Are 1/10oz Gold coins a good long term investment?

[Divmad]

They seem to trade at pretty huge premiums to spot Gold, unlike the full Sovereign, which is the first drawback.

But they are so TINY. Weighing in around 3gms or so, they are more like fancy buttons than actual coins.

And then there are a growing number of different ones to choose from.

Or is it just down to the affordability question?

[Petra]

Bought at a decent price (such as on here), then ordinary bullion 1/10ths are great. If you can get some of the more collectible ones at a decent price then, again no problem when it comes to selling. Great coins🤔😮

[HonestMoneyGoldSilver]

Even a sovereign is pretty small at 7.98g

The 1/10th Britannias are worth buying in the UK if you can find low premiums. Fractional gold is going to be easier to sell in future if the price of gold appreciates. CGT-free legal tender coins (Britannias, sovereigns, etc) could well get a boost next year when the CGT threshold is reduced from £6,000 to £3,000

If you buy foreign gold and have to pay taxes on it the premium suddenly becomes enormous, making legal tender coins a more attractive investment in the UK

At higher premiums I don't find them attractive but I know they still sell. Sovereigns, 1/4oz - 1oz Brits are my personal choices

Edited August 6, 2023 by HonestMoneyGoldSilver

[Ignorant]

Affordability should certainly be factored in.

A general rule of thumb is the greater the weight, the less premium you pay provided you buy bullion. 1 Troy oz or 31.1 grams is usually the norm. 1/10 oz is 3.11 grams. Premiums are higher on smaller sizes, but they can often be sold at a premium as well depending on the type of coin. The benefits of fractional gold is that it’s relatively cheaper and therefore easier to offload should the need arise. There are simply more people that can afford a 1/10 oz gold coin than there are who can afford a 1 oz gold coin. Certainly something to take note of especially if the spot price of gold continues to rise. If you decide to invest in small denominations make certain you are able to hold on to it for a very long time or else you’ll most certainly be taking a huge loss on your investment. Avoid semi and numismatic coins like the plague. Premiums on those are crazy high.

Edited August 6, 2023 by Ignorant

[Divmad]

8 minutes ago, Petra said:

Bought at a decent price (such as on here), then ordinary bullion 1/10ths are great. If you can get some of the more collectible ones at a decent price then, again no problem when it comes to selling. Great coins🤔😮

Which are the more collectible ones, Petra? 

[Petra]

Collectible… right now, 2022 Queen Elizabeth, 2023 Charles, latest Royal Arms, Coronation, then take your pick from people such as Perth Mint. There are a lot of really nice 1/10ths about, if for example you look at Perth Mint, then there are lots of great designs to collect just in their own right.

[ChrisSilver]

The 1/10ths are small (and text extremely hard or impossible to read on some of them with the naked eye 😄), and premiums are higher, but they are also very easy to sell on here. being more budget friendly.  And some of the premium you can likely get back at resale. 

Also need to bear in mind that if selling 10x 1/10ths individually in the future to 10 different members, it is more work than selling 1x 1oz coin.

In the end, maybe simply having a diverse stack with multiple different weight options is actually the best way to go?  

[AaaGee]

37 minutes ago, Petra said:

Collectible… right now, 2022 Queen Elizabeth, 2023 Charles, latest Royal Arms, Coronation, then take your pick from people such as Perth Mint. There are a lot of really nice 1/10ths about, if for example you look at Perth Mint, then there are lots of great designs to collect just in their own right.

Thought i was done buying this year (bought plenty of gold and silver and now need to do some work on the house) then this morning the 2023 Royal Arms hit my radar, and so it goes on....

[HonestMoneyGoldSilver]

Half sov is 3.661g AGW (.117 toz), 1/10th is 3.110g (.100 toz) 

You can get the best value half sov from Chards for £190, a QEII 1/10th Brit for £186 from BBP, KCIII 1/10th from Tavex for £176 or Royal Arms 1/10th from Royal Mint for £193

The best coin by far is the Royal Arms but the best investment is the sov. If gold goes up, likely the premium on the Royal Arms is going to shrink as a % of its intrinsic value

Private sales you can get more money for better coins but that requires work. If you want to liquidate a large sum right now at a reasonable price you could bring your sovs to a dealer and get that price

Of course the Royal Arms design could boom 3 weeks from now or 30 years from now, nobody knows. The most likely result though long-term is half sov > 1/10th

For smaller amounts of money there is silver ....

[Roy]

2 hours ago, ChrisSilver said:

In the end, maybe simply having a diverse stack with multiple different weight options is actually the best way to go?  

