just want to hedge my bets against a market crash, in a modest way.

If you were in the UK with say £1k, what would you buy and where from?  I'm not looking for maximum gain, collectables etc, just if the economy went t*ts up (looking at China, big banks), what would be good to own?

Looking to make an initial purchase of £1k worth and add to it each month, any advice welcome.

Thanks in advance.

[ChrisSilver]

Welcome to the forum.

Lots of members like Gold Sovereigns, for their low premiums and relatively low cost per coin (compared to buying larger coins such as 1oz gold coins for example) they are very easy to sell and sell quickly when priced well on the forum as there is good demand for them in the secondary market.

I hope this helps  

[WinstonSmith]

Appreciate your reply, thanks.  Was a bit worried I'd come across as paranoid, but reading some of the other threads, it seems hedging your bets against fiat is quite common, not just buying for collecting sake.

I don't mind admitting I know nothing about precious metals. What are your thoughts on Silver? My initial thought was spread any risk across the two metals.

[Gordy]

Its a hard one to give advice on this one as members have their own preferences on gold or silver but if its a mixture i'd maybe try a couple of sovs at around the £330.00 mark ish on here and add a tube of silver 1oz Brits for £565.00 ish but that will take you up to the £1200.00 mark.. or the BRITS and 1 sovereign to start you off and then when you get the bug you will generally get a feel on what you prefer in regards to gold and silver and as Chris said the sovs are a good buy and easily sold on if you need a quick sale

[Agaumac]

27 minutes ago, WinstonSmith said:

Appreciate your reply, thanks.  Was a bit worried I'd come across as paranoid, but reading some of the other threads, it seems hedging your bets against fiat is quite common, not just buying for collecting sake.

I don't mind admitting I know nothing about precious metals. What are your thoughts on Silver? My initial thought was spread any risk across the two metals.

Welcome to the forum Winston 

Just got to be aware that silver here in the UK is subject to VAT and coins/ bars will carry a premium over and above that. At today’s spot price of 16.80 ish you can expect to pay between £22 and £24 per ounce for bullion silver and higher for more sought after coins. You should be able to resell here on the forum for similar but if you need to realise capital quickly I’m afraid dealers usually only offer within a few percentage points of the day’s spot price.

Thereafter it’s just down to personal choice. Sellers here on the forum will always state the prices and usually include several photos. Premium membership allows you to see adverts straight away without having to wait 3 days - all the good stuff gets sold quickly. Best of luck with whichever route you take.

[Sovstacker]

Sovereigns are the most prestigious bullion gold coins in the world.

[James32]

My two pence worth, take both @Gordy and @ChrisSilver advice buy a tube of brits and 1 full sovereign to start with then keep adding a sovereign every month ( if affordable) and a tube of coins every four months ( go without the sovereign on months 4/8/12). 

 

[Seasider]

You could start with one of these but read the thread so you know what you might be in for with H&B.

[WinstonSmith]

Thanks all, really good advice, and it's much appreciated.  Will continue to read up and take a look at some of the older threads too.

All the best.

[BiigT]

my advice would be to buy 3 x young head shield sovs. they hold more value (in bullion) than the more recent sovs and there is a chance you could find a rarer type from an unknowing seller. I buy mine from the coin cabinet or coins of the realm auctions. both are 0% commission to the buyer and I've found them reasonable in terms of cost with my last 3 being around £330 each (one of which has an overstrike). Sovs are very easy to move, but the bullion goes for what its worth plus a v small premium. Silver has higher premiums which drives a bit of competition amongst sellers.

[WinstonSmith]

Thanks @BiigT I'll look into them too.

[ArgentSmith]

https://atkinsonsbullion.com/gold/gold-coins/sovereign-gold-coins/pre-owned-uk-full-gold-sovereign-mixed-dates

[WinstonSmith]

@ArgentSmith I was checking out their prices earlier, looks good.  Like your name too 😆

[sjhdesmond]

6 hours ago, WinstonSmith said:

Hi All,

I'm taken aback by the level/breadth of discussion here, and wondered if anyone had advice for a newbie.

I've toyed with the idea of buying gold/silver for a while. I'm not a collector, or rich, just want to hedge my bets against a market crash, in a modest way.

If you were in the UK with say £1k, what would you buy and where from?  I'm not looking for maximum gain, collectables etc, just if the economy went t*ts up (looking at China, big banks), what would be good to own?

Looking to make an initial purchase of £1k worth and add to it each month, any advice welcome.

