Jump to content
  • The above Banner is a Sponsored Banner.

    Upgrade to Premium Membership to remove this Banner & All Google Ads. For full list of Premium Member benefits Click HERE.

  • Join The Silver Forum

    The Silver Forum is one of the largest and best loved silver and gold precious metals forums in the world, established since 2014. Join today for FREE! Browse the sponsor's topics (hidden to guests) for special deals and offers, check out the bargains in the members trade section and join in with our community reacting and commenting on topic posts. If you have any questions whatsoever about precious metals collecting and investing please join and start a topic and we will be here to help with our knowledge :) happy stacking/collecting. 21,000+ forum members and 1 million+ forum posts. For the latest up to date stats please see the stats in the right sidebar when browsing from desktop. Sign up for FREE to view the forum with reduced ads. 

Calculating Spot price +or-

Recommended Posts

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!🤔🤔

Link to comment
Share on other sites

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.

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...

Cookies & terms of service

We have placed cookies on your device to help make this website better. By continuing to use this site you consent to the use of cookies and to our Privacy Policy & Terms of Use