Looks like I'm not the only noob around here...

[MondeoMan]

Hello to you all, I find myself here courtesy of BYB's YT videos  - just started going through the channel, many many thanks for your content.

Not bought anything yet so for now I'll be mooching about the forum for hints and tips, so thanks in advance for your thoughts and advice.  Like many, I'm looking to spread risk in case of future financial system stress.  I don't have that much to spend but got to start somewhere and, as a UK resident, it looks like gold bullion coins/fractional coins are my best bet right now and the forseeable future.  Silver premiums look harder to swallow right now, but maybe they won't look so painful in the event of financial collapse? 

I'm an occasional participant in the markets - on a VERY small scale, just learning how and breaking even ATM.  So my first Q to you all is: does anyone hedge their physical position in any way?  Tried a quick surf through the forum  and barely any posts on the subject.  I'm guessing for some that is counter intuitive, given that one of the reasons for stacking is to hedge against FIAT currency stress, why would you hedge your hedged position in a monetary system not known for being kind to the little guy?  But it occurred to me that it's possible to at least partially protect a physical long position during a downward move - say weeks or maybe months - with a CFD (or maybe an ETF)?

Your thoughts and experiences are most welcome.

 

[daca]

Welcome aboard and enjoy the ride!

[Wileyfox]

First off - welcome to the forum and yes enjoy the ride!

If you're interested in buying/selling then I'd highly recommend the silver membership on the forum as you'll see the trade listings as they are posted and you'll start to get a feel for how coins are priced here on the secondary market.

For me buying a gold sovereign is a good way to start as it's the most liquid gold coin and you'll always be able to sell them on here quickly for a fair price.

Silver premiums - yes they are high at the moment, the idea here though is to get the premium back by when you come to sell (here or elsewhere). Bullion Britannias are a good first choice for silver as there's a vibrant market on the forum both to buy and sell.

As you say hedging a physicial position is possible in many ways - going short or buying a put option with spread betting or CFDs, or an inverse ETF etc. I don't do this myself - I think we're in a bull market for PMs and even when I think the price of gold/silver will fall for a while I find it too stressful with all the price fluctuations and getting the position sizing right.

[Fenlander1]

Welcome to the tsf crazy train

[Happypanda88]

Some members might trade on margins or ETFs but I personally don't.

Welcome to the forum and enjoy your journey in the world of precious metals.

[Pete]

Welcome to the silver addicts club.
Once you get started you will need your habitual regular fix !!

Advice to a noob from a seasoned old fart -

1. Cut your teeth on sovereigns ( maybe consider half sovereigns - BUT make sure you can tell the difference !!! )
I've seen people confuse a half and a full and believe me unless you hold both at the same time you have a 50% chance of getting this wrong.

2. If buying silver - good place to start, as relatively cheap compared to gold - DO NOT BUY YOUR FIRST COINS ON E_BAY.
Stick to popular bullion one ounce coins like Britannias, Maples, American Eagles, Philharmonics, Libertads, Pandas etc.
I strongly recommend you buy from sellers on this forum with a perfect feedback score as you will most likely get the best prices.
Failing that check out the popular dealers - BullionbyPost, Atkinsons, Chards, SilverTrader and others and look for the best deal taking into account VAT and postage as some of these sellers add VAT to their headline price and some include shipping.

3. Buy digital scales for about £10-20 that can measure to 0.01g.

4. Ensure you have a reference to the coins you buy stating dimensions, weights etc. and be able to measure these things and understand that modern fakes from China can look perfect but there are tests you can do and that's why until you have some experience and genuine coins in your inventory only then can you consider eBay and Facebook etc. which are ripe in fakes but not from many reputable sellers - only you don't know who they are yet.

This forum can be your best friend so be prepared to spend time reading various posts.
Most questions will be answered here and if you wish to start your collection say in silver place a Wanted in the trade section stating what you are seeking, quantity and ideally price you are prepared to pay after checking the dealers etc and maybe even sold on eBay listings so you know market prices. Most if not all sellers on this site have done their homework so be realistic in expectations to gain the best responses.

[modofantasma]

15 hours ago, MondeoMan said:

does anyone hedge their physical position in any way?

I spread bet on the gold price as I do for shares. Not specifically to hedge positions but before I began using real money I back tested hundreds of trades in various forex pairs and commodities. Gold happened to be one of my higher win rates whereas silver was one of my worst.

For that reason I rarely spread bet silver though I use an ETC for long positions on silver (within an ISA)

[Jvc2858]

I joined TSF in November, and it's a great place for advice and trading, I've not paid for the membership yet, simply because I know I will be spending too much money buying up the tempting deals , the 72 hrs delay is a useful cooling off period for me....;)

 

[MondeoMan]

Big thanks for the welcome to you all, some nice tips from Pete and Wileyfox, will look into scales and calipers.

Atkinsons and Chards looked like good options after my first google search for UK bullion dealers, for a few starting reference pieces from reputable dealers.  A silver membership will also be on my list of to do's in the near future. 

6 hours ago, modofantasma said:

I spread bet on the gold price as I do for shares. Not specifically to hedge positions but before I began using real money I back tested hundreds of trades in various forex pairs and commodities. Gold happened to be one of my higher win rates whereas silver was one of my worst.

For that reason I rarely spread bet silver though I use an ETC for long positions on silver (within an ISA)

I did think about just trading PM's as a derivative - according to a tested trading plan - but the thought of holding real money (as opposed to all currency) appeals - and not just in a shiny thing way.  Looks like I'm in good company...

[trp]

Welcome to TSF!  

[MondeoMan]

Thank you 👍

[ChrisSilver]

Hello and welcome to The Silver Forum  

[MondeoMan]

Thank you kind sir.

Remarkable jump in gold in just a fortnight.  I'm seriously considering holding off buying anything for the forseeable, with price currently charging the fence.  I know some may say don't worry too much about spot, but when its approaching all time highs, every sense I have screams sit tight and be patient.  What are you all doing atm?

For those of you already in, happy days!

In the meantime, any recommendations for scales?  I figure spending a bit more than 20 quid on a set from Amazon is probably best in the long run.  Saw these online:

https://www.scalesworld.co.uk/all-products/jewellery-scales/es-compact-bench-scale.html

As always, your collective constructive thoughts and opinions are welcome.