Newbie looking for an advice

[vyciook]

Hello,

New to gold world (been stacking some silver) looking to buy ~800-900GBP worth of gold but golden question is what should I buy with lowest premium? Instrested in getting some coin, a 1/2oz maybe,  not a bar.

Planning on keeping for atleast a year.

Leaning towards good old Britannia but maybe some slither bigger premium coin bring me more value in future?

What do you guys suggest ?

Thank you very much.

[Zeuk]

A couple of sovs with change left over imo, I wouldnt expect much if any roi over a year though.  

[vyciook]

8 minutes ago, Zeuk said:

A couple of sovs with change left over imo, I wouldnt expect much if any roi over a year though.  

Not looking any roi actually, just don't trust cash and banks

[GBStacking]

Welcome to the forum

With that budget, I'd probably go 2 full Sov's and have a little change left over. Or try to save a little more and go for 3. These will offer a combination of the lowest likely premium whilst retaining excellent liquidity. If you do want just 1 coin, then i think a 1/2oz Brit or maybe a Double Sov wouldn't be a bad choice. 

As you are UK based, all of the coins mentioned would also be CGT exempt as well which may well be important to you with the upcoming reductions in UK CGT allowances.

[Orpster]

Any of these: Half sovereigns x4, Sovereigns x2, 1/4oz Britannia x2, 1/2oz Britannia x1, Double Sovereign x1

Likely the Sov's will be the easiest to liquidate, but none are hard to sell

 

Edited January 6, 2023 by Orpster

[JamesH]

👆what all this lot said. Won’t go far wrong on any of that advice. I too would have said a pair of sovereigns. Welcome to the forum 👍🏼

[flyingveepixie]

I'm partial to a nice double sov meself. There is something very reassuring about the size, weight, and feel of them in your hand which you don't get with sovs or half sovs.  But any of 1/2 sovs, full sovs, double sovs are good to have and with your budget you could buy a nice little combination for the sake of variety...

Edited January 6, 2023 by flyingveepixie

[Happypanda88]

1 hour ago, vyciook said:

Not looking any roi actually, just don't trust cash and banks

You're not the only one on here. But £800-900 doesn't go far anymore when it comes to gold.

On a limited budget, I would agree with those who suggested buying a couple of gold sovereigns.

I think it's the best option on a limited budget. They are low premium and are easy to sell, should you need to.

 

 

[LawrenceChard]

2 hours ago, vyciook said:

Hello,

New to gold world (been stacking some silver) looking to buy ~800-900GBP worth of gold but golden question is what should I buy with lowest premium? Instrested in getting some coin, a 1/2oz maybe,  not a bar.

Planning on keeping for atleast a year.

Leaning towards good old Britannia but maybe some slither bigger premium coin bring me more value in future?

What do you guys suggest ?

Thank you very much.

It might be worth you reading this:

https://www.chards.co.uk/blog/advice-guide-for-uk-bullion-investors/1041

😎

[James32]

2 hours ago, vyciook said:

Hello,

New to gold world (been stacking some silver) looking to buy ~800-900GBP worth of gold but golden question is what should I buy with lowest premium? Instrested in getting some coin, a 1/2oz maybe,  not a bar.

Planning on keeping for atleast a year.

Leaning towards good old Britannia but maybe some slither bigger premium coin bring me more value in future?

What do you guys suggest ?

Thank you very much.

Get over to my current auction and get yourself bidding on a 1/2oz gold britannia ( currently at spot ) 😆 

On a serious note, go for the lowest premium but CGT free coin you can afford. 

 

[Orpster]

4 minutes ago, James32 said:

Get over to my current auction and get yourself bidding on a 1/2oz gold britannia ( currently at spot ) 😆 

On a serious note, go for the lowest premium but CGT free coin you can afford. 

 

This sudden obsession with CGT free coins is confusing me,

Even when the rate is lowered to £3k a year that's on profit.  Say you bought a Maple or Krug at spot today and spot went up £200 in the next couple of years, you would still have to sell 15x 1oz coins in any financial year before you started being in scope for CGT.  And that's if you even bothered telling the tax man!  Unless your a whale with hundreds of ounces ignoring coins that are not CGT free and are a bargain, in favour of paying more for CGT free coin is pure madness.  There is a 1oz Krug sat wallowing in the sale section for under spot, when before has gold under spot sat in the trade section!

