Calculating Spot price +or-

[AaaGee]

Morning all.

Just after a little info please.

Been collecting/stacking for a couple of years now and been buying with my heart rather than my head. So next year i want to sharpen up my game.

When buying whats your limit you are willing to pay above spot?

How do you calculate this figure, say on sovereigns or 1/10ths and 1/4s of the fine stuff?

I'm sure its an easy calculation when you know it.

 

Cheers all

AaaGee 

[Petra]

I am still pretty new to this, however, not that I ignore ‘spot’ but find it is more useful for me when looking at 1oz gold coins/bars. Virtually all my gold is held as full and half sovereigns and 1/10ths. With all of these I tend to have a price in mind in comparison to various sellers on here and on line and won’t pay higher … unless something special. People do mention spot price and sovereigns, however, gets to complicated for me!🤔🤔

[AaaGee]

Yep, thats what i do but would feel id like to get the calculations down pat.

Then i can move onto special reverse sovereigns 😄

[James32]

9 minutes ago, AaaGee said:

Yep, thats what i do but would feel id like to get the calculations down pat.

Then i can move onto special reverse sovereigns 😄

I just grab spot from BBP per gram then multiply by the following...

Sovereign 7.32g AGW

1/4oz 7.775g

1/10th 3.11g

1oz 31.1g

I then try and stay under 3% premium 

[AaaGee]

4 minutes ago, James32 said:

I just grab spot from BBP per gram then multiply by the following...

Sovereign 7.32g AGW

1/4oz 7.775g

1/10th 3.11g

1oz 31.1g

I then try and stay under 3% premium 

Brilliant!

I tried it and i get it 😄

Thanks, appreciated 🙏 

[sixgun]

A sovereign is 0.2354 oz of gold and GBP spot is £1,625.48.
So there is 0.2354 x £1625,48 worth of gold at spot price - £382.63.

If we flex that up 3% that is £394.12

Is somewhere between £382.63 and £394.12 the right price for a sovereign? 
Well that sounds like an ok price. Would i pay more? Yes of course i would. Would i sometimes be reluctant to pay £382.63? Yes i might well not want to even pay spot.

What is the sovereign? What is the condition? What does my experience in this coin tell me? What is the collector value?

i am more than happy to pay over £400 for a sovereign if it is in good condition - especially if it is a proof i may well pay quite a bit more. i would rather pay a few quid more than buy a dog shlt coin that will never be worth more than spot. So why not pay spot for the kicked around coin? It is opportunity cost. If i had paid a bit more i could have had the opportunity to get a nice coin and now i have spent my money on a bad coin.

So the 3% can only be a very rough guide. Personally i would rather go for a better coin. i would rather go for something that has collector value in it. Not crazy premiums but collector premium and collector potential - this is where skill and experience comes in. You need an eye for the condition, the mintage, the market. Look at what is coming up on the forum - look at all the coins. See how quickly coins sell. You just get to know when a coin is underpriced and you have got to be quick if you want it or it will be gone. Always remember all your coins and bars will one day be sold - even if it isn't by you unless you have them put them in your coffin and then you get cremated. Those coins and bars are only as valuable as what the next man is prepared to pay. You can only get a feel for that by looking at the forum, dealer sites, price comparsion sites, ebay and so on. What James has said will point you in the right direction but there is a lot of fine tuning on top of that.

[AaaGee]

Thanks for your reply. Yes, plenty of variables. All of my metals are in great condition. Wouldn't want a damaged or scratched coins in my stack.

[Gordy]

try this, it lets you know what you would be paying in regards to % over spot. you just change the spot price and it auto changes the rest for you

Gold Pricing Mk 2.xlsx