I agree with this. Someday you might want to liquidate 1oz worth of cash and sometimes only a 1/10th. 

Keep your big 'uns in the SD box and the small fractional coins hidden at home? It's so easy to hide a tube of small coins. Allegedly.

 

 

[Orpster]

I will buy 1/10ths if I can get them at the right price, which for me is no more than an 8% premium over spot.
I like to keep a mix of 24ct & 22ct coins and 1/10 & 1/4oz are my coins of choice for 24ct.
I do prefer the 1/4oz though, even if only because they fit in the same tubes as my sovereigns  

[CazLikesCoins]

16 hours ago, Divmad said:

They seem to trade at pretty huge premiums to spot Gold, unlike the full Sovereign, which is the first drawback.

But they are so TINY. Weighing in around 3gms or so, they are more like fancy buttons than actual coins.

And then there are a growing number of different ones to choose from.

Or is it just down to the affordability question?

When you're in the midst of deepest gold fever - and you'll either fully understand what this is right now, or will certainly experience it in the future - any gold will do to satiate it. And if the money's not in the piggy bank to buy your preferred type of gold, sovereign, brit or whatever, those one tenners will look like a refreshing glass of water while traipsing though a desert 'n those 'buttons' will look like an oasis of gold cascading down upon you relieving your fever and helping you feel whole once again 😅 Buy them. Store them. Love them 🤪 

Edited to add:

Those 3 grammers and positively weighty compared to the legendary one gram bar. And even they are worth collecting 👍 imo. You don't need to aim for the morbidly obese 1oz coin, there's plenty down the food chain just as attractive. And when the price of gold rockets, and the economy collapses, you might find the smaller weights far easier to shift than Gran'pa's one ounce bald eagle. 

Edited August 7, 2023 by CazLikesCoins
additional waffle added

[Minted]

I buy 1/10oz due to the price, rather than the premium.  They are a bit small, but I can still see the detail on them...in good daylight next to a window anyway. 😄

I made the mistake of buying a 1/8th Sovereign last year, can't really see much on that.  Have no intentions of buying smaller than a 1/10oz again.

I've had a bit extra spare over the past few months, so bought 1/4oz instead of tenths...bit easier to see, but due to the way circle area works, not as bigger difference as I was expecting.

I'm still buying more for a collection though, so not fussed about investment.  I do think they're good value for money bought brand new - especially when compared to the premium on brand new 1oz silver.

[JohnA1]

Haven't yet got anything smaller than a sovereign, will probably get a few half sovs if the premium is not too far off that of sovs. Same with 1/10th Britannias, wouldn't hurt to have some if the premium can be recouped.

On a different note, some might question the phrase 'gold coins' and 'investment' in the same sentence.

I see it more as a form of inflation-proof savings.

Investment implies a yield, PMs have none

[CazLikesCoins]

59 minutes ago, JohnA1 said:

Haven't yet got anything smaller than a sovereign, will probably get a few half sovs if the premium is not too far off that of sovs. Same with 1/10th Britannias, wouldn't hurt to have some if the premium can be recouped.

On a different note, some might question the phrase 'gold coins' and 'investment' in the same sentence.

I see it more as a form of inflation-proof savings.

Investment implies a yield, PMs have none

Some of us don't care about that grown up stuff and just like shiny things 😄

[Coverte]

20 hours ago, ChrisSilver said:

The 1/10ths are small (and text extremely hard or impossible to read on some of them with the naked eye 😄), and premiums are higher, but they are also very easy to sell on here. being more budget friendly.  And some of the premium you can likely get back at resale. 

Also need to bear in mind that if selling 10x 1/10ths individually in the future to 10 different members, it is more work than selling 1x 1oz coin.

In the end, maybe simply having a diverse stack with multiple different weight options is actually the best way to go?  

This is a good summary/assessment - personally I like a bigger 1oz coin, but equally Sovereigns are my second go to coin of choice;

coins up to 0.25oz I can just about get on board with, but wouldn't touch them were I not confident myself, or in reality, my family, will get back the premium I paid.

I have some half sovs, but on the memorial, for example, almost all that stunning detail is lost - so to summarise for myself, I minimise my fractional buys to those I both like and think hold future rarity potential. 

I have zero interest in 1/10th coins of any metal - best find the discipline to save a bit longer IMHO.