Rant over, back to sleep

[James32]

1 minute ago, Orpster said:

Unless your a whale

Hi

[James32]

1 minute ago, Orpster said:

This sudden obsession with CGT free coins is confusing me,

Even when the rate is lowered to £3k a year that's on profit.  Say you bought a Maple or Krug at spot today and spot went up £200 in the next couple of years, you would still have to sell 15x 1oz coins in any financial year before you started being in scope for CGT.  And that's if you even bothered telling the tax man!  Unless your a whale with hundreds of ounces ignoring coins that are not CGT free and are a bargain, in favour of paying more for CGT free coin is pure madness.  There is a 1oz Krug sat wallowing in the sale section for under spot, when before has gold under spot sat in the trade section!

Rant over, back to sleep

I agree, but most don't.

As for the krugerrand, I just think people need the price to stay where its at for a few weeks, then normal buying will resume. 

It's ironic, we all want the price to go up,then get cautious when it does 😆 

[Orpster]

1 minute ago, James32 said:

I agree, but most don't.

As for the krugerrand, I just think people need the price to stay where its at for a few weeks, then normal buying will resume. 

It's ironic, we all want the price to go up,then get cautious when it does 😆 

True enough, 

I am always torn whenever there is a big price move in either direction.  Happy when my stack value increases but grumpy my monthly splurge will get me less or cost me more, and visa versa  

[GBStacking]

48 minutes ago, Orpster said:

This sudden obsession with CGT free coins is confusing me,

Even when the rate is lowered to £3k a year that's on profit.  Say you bought a Maple or Krug at spot today and spot went up £200 in the next couple of years, you would still have to sell 15x 1oz coins in any financial year before you started being in scope for CGT.  And that's if you even bothered telling the tax man!  Unless your a whale with hundreds of ounces ignoring coins that are not CGT free and are a bargain, in favour of paying more for CGT free coin is pure madness.  There is a 1oz Krug sat wallowing in the sale section for under spot, when before has gold under spot sat in the trade section!

Rant over, back to sleep

It's definitely true that it's on £3k of profit (at the delightful lowered rate in a couple of years) and i get why it seems that people are suddenly becoming rather obsessed with this, but don't forget that CGT's a £3k allowance for ALL profits you might make in a year on sold items, including shares if they are outside an ISA (there are some exemptions depending on what they are), not just on your stack. So people may find it's relevant even if it's just a few hundred pounds of exemptions.  

 

[Orpster]

4 minutes ago, GBStacking said:

It's definitely true that it's on £3k of profit (at the delightful lowered rate in a couple of years) and i get why it seems that people are suddenly becoming rather obsessed with this, but don't forget that CGT's a £3k allowance for ALL profits you might make in a year on sold items, including shares if they are outside an ISA (there are some exemptions depending on what they are), not just on your stack. So people may find it's relevant even if it's just a few hundred pounds of exemptions.  

 

True, I never considered that, likely because any shares I have are within a pension scheme so protected from the taxman's grubby mits that way
I have read a couple of articles recently that suggest the govt are considering including any profit from house sales as CGT as well, no real details but I do suspect when you see articles like that its the government testing the water to see how its received.  If they did that on your primary residence, without considering that most sales just fund or partially fund your next purchase, it would be a nightmare.

[GBStacking]

42 minutes ago, Orpster said:

True, I never considered that, likely because any shares I have are within a pension scheme so protected from the taxman's grubby mits that way
I have read a couple of articles recently that suggest the govt are considering including any profit from house sales as CGT as well, no real details but I do suspect when you see articles like that its the government testing the water to see how its received.  If they did that on your primary residence, without considering that most sales just fund or partially fund your next purchase, it would be a nightmare.

I don't think I've seen anything about applying this to the primary residence yet, but general view where i work is that they expect them to come in hard on second properties etc in the next few years. I also don't like the constant mentions of a lifetime gift allowance that just wont seem to die. That one would be really complicated to enforce and would seriously hammer millions. I'm just working towards an early retirement with a little stack of Sovs to flog to tide me over till pensions kick in. I'm trying to set my stuff up to make the most of allowances now so that if\when they have to be scaled back in the future the pains not so bad. 

[vyciook]

5 hours ago, Orpster said:

Any of these: Half sovereigns x4, Sovereigns x2, 1/4oz Britannia x2, 1/2oz Britannia x1, Double Sovereign x1

Likely the Sov's will be the easiest to liquidate, but none are hard to sell

 

So many choices with Sovs very sad im not familiar with them, does older tend to be more valuable and how to value them in general because prices might be very different on same weight sovs. With all that said, some of them would be way more pleasant to have then some 1/2 oz standart coin. 

