Newbie with some questions

[Cubic]

Hello all,

I've been considering buying some gold for a while to stick in the safe for a decade or 2. I have a couple of questions though if anyone would be kimd enough to help.

First, after having a quick read through the forum there seems to be a concensus that prices are going to tumble this year, therefore the question is should I buy now or wait? I know nobody has a crystal ball and it's educated guess work but it's a question worth asking.

Second, I think I've decided on 1oz Britannias. Is this a good starting place or are there better options? 

Im probably looking at initially buying 2 coins and then maybe 1 every other month after that if this makes a difference.

Third, I've looked at Tavex to make.my purchase, again, is this the best place to go or can I get it cheaper elsewhere?

Thanks in advance 😀

[SeverinDigsSovereigns]

11 hours ago, Cubic said:

Hello all,

I've been considering buying some gold for a while to stick in the safe for a decade or 2. I have a couple of questions though if anyone would be kimd enough to help.

First, after having a quick read through the forum there seems to be a concensus that prices are going to tumble this year, therefore the question is should I buy now or wait? I know nobody has a crystal ball and it's educated guess work but it's a question worth asking.

Second, I think I've decided on 1oz Britannias. Is this a good starting place or are there better options? 

Im probably looking at initially buying 2 coins and then maybe 1 every other month after that if this makes a difference.

Third, I've looked at Tavex to make.my purchase, again, is this the best place to go or can I get it cheaper elsewhere?

Thanks in advance 😀

1) there isn't a consensus that prices will tumble. There will most likely be rate cuts coming which drive up commodities, and there might be wars hither and thither which also drive up prices. In any case, consensus on an online forum should not form your investment strategy, but I do think it's a good idea to regularly buy physical gold at a rate you could afford to.

2) 1oz at £1600 ish might be too large a sum for many people. We always recommend smaller units because they're easier to liquidate. If you're in the UK you will also benefit from CGT exemption of UK legal tender coins. A small and received UK legal tender gold is the sovereign (post 1837), and that's where most people start their journeys. 

Edit: sovereigns dated before 1982 have a silky lustrous look and are easier to shift in my opinion. Sovereigns dated between 1918 and 1932, and 1957-1982, tend to exist in very good condition and are visually attractive. From a stacker's perspective this shouldn't matter, but there are some conditionally aware stackers, and so it might help resale if your sovereigns are in good condition. Alternatively, try Victoria shield sovereigns (1838-1887, but practically 1842-1884) which sell well regardless of condition.

Edited January 3 by SeverinDigsSovereigns

[Cubic]

30 minutes ago, SeverinDigsSovereigns said:

1) there isn't a consensus that prices will tumble. There will most likely be rate cuts coming which drive up commodities, and there might be wars hither and thither which also drive up prices. In any case, consensus on an online forum should not form your investment strategy, but I do think it's a good idea to regularly buy physical gold at a rate you could afford to.

2) 1oz at £1600 ish might be too large a sum for many people. We always recommend smaller units because they're easier to liquidate. If you're in the UK you will also benefit from CGT exemption of UK legal tender coins. A small and received UK legal tender gold is the sovereign (post 1837), and that's where most people start their journeys. 

 

Thank you, appreciate the reply

[Orpster]

1 hour ago, Cubic said:

there seems to be a concensus that prices are going to tumble this year

Not sure where you have seen that but I dont think this is likely, and if you are putting it away for over a decade I don't see it matters too much,

I think your plan to buy over time is sound and will let you cost average, so a tumbling price would not really have an major impact anyway.

Don't listen to me though, I am a gold-bug

[17RSB]

Sound advice from the others and approve of the monthly method of purchasing.

One thing to be mindful of is if the gold price keeps going up your monthly 1oz coin will start to get expensive and if you have to liquidate it may be harder. This was the main reason I opted for sovereigns. 

Also in regards to where to purchase I d suggest upgrading your membership to Silver and then you can use the Compare tab where all the dealers are and it shows best price for a variety of coins (if your going down the dealer route). Or you can purchase off the forum and get lower premiums too. 

