Purchasing proof gold coins. Is it really worth it?

[Ukbullionfan]

As the title says is there any point ? Paying a premium for the same content in weight of gold that’s not proof.

However is there a situation where it can be beneficial to purchase a proof ? Maybe if there’s a huge discount on the premium and there is a limited amount minted ? Then would it be worth purchasing ?

 

would love to know the pros and cons from the experienced people here as I’m thinking of purchasing my first proof as I have seen one I liked with huge discount. I’m just seeing if it’s worth it or not .

[James32]

Name the coin and answers will be easier!

But in my humble opinion, never buy a proof solely on future resale, but rather because you love the design. 

 

[GoldDabbler]

I don't understand the point of collecting proof coins. A whole heap more money for a wooden box and some extra paperwork. I understand the coin gets a better fluffing than its bullion counterpart but even so, the bullion coins I’ve bought up to now have been top notch, even under a magnifying glass. No marks, no scratches, pristine. And very collectable.

[chrisdobb]

I wonder how much of a advantage, over bullion, is a proof coin, Sovereign, without box and paperwork?

[James32]

Just now, chrisdobb said:

I wonder how much of a advantage, over bullion, is a proof coin, Sovereign, without box and paperwork?

If a special year (2022 for example) then as long as its in excellent condition, very beneficial. 

[Jvw]

I own a couple of 1oz gold reverse proof Libertads. I love the design and the quality of them. Also the low mintage is appealing in a weird way. 

[Petra]

2 hours ago, chrisdobb said:

I wonder how much of a advantage, over bullion, is a proof coin, Sovereign, without box and paperwork?

There always appears to be a lot of gold and silver proof coins for sale without a box or paperwork. I assume they are from split proof sets. Still not sure why people do that.

[Abyss]

Only if you have good insight into what could be a good flip/long term hold otherwise if you are stacking for weight best to stick to bullion grade gold as close to spot as possible.

[Heirlooms]

I would say it depends on your motivation:

Stacking as an inflation hedge - no unless you pick up a proof coin for bullion price which happens from time to time

Collecting purely for pleasure - up to you. Depends on you preference/taste. Buy coins you like

Short term flip - depends on the coin. The simple game of supply and demand but a chance you could get burn holding the bag (while everyone wants to maximise profit be mindful of flipping ettiequte)

Collecting to hedge/invest/flip long term - few and far between. If you look over the past 30 years the reality is there is a very small percentage of proof coins that have a higher value than their initial price (excluding the ones where the purchase price was below the current spot price), some substantially more. Special reverse sovereigns, most of the special reverse Britannias, a few 50p, crowns, great engravers and a few others have done well but for every successful proof coin there are a load of others that have long been forgotten. Probably better off going for proof coins that have a price history of growth like special reverse sovereigns

[CANV]

7 hours ago, James32 said:

If a special year (2022 for example) then as long as its in excellent condition, very beneficial. 

2022 will have the most bullion and proof and special edition coins ever,,, it will probably be a year to avoid paying premiums for   

[Happypanda88]

Personally, I wouldn't bother buying proof gold coins unless the mark-up is low and close to the price of bullion.

Gold is already expensive and it makes no sense to me to pay a high premium on top when in most cases you're unlikely to see a return come resell.

Edited May 9, 2022 by Happypanda88

[flyingveepixie]

Don't see the point meself.  I can understand collectors wanting proof coins for their aesthetic appeal but the pm content is the same as bullion coins and at the first sign of a tiny little scratch or dirty mark they revert back to being bullion anyway...

Edited May 9, 2022 by flyingveepixie

[Ukbullionfan]

1 hour ago, flyingveepixie said:

Don't see the point meself.  I can understand collectors wanting proof coins for their aesthetic appeal but the pm content is the same as bullion coins and at the first sign of a tiny little scratch or dirty mark they revert back to being bullion anyway...

This is what I wanted to hear. You have talked me out of getting proofs. Thank you. I suppose  it’s back to stacking sovs now. Although I’m tempted by a 50gram bar from sharps pixley. Premium is very low compared to others.

[flyingveepixie]

26 minutes ago, Ukbullionfan said:

This is what I wanted to hear. You have talked me out of getting proofs. Thank you. I suppose  it’s back to stacking sovs now. Although I’m tempted by a 50gram bar from sharps pixley. Premium is very low compared to others.

I don't really understand the bars thing either to be honest. UK gold and silver Coins, as currency, are CGT exempt but I don't think bars are.  Mind you I also don't understand why gold UK currency coins are VAT exempt but silver ones aren't...

[stataman]

Proof coins if bought at the right price are quite a good way to protect yourself should the price of gold/silver drop. They tend to hold their value as they have lower mintages and are collectibles. But you have to sell them privately to get the premiums you would expect/want. Bullion gold is good for quick liquidation with a dealer.