Need to make some research into those sovs 🧐

[Orpster]

5 minutes ago, vyciook said:

So many choices with Sovs very sad im not familiar with them, does older tend to be more valuable and how to value them in general because prices might be very different on same weight sovs. With all that said, some of them would be way more pleasant to have then some 1/2 oz standart coin. 

Need to make some research into those sovs 🧐

You cannot really go wrong ordering a best value bundle from a dealer, I have some coming from Hatton Garden Metals tomorrow,

They are the lowest cost option from dealers and will be a range of years and mints.  I would also recommend Chards, Gerrards, ATS, Sharps Pixley and Atkinsons Best Value sovereigns.  Very occasionally you will get a rare or special reverse in the bundle, had a few last year from both Hatton Garden Metals and Sharps Pixley who both seem less inclined to remove the better sovereigns from their best value stock.  I see you have a silver membership so can use the compare prices tool to see who has stock, though I have noticed recently a few dealers URL's have changed for best values and TSF have not updated their links so are not picking them up in the API.  ITs worth finding the pages yourself and bookmarking them in your browser, then check prices.  You can also use that to make sure you do not over-pay on here

I would also recommend you pick up 'The Gold Sovereign' by Michael Marsh, the bible for sovereigns and a must have for a new collector.  Chards did have it on offer just before Christmas and may have stock left

[vyciook]

1 hour ago, Orpster said:

You cannot really go wrong ordering a best value bundle from a dealer, I have some coming from Hatton Garden Metals tomorrow,

They are the lowest cost option from dealers and will be a range of years and mints.  I would also recommend Chards, Gerrards, ATS, Sharps Pixley and Atkinsons Best Value sovereigns.  Very occasionally you will get a rare or special reverse in the bundle, had a few last year from both Hatton Garden Metals and Sharps Pixley who both seem less inclined to remove the better sovereigns from their best value stock.  I see you have a silver membership so can use the compare prices tool to see who has stock, though I have noticed recently a few dealers URL's have changed for best values and TSF have not updated their links so are not picking them up in the API.  ITs worth finding the pages yourself and bookmarking them in your browser, then check prices.  You can also use that to make sure you do not over-pay on here

I would also recommend you pick up 'The Gold Sovereign' by Michael Marsh, the bible for sovereigns and a must have for a new collector.  Chards did have it on offer just before Christmas and may have stock left

Very helpful. Will look into!

Edited January 6, 2023 by vyciook

[Fenlander1]

2 hours ago, Orpster said:

use the compare prices tool

Thank you for this post I had never noticed this tool. You saved me hours.👍

[ArgentSmith]

5 hours ago, Orpster said:

Even when the rate is lowered to £3k a year that's on profit.  Say you bought a Maple or Krug at spot today and spot went up £200 in the next couple of years, you would still have to sell 15x 1oz coins in any financial year before you started being in scope for CGT. 

What if you take a ten year view over which time lets say gold doubles which quite likely would be underperforming inflation, what if you have 5, 10, 15, 20, 30 etc ounces of krugs/maples you want to sell pronto through a dealer?

Edited January 6, 2023 by ArgentSmith

[dicker]

I would go for a couple of Sovs. 

Liquid - easy to buy / sell

Best

Dicker

[Orpster]

35 minutes ago, ArgentSmith said:

What if you take a ten year view over which time lets say gold doubles which quite likely would be underperforming inflation, what if you have 5, 10, 15, 20, 30 etc ounces of krugs/maples you want to sell pronto through a dealer?

All good points, but that’s no reason to have no gold that isn’t CGT free.  I have a few fractional maples, Krugerrands and philharmonics and a couple of 1oz too, but mostly I have sovereigns 

People are selling all their coins that aren’t CGT free and avoiding buying more, it’s a balance I guess but selling and ignoring coins because of it is overreacting (IMO)

[Stuntman]

I agree with what most others have been saying.  Personally with that budget and no existing gold holdings I would buy two new bullion sovereigns.  Usually the current year's coin is the cheapest to buy, but at the moment we are in a bit of a hiatus waiting for the 2023 bullion sovereign to be released. 

So if you can buy the 2022 bullion sovereign coins at a decently low premium, definitely get those.  They have the additional plus-point of being a special reverse design for the Platinum Jubilee, and of course the poignancy of being the last bullion issue for QEII.