Edited August 7, 2023 by Coverte
1/10th's

[Bars]

I had to raise a good sum of cash earlier in the year, the 1oz coins helped me reach my target quick when priced right, the sovs sold quick too, but I had to sell them in bundles at a lower price to raise the capital. It wasnt too bad as I was in profit with them anyway - but I could have got a good amount more out of them if listed individually, but time wasnt on my side. But again peoples financial circumstances will vary, the caveat is to have a range of sizes. Sometimes you may need a little bit of cash, sometimes you may need a lot. A more important lesson is to have a good amount of cash saved, so you don't have to liquidate LOL.

[Coverte]

55 minutes ago, Bars said:

I had to raise a good sum of cash earlier in the year, the 1oz coins helped me reach my target quick when priced right, the sovs sold quick too, but I had to sell them in bundles at a lower price to raise the capital. It wasnt too bad as I was in profit with them anyway - but I could have got a good amount more out of them if listed individually, but time wasnt on my side. But again peoples financial circumstances will vary, the caveat is to have a range of sizes. Sometimes you may need a little bit of cash, sometimes you may need a lot. A more important lesson is to have a good amount of cash saved, so you don't have to liquidate LOL.

Was it you who sold almost 1/2 a set of Gillicks at about 2% over spot - if so, thank you, only one more and I'll have yet another set of 10 !!

[Roy]

Looking back through my spreadsheet, in 2016 a sovereign was around £190, a half £90/100 and a tenth £85.

I'd call that an investment 😉 

[Coverte]

1 minute ago, Roy said:

Looking back through my spreadsheet, in 2016 a sovereign was around £190, a half £90/100 and a tenth £85.

I'd call that an investment 😉 

Didn't have spread sheets back in the 90's, or at lest I didn't,

but I do well recall 3 digit gold, and the 1st digit was pretty damn low for quite a while.

Gold doing it's job ............. ✔

[CazLikesCoins]

1 hour ago, Coverte said:

I have some half sovs, but on the memorial, for example, almost all that stunning detail is lost -

It's not when you've got a 5000x zoom on your camera 🤪 I haven't got a pic of the reverse, but if I did, I'd find it perfectly splendid 💪

[CazLikesCoins]

6 minutes ago, Coverte said:

Didn't have spread sheets back in the 90's, or at lest I didn't,

but I do well recall 3 digit gold, and the 1st digit was pretty damn low for quite a while.

Gold doing it's job ............. ✔

We had spreadsheets in the 90s. I remember making macro formulas for my City & Guilds level three. Was a bygone era sans internet with floppy disc drives. Loved it. I could actually play the video games back then. Now it's all Fortnight and I have to connect to someone named Tamika on the other side of the world to partner up to fight a Sonic the Hedgehog Terminator hybrid and pay real money if I want to change my avatar's underpants. 

[Coverte]

6 minutes ago, CazLikesCoins said:

We had spreadsheets in the 90s. I remember making macro formulas for my City & Guilds level three. Was a bygone era sans internet with floppy disc drives. Loved it. I could actually play the video games back then. Now it's all Fortnight and I have to connect to someone named Tamika on the other side of the world to partner up to fight a Sonic the Hedgehog Terminator hybrid and pay real money if I want to change my avatar's underpants. 

The first system I recall was windows 95, not sure what came before, but that moved to Windows 98 and then the big deal (as M/soft swept millennium I think it was under the rug) and behold Windows XP.

I still have floppy discs kicking around, amazing the changes we've seen in a relatively short period - although not all for the better IMO .............

[CazLikesCoins]

19 minutes ago, Coverte said:

The first system I recall was windows 95, not sure what came before, but that moved to Windows 98 and then the big deal (as M/soft swept millennium I think it was under the rug) and behold Windows XP.

I still have floppy discs kicking around, amazing the changes we've seen in a relatively short period - although not all for the better IMO .............

I think we were on Windows NT as my course was around '94/5 but may be wrong. It was quite a few months ago now. 🤣 We did have printers, yup  dot matrix. And FAX, can't forget that. We even had a telephone. And the X Files. There was a group of us who used the library our pc course was based in to form an 'alien discovery team' We didn't get very far. Without the invention of the internet all we could do was sit around wondering if the librarian was ET. 

I've gone off on a tangent again haven't I? 😜 

I'll return with something gold in a bit.

Edited August 7, 2023 by CazLikesCoins

[NGMD]

Computers: BBC B😁- Spectrum ZX81- Amiga St- W95

 

I think the point is, buy what your budget allows, but buy something Gold from peer to peer. In ten years time the premium will be insignificant on a 1/10. People are commenting on premiums etc…..you’re talking a 1/10- not Kilos🤪

I buy what I can,and I like the designs to keep me interested. If a coin/bar has no visual appeal, then I pay more for one that does. That’s just me.