[MetalMandible]

In my opinion silver is the overall better buy with regard to proof coins.  They seem to overall carry a higher % of value relative to their bullion counterpart and are generally more sought after by collectors.  Not to say that there isn't a substantial market for proof gold coins, but it would seem to me that the majority of people accumulating gold are more focused on acquiring the metal itself and it's recognizability.  The cost basis being offset by the "extra shiney" simply isn't worth it to most.

[Leonmarsh]

For me bullion coins or semi numismatics like world gold 

Rather than proofs I would go for collectable High grade British coins but prepared to have deep pockets 

[Foster88]

13 hours ago, CANV said:

2022 will have the most bullion and proof and special edition coins ever,,, it will probably be a year to avoid paying premiums for   

2022 will most likely have a very high mintage of bullion sovereigns but I wouldn’t say it’s a year to avoid paying premiums for. As an example the 2022 proof sovereign in all denominations does continue and is expected to continue to sell well on the secondary market. 

You only have to look at proof editions and low mintages of previous Jubilee sovereigns. 2012 and 2002 still continue to sell for a premium. There is also the 1989 sovereign that too sells for a premium.

6 hours ago, flyingveepixie said:

Don't see the point meself.  I can understand collectors wanting proof coins for their aesthetic appeal but the pm content is the same as bullion coins and at the first sign of a tiny little scratch or dirty mark they revert back to being bullion anyway...

I’m sure they would still be a proof coin with imperfections, they wouldn’t stop being a proof due to scratches or marks.

[GoldDiggerDave]

Each to their own, for me stack as much bullion gold as I can and buy the right proof coins. It’s a win win.   And let’s face it give it long enough and spot is likely to surpass the price you paid for the proof coin at some point. 
 

 

 

[RDHC]

1 hour ago, GoldDiggerDave said:

   And let’s face it give it long enough and spot is likely to surpass the price you paid for the proof coin at some point. 
 

 

 

Exactly so, though at my age I may not be around to see this point proved.

[StackemHigh]

16 hours ago, flyingveepixie said:

Don't see the point meself.  I can understand collectors wanting proof coins for their aesthetic appeal but the pm content is the same as bullion coins and at the first sign of a tiny little scratch or dirty mark they revert back to being bullion anyway...

The proof has a completly different finish to the bu coin! marks or dirt does't make them a bu coin just a devalued proof. There is a lot of value  sorry premium added to proofs over bu for various reasons but damage doesn't change the fact that it was made as a proof coin and will always will a proof coin no matter its condition.

We are in an age now where a FDC coin is the only proof coin worth having really is a most sucessful marketing ploy by the grading companies!

I've been buying a few coins i really like in the sub-standard PF69 range for a lot less than a PF70, breaking them out for my collection displays then if i get another then regrading and getting a PF70. 

 

[Howie]

A few years ago I decided to invest a few Euros in either Diamonds, Whisky or Gold! Not having a clue about anything of the said so I went for Gold. Digging in I became aware of the QB,s collection. So being an expat and proud of British Heritage decided that was the way to go. Started with the Lion, Unicorn etc. BU Coins which are minted in their millions. Digging in deeper discovered that they were also on offer in limited and Proof quality. Didn’t know what Gold Proof (Whisky yes) meant then. The Crux of the matter being what exactly do you want from your investment? 
I decided to go for the collector, Rare and Quality which always pays off. Takes time I agree but the premium is well worth the wait.

I have the complete QB,s 1 oz Gold Proof Set which is an amazing sight. I’ve asked my Gold Dealer hier in Germany if I was to sell would 40.000€ be an acceptable price? He agreed as very reasonable. BUT you have to find a BUYER!

Stay safe y,all

Howie

[GoldenGriffin]

It all depends on what you want out of it and that can change over time.

I love the finish on proof coins, and along with certain designs and the rarity of them, it makes them even more attractive.

Proof all the way for me, that I want to keep and never let go! 😁

Edited May 10, 2022 by GoldenGriffin

[Ukbullionfan]

Is this “proof” worth it considering there’s only a montage of 700. 
 

https://www.bullionbypost.co.uk/proof-sets/14oz-proof-britannias/2021-14oz-mr-men-mr-happy-proof-gold-coin-boxed/

[James32]

1 minute ago, Ukbullionfan said:

Is this “proof” worth it considering there’s only a montage of 700. 
 

https://www.bullionbypost.co.uk/proof-sets/14oz-proof-britannias/2021-14oz-mr-men-mr-happy-proof-gold-coin-boxed/

I can't tell you whether to buy or not ( you must like the design..i dont ) but for a 1/4 oz proof that's a cracking price.