Bullion vs Proof vs Graded

[FourNinesFine]

With the exception of two very specific items, my stack consists entirely of bullion.

The gold is a nod toward retirement and having an additional buffer to draw on should I want / need to; the silver, so I have a big pile of shiny things to hand over to the kids.

I subscribe wholeheartedly to the 'gold as a hedge against inflation' / wealth storage vehicle. I'm not in it expecting it to go to the moon.

But seeing all these beautiful Proof coins and the passion with which many forum members speak of them - as is rampant now in expectation of the Coronation coins... i wonder, should I be widening my horizons?

Or, are the proofs only for the collectors and not the stackers? By which i mean, the "buy what you like / enjoy" crowd... and not for someone like me who is not looking to gamble?

Put simply, is a £850 proof sovereign just as likely to hold its value as the same £400 bullion sovereign? Or is it more subjective than that with the more numismaticy (it's a word!) side of things?

And as far as grading goes... again, is any additonal premium paid on the way in, usually realised on the way out?

I'm not throwing shade on anyone else's preferences, just looking to better understand whether sticking with bullion means I'm plotting a sensible course, given my goals... or if I'm being needlessly conservative and restricting myself from an otherwise much broader stacking landscape.

Thoughts welcome. Assuming any of that made sense.

 

FNF.

Edited April 20, 2023 by FourNinesFine

[MonkeysUncle]

Made perfect sense.

I suscribe to the fact that I can ditch bullion to a dealer or pawnbroker at spot (give ir take) quickly and easily.

If you need to shift a proof then you need somebody who is prepared to pay premium. If you're in a hurry, then you could end up shafted.

This article written by BBP agrees with me.

https://www.bullionbypost.co.uk/index/gold/gold-sovereigns-good-investment/

I'm sure many won't!

A bullion coin can be nice and shiny and pretty and unblemished. So long as it's not a 1oz piece of silver from KnuckleDraggerCentral. Never been dissatisfied with a new Sov or oz of gold, it's the silver monkeys in my experience that don't give a toot.

[FourNinesFine]

What a great article. Thanks for pointing me at that @MonkeysUncle.

I think we'll all continue to interpret this guidance in our own ways:  "...a small allocation of British gold Sovereigns can be a useful diversification in an investment portfolio."

Also, I've never bought precious metals from there, but I'm pretty sure I used to drink in the Knuckle Dragger Central.

Cheers.

[ZRPMs]

My collection Is mostly bullion. As far as proof and special issues go. I have a few but only because I got them for not much more than the bullion. I've found £ cost averaging works well for me. 

I've often wondered about the graded coins. and whilst they are usually stunning coins, My interest is not really in any numismatic value. 

[refero]

9 hours ago, FourNinesFine said:

Or, are the proofs only for the collectors and not the stackers? By which i mean, the "buy what you like / enjoy" crowd... and not for someone like me who is not looking to gamble?

Put simply, is a £850 proof sovereign just as likely to hold its value as the same £400 bullion sovereign? Or is it more subjective than that with the more numismaticy (it's a word!) side of things?

that's key.

Stacking doesnt require any particular knowledge, rather than spotting the best deal over... spot. 2%-3% etc etc. 

In my opionin one should never ever mix stacking with numismatic where with numismatic i mean every piece you buy with an extra value over weight. And of course proof coins fall into this basket. 

Stacking is something objective. Numismatic no. How much you are ready to pay for a numismatic piece is something really personal (a coin you "desperately" need might force you to over pay it in an auction because it has a special meaning to you when has no meaning for others...). To make it short, every time you pay an extra value over the gold (or silver or platinum etc) you are taking a risk. And it makes sense that BEFORE doing soyou take some time to study, to check how that coin is performing (past auctions with an eye on the different grading etc etc etc)

not easy, but once you are taken in...addictive

 

 

 

[FourNinesFine]

Thanks for the advice.  👍

6 minutes ago, refero said:

not easy, but once you are taken in...addictive

 

Everything about these shiny seductresses is addictive. Probably best I try and avoid the siren-call of numasmatics for a while longer!

[MonkeysUncle]

I have to admit that I am at this time enviously eyeing a lovely collection of bullion Sovs which are up for 25% premium over spot.

Itchy trigger finger vs Yorkshire 'ow much!

Not sure which way it'll go...

 

[Jake0111]

I will buy mainly bullion but will buy proofs if there not that much more, but i prefer to buy a graded proof than one thats not graded.

Edited April 23, 2023 by Jake0111

[CANV]

I stick with bullion. There are far too many people on here with encyclopaedic knowledge of numismatic stuff to even attempt to compete with. It would be like playing chess with Spassky..  

silver however has more scope for being a moron.  I don’t mind buying some so called vintage bars at a pound or two over the odds .  I love em 

and I know I’ll make a mint when silver gets to 30 quid…. Mm maybe leave those in the will.  

[Silverlocks]

PF70 proof coins in cases leave me cold.  You don't really do anything with them - It's just ticking a box.  As collectibles, I get why some folks love having the perfect coin but it doesn't really do a lot for me.  I'd rather have a nice Victoria or George V sovereign that's actually a find - in the case of the sov you've picked it out of a sea of mediocre examples.

Having said this, I've got a firm foot in the stacking camp.  Some higher premium items like proofs or rare coins could have a place in a stack if bought at the right price - numismatic items can have upside as well as downside - but you wouldn't want to overpay.  

 

Edited April 30, 2023 by Silverlocks