Thanks in advance.

I'm also relatively new to this, and of course everyone has an opinion on what to buy.  I think the best advice I've been given here is just to buy things that you like, because you'll be holding on to them for decades. And only buy what you can afford.  

 

[James32]

Just now, sjhdesmond said:

I'm also relatively new to this, and of course everyone has an opinion on what to buy.  I think the best advice I've been given here is just to buy things that you like, because you'll be holding on to them for decades. And only buy what you can afford.  

 

Yes this too helps longterm, every once in a while treat yourself to something nice/different ( within reason😁)

As it's only you staring at it for the foreseeable future.

[dicker]

Hi Winston

Firstly, welcome to the forum.

My advice would be to avoid Silver and the premiums that it attracts, especially if you are on a budget.  

Sovereigns would be my recommendation - they are priced keenly over spot, and sell very quickly and easily anywhere in the world.  

I personally would aim for Gillick Sovereigns (QE2 before decimalisation).  Cracking coins and well priced.  

Save for full sovereigns and the forum is a great place to obtain them at very sane prices

Best

Dicker
 

[KevinFlynn]

I second to avoid buying silver and concentrate on gold. Sovereigns or quarter ounce bullion (Britannia or Queen's Beasts if you can find a cheap one) are the best size to start with. Silver may be nice for speculation, but is better bought on top of a gold basis and with a little experience.

[Bruce06]

Agree with some opinions above to concentrate on sovereigns, which is liquid in case u have to sell in short period of time, and select those close to spots.  For silver, it is much more volatile than gold.  If you bet in the right side, you may gain more.  But if not, you are unable to do what you want, which is hedging against the crash.

[Bigmarc]

11 hours ago, WinstonSmith said:

just if the economy went t*ts up (looking at China, big banks), what would be good to own?

Just incase it doesn't go tips up then best to get bits that are easier to sell on. Stick with British and you will do fine. 

Pre 1947 from eBay. Pre 1920 from eBay. Britt's and sovs. Many people pound cost average in but doesn't work for me (skint). So I tend to sit on the money and wait for a good deal. If I had to start again with 1k, I would buy 1 sov and 15oz silver content of pre-decimal. I would keep doing that until I got to the desired level or the missus gives me earache.

[CANV]

as recommended by those in the know above. buy sovs for value.  gold for a potential profit and silver for a hobby. 

[Tn21]

2 questions you got to have clarity on is

What to buy 

Where to buy

 

My answer for your £1k budget would be initially to spend the full k on sovs and the cheapest possible sovs. Or 1/4oz  Brits if you can buy at a reasonable premium. 

As to where, I would go to the main dealers first time round (Atkinson's, bullion by post, chards, Hatton garden metals etc) 

 

Welcome to the forum

[Oddjob]

Having been in your shoes a few years back (ie new to PM's), the best advice I got was to start with a little diversification. ie some gold, some silver and also split across coins, rounds and bars. Go for standard low premium stuff to kick off with to get best bang for buck. I won't comment on which dealers to buy from as that's something I'll leave to UK members here to comment on...but I do take their lead on which dealers to use or not.

This will give you intro taste of the PM market and what it has to offer. You'll start to develop a feel for the market and most importantly what (gold or silver, coins or bars) appeals to you and thus where you want to take your stack re what's in it. Between making small purchases to start with and being a part of a stacking community like TSF ( or Silver Stackers in Australia which I'm part of too) you will increase your knowledge base and confidence.

Enjoy the adventure you have now commenced.

[WinstonSmith]

Wow, what helpful advice, and a warm friendly welcome.  I'm more used to division and arguments on twitter, what a refreshing change!

I'll take my time to compare prices - I'd probably stick with the more established online dealers to start with and build confidence, but plenty to think about based on your comments.

Thanks again 👍

[dicker]

Hi Winston

Good stuff.  The forum is in my experience the cheapest way to acquire bullion at the lowest margin over spot.

Main dealers are also competitive - look at QEII pre Decimal Sovereigns (Known as Gillicks) - Chards, Baird Mint, Atkinsons etc etc.  Steer clear of eBay.  

best

Dicker

[Darr3nG]

10 hours ago, dicker said:

The forum is in my experience the cheapest way to acquire bullion at the lowest margin over spot

Forum premium membership not only gives you early access to the Buy & Sell, but there is also a 'Compare' section for premium members, to quickly see the cheapest bullion on offer from many UK dealers.