Is Gold a good buy if I am low on cash or is silver better?

[Guest]

Hi, I’m new to pms and I love Gold, but anything I could afford would have a big premium on it. Should I just stick to silver. 

[James32]

Gold has a far lower premium than silver.....for instance a 1oz gold coin can be had especially on here for around 3% over spot ( sometimes spot)

But as you will be aware gold is far more expensive than silver so you will obviously get more silver for you're money.

Only you can decide which metal you want to collect, but if cashis low then ( after bills and food is sorted) maybe start with silver.

[Midasfrog]

If you buy gold carefully most of or all of the premium will be carried forward on the full range of sizes , plus always sell when gold is at a higher price than when you purchased .

Only buy proof and strike on the day fancy coins when the interest has dropped off a few years after the original release date and when they have entered the secondary market , quite often being picked up for bullion prices or just above 

A very good starting point with gold coins is picking up 1/10oz bullion with very low premiums as close to spot as you can find 👍

 

Edited February 7, 2022 by Midasfrog

[GreatBritishBullion]

I wouldn't be too concerned with premiums, at the end of the day when you come to sell it - you sell it at the market price and not spot price. Just buy what you like in terms of bullion, its good to have a little mixture of both gold and silver. 

If you're going to buy some gold then I'd definitely recommend sovereigns or half sovereigns.

[SilverStorm]

IMHO...if you're low on cash, make sure you have all of your life expenses/necessities taken care of first, like rent or mortgage, health care premiums, utilities, etc.   Then save enough cash for minimum of 3 months living expenses before thinking of getting into precious metals.   The worst scenario is you buy silver/gold, but then are forced to sell it at a loss because you have cash flow problems and need to make ends meet.

[scotwasp]

23 minutes ago, SilverStorm said:

IMHO...if you're low on cash, make sure you have all of your life expenses/necessities taken care of first, like rent or mortgage, health care premiums, utilities, etc.   Then save enough cash for minimum of 3 months living expenses before thinking of getting into precious metals.   The worst scenario is you buy silver/gold, but then are forced to sell it at a loss because you have cash flow problems and need to make ends meet.

I couldn’t agree more.  If your low on cash, I don’t think PM’s are a good defensive position and any short term investment is too risky. 

[MrTT]

On 07/02/2022 at 23:07, Guest said:

Hi, I’m new to pms and I love Gold, but anything I could afford would have a big premium on it. Should I just stick to silver. 

Try to buy both gold & silver 👍

[CANV]

pick up a sovereign when ever you can afford it 

[Centauri167]

Buying a LMU coin cost in Euro around 310, a Sovereign is less than 400 euro and on both you pay very low premiums.

So even if you have a little budget, just safe some money till you can buy one of those coins.

If you are in a position that even 300 euro is a goal that can not be reached, I think PM's are at the moment nothing for you.

Edited February 12, 2022 by Centauri167

[dicker]

My advice is save for a bullion Sovereign.  Try and get one minted before 2000 as they are a much nicer colour! 

[GoldDiggerDave]

If you are low on cash then don't buy any PM's.  Pointless buying gold or silver only for your boiler to breakdown and you are forced to sell it as in most cases you will lose money.   

If  you want to hold PM's then set aside X amount per month and once you have saved enough to buy into the game then do it with a secondary market bullion sovereign.  

 

[Pete]

If you are low on cash then stay clear of PMs altogether.

If however you meant that you have some spare to invest in PMs then it really doesn't matter whether you buy silver or gold.
Gold trades on small margins when buying and selling so you are banking on the spot price rising when selling; and falling when buying.
Gold, especially sovereigns, trades instantly and if spot doesn't change then you are trading within +/- 3% of value generally.

Buying and selling silver bars and coins privately ( this forum for example ) - you buy a coin for £26 and sell for £28 even though the metal is only valued at £17.
You buy the same coin from a dealer and pay £32 but they will only buy back for £16 say.
So you need to invest some time doing your homework and decide if buying silver is for you.
Premiums right now are high but stick to the coin unless you are selling to a dealer.
VAT paid on coins from business sellers is an instant 20% loss selling back.

If you are looking to spend less than £1,000 today, then maybe buy 1 sovereign and the rest in popular silver bullion coins - but compare prices and always remember the added shipping costs for single low value coins.

A suggestion is place a wanted in the trade section and see if anyone is unloading some silver but as prices are relatively low people like myself are definitely not in a position to sell as us oldies paid a damn sight more for our stack so waiting for the tide to turn.

 

[Bigmarc]

Hello, low budget here also. As above, if you are low on money, I wouldn't put any "directly" into PM's. 

However, if you have the bug and have the patience and time it can easily be done. Create a separate account (easily done nowadays, Monzo, revolute), and this is your metals account. Hook it up to eBay, Etsy, forums and anything else that takes your fancy, then the next step is to become king of the side hustle. 

You can do small or as big as you like, some guys on here buy tubes of coins then sell them for enough each to warrant stacking a free one. I've done many different bits as hobby's and sold them on from making lamps to card making and even bought 150 wedding dresses once at a auction and sold them individually. All this with the end game in mind of metals. I do have a monthly budget I put in to this account and it is very low and has been for years. 

Good luck, whatever you decide.

[beacon]

After making sure your daily expenses are covered and have a little cash extra on the side, then go into PM. If into gold, you might want to look into fractional gold such as the Mexican Pesos (dos, dos y medio, five) or 20 Franc Coins from Latin Monetary Union countries. Both these coins usually have lower premiums, recognized, and fairly liquid.

[Auronum]

Solid advice being given here by a knowledgeable community. The other thing I would iterate is that it’s great to diversify your precious metal portfolio 

 

gold and silver have a strong positive correlation but silver has an industrial demand quality to it which makes it slightly a slightly more ‘risk-on’ asset than gold 

 

gradually buying a bit of both overtime will also help you steady the course of the economic/market cycles 

 

(Also keep an eye on gold/silver ratios and buy more silver when it is cheaper relative to gold. Swap things around again when silver outperforms gold)