Fractional gold expensive

[Oystonousted]

Hi there

Just checked Goldsilverbe and some of the 1/10 coins which I used to purchase are so expensive now. How come?

 

Lunar 1/10s and Kangaroos premiums are huge. Generic bullion is better, but previously most of these coins were a lot cheaper (premium) to buy.

[Gordy]

1 hour ago, Oystonousted said:

Hi there

Just checked Goldsilverbe and some of the 1/10 coins which I used to purchase are so expensive now. How come?

 

Lunar 1/10s and Kangaroos premiums are huge. Generic bullion is better, but previously most of these coins were a lot cheaper (premium) to buy.

how much are the lunars?

[MBTPSilver]

Demand for 1/10oz coins is getting bigger each year as gold rises. The price rises have a proportionally higher impact on the smaller coins too; the higher postage costs for example result in a bigger premium on a 1/10oz coin than a 1oz coin.

[Kitalon]

I don't know if investment in small gold coins such as 1/10 oz Britannia series is worth it, if only they didn't come with such a premium. I'm guessing that they'll only go for spot when it comes to cashing in. It doesn't seem to make much sense, surely it would be better to save up and go for the quarter or 1 oz.

[Gordy]

4 minutes ago, Kitalon said:

I don't know if investment in small gold coins such as 1/10 oz Britannia series is worth it, if only they didn't come with such a premium. I'm guessing that they'll only go for spot when it comes to cashing in. It doesn't seem to make much sense, surely it would be better to save up and go for the quarter or 1 oz.

TBH I've not seen a 1/10th go for spot for as long as I can remember, there will always be a premium on them, it can just fluctuate, lowest I've seen on here recently was £165.00 plus post when spot was in the £1500.00's

[Kitalon]

Fascinating! Granted it that it fluctuates what would you say that the average premium is?

[Petra]

7 minutes ago, Kitalon said:

I don't know if investment in small gold coins such as 1/10 oz Britannia series is worth it, if only they didn't come with such a premium. I'm guessing that they'll only go for spot when it comes to cashing in. It doesn't seem to make much sense, surely it would be better to save up and go for the quarter or 1 oz.

All depends where you are cashing in! Pawn shop or dealers pretty obvious, however, places like on here it’s ok. However, always best to try and hold on and try to find the bargains🤔

[Gordy]

3 minutes ago, Kitalon said:

Fascinating! Granted it that it fluctuates what would you say that the average premium is?

recently I would say on here the average has been around £175.00 for standard Brits etc and a bit higher for the more sought after ones

[Kitalon]

Interesting, so £175 would work out at 7.93% by today's gold rate. But looking at the RM they're selling a standard 2023 1/10 Britannia at £195.44 at 17.55%, £34.31 above spot. I don't understand why such a premium would be retained over and above the bullion value when it comes to selling, I would've imagined that you'd only get the spot price.

[Petra]

Just don’t get hung up about spot price. Anyone who has been buying gold and silver for a while will have no problem making some money on sales, however, unless you’re getting desperate, spot price or no, you’re not going to sell for a loss. Even if you bought sovereigns for £100, you paid a premium. 

[Kitalon]

OK, that makes sense I guess the thing I'm getting stuck on is would I rather buy x10 1/10th oz at £1950, or x1 1 oz Britannia £1660. I find the disparity confusing. To me it seems that 1/10 are much less value per gram, but if you can resell them with a premium I guess then it cancels it out.

Sorry for all the newbie questions, I'm just trying to learn about the field before I start digging it up. 😉

[Darr3nG]

48 minutes ago, Kitalon said:

I guess the thing I'm getting stuck on is would I rather buy x10 1/10th oz at £1950, or x1 1 oz Britannia £1660.

Have you considered sovereigns?  

[Kitalon]

Yes, I find myself swinging between them and 1/4 Brits on a daily basis. I should probably just flip a coin and call it.

[Bigmarc]

22 minutes ago, Kitalon said:

. I should probably just flip a coin and call it.

You could flip a sovereign as many times as you like. A brit? Probably best leave it in the capsule. 

[Gordy]

2 hours ago, Kitalon said:

OK, that makes sense I guess the thing I'm getting stuck on is would I rather buy x10 1/10th oz at £1950, or x1 1 oz Britannia £1660. I find the disparity confusing. To me it seems that 1/10 are much less value per gram, but if you can resell them with a premium I guess then it cancels it out.

Sorry for all the newbie questions, I'm just trying to learn about the field before I start digging it up. 😉

Also don't look at the Royal Mint as your source or guide to pricing, on here you get the bests deals, and without looking I'd say Atkinsons, Tavex, Chards, HGM and Bleyer will all be cheaper than the RM

[SeverinDigsSovereigns]

16 minutes ago, Gordy said:

Also don't look at the Royal Mint as your source or guide to pricing, on here you get the bests deals, and without looking I'd say Atkinsons, Tavex, Chards, HGM and Bleyer will all be cheaper than the RM

Even BBP will be cheaper than RM...

[Agaupl]

1 hour ago, Kitalon said:

Yes, I find myself swinging between them and 1/4 Brits on a daily basis. I should probably just flip a coin and call it.

Do not buy from the RM. sovereigns are as close to a pure gold play as you can get without going paper. Nothing wrong with Brit’s either.. whichever is the best price /oz buy that. Until you catch the numi/stacker bug of course. 

[Spyder]

Just click on the compare button at the top of page. Look at the lowest price available there and if someone on the forum is selling cheaper, you know where to buy.  Do not overthink things.

Looking just now, Tavex are cheapest for 1/10 Britannia posted at £187.    

Buying off the forum would be cheaper

[Darr3nG]

3 minutes ago, Spyder said:

Just click on the compare button at the top of page. Look at the lowest price available there and if someone on the forum is selling cheaper, you know where to buy.  Do not overthink things.

Looking just now, Tavex are cheapest for 1/10 Britannia posted at £187.    

Buying off the forum would be cheaper

Needs premium membership... yet another reason for joining up