Good luck and welcome to the community - i m a newbie and everyone on here are a good bunch who help out and provide wisdom

[Silverlocks]

1 hour ago, SeverinDigsSovereigns said:

[ . . . ]

2) 1oz at £1600 ish might be too large a sum for many people. We always recommend smaller units because they're easier to liquidate. If you're in the UK you will also benefit from CGT exemption of UK legal tender coins. A small and received UK legal tender gold is the sovereign (post 1837), and that's where most people start their journeys. 

This ^^^^^^

1oz Krugerrands made sense in the 1970s when gold was relatively much cheaper, and it doesn't necessarily hurt to have some 1oz coins in your stack as long as you don't overpay for them, but . . .

You may have heard a term 'exit strategy'.  This is just a fancy way of saying 'how am I going to flog my gold if I need to raise some cash?'.  Broadly, there are two approaches to this:

1. Sell back to a dealer.  This will give you the lowest return, but is convenient.  In this case, larger items like 1 oz Brits or Krugerrands make some sense, as the spreads will be a bit lower overall.  Still, I suggest you still don't buy individual items bigger than 1 oz for various reasons, not the least of which being that RMSD only insures up to £2,500, and courier services that will insure bullion are significantly more expensive.
2. Sell on the secondary market.  This will give you a better return, but you have to pay attention to the liquidity of the items - i.e., how easy are they to sell.  In this case, smaller items like sovereigns or 1/4oz coins are much easier to shift than 1oz coins as there are far more people who can afford one or two sovs than can afford £1,600+ for a 1oz coin.  I've seen folks rock up here with 50 or 100 sovs and flog them all in days or even hours.  The market is a bit slow at the moment, but people will still buy sovereigns.

I suggest you do a bit of homework about this and then work out what you want to buy.  If you get into sovs, you will likely want to do a little bit of homework about their numismatics as there are a few gotchas.  What I will say is that I have a type 2 exit strategy and I haven't bought anything bigger than 1/4 oz or so yet.  I may get a few 1oz coins, but it will likely only be a small minority of my stack.    

[17RSB]

 

7 minutes ago, Silverlocks said:

This ^^^^^^

1oz Krugerrands made sense in the 1970s when gold was relatively much cheaper, and it doesn't necessarily hurt to have some 1oz coins in your stack as long as you don't overpay for them, but . . .

You may have heard a term 'exit strategy'.  This is just a fancy way of saying 'how am I going to flog my gold if I need to raise some cash?'.  Broadly, there are two approaches to this:

1. Sell back to a dealer.  This will give you the lowest return, but is convenient.  In this case, larger items like 1 oz Brits or Krugerrands make some sense, as the spreads will be a bit lower overall.  Still, I suggest you still don't buy individual items bigger than 1 oz for various reasons, not the least of which being that RMSD only insures up to £2,500, and courier services that will insure bullion are significantly more expensive.
2. Sell on the secondary market.  This will give you a better return, but you have to pay attention to the liquidity of the items - i.e., how easy are they to sell.  In this case, smaller items like sovereigns or 1/4oz coins are much easier to shift than 1oz coins as there are far more people who can afford one or two sovs than can afford £1,600+ for a 1oz coin.  I've seen folks rock up here with 50 or 100 sovs and flog them all in days or even hours.  The market is a bit slow at the moment, but people will still buy sovereigns.

I suggest you do a bit of homework about this and then work out what you want to buy.  If you get into sovs, you will likely want to do a little bit of homework about their numismatics as there are a few gotchas.  What I will say is that I have a type 2 exit strategy and I haven't bought anything bigger than 1/4 oz or so yet.  I may get a few 1oz coins, but it will likely only be a small minority of my stack.    

You raise a great point about RMSD and the insurance ceiling. Interesting to see what happens when gold reaches that figure. 

Edited January 3 by 17RSB

[Gordy]

4 hours ago, Cubic said:

First, after having a quick read through the forum there seems to be a concensus that prices are going to tumble this year

as others have already said.... where? Dont listen to the odd member hoping for a drop.. 

cost averaging is a good start and for me, Sovs would be a better investment than 1oz Brits, you have pretty much immediate liquidity if you need to raise some funds quickly

Get a membership, it pays for itself in no time

[Zhorro]

5 hours ago, Cubic said:

 

First, after having a quick read through the forum there seems to be a concensus that prices are going to tumble this year...

Yes, not sure where you got this from, and as seen from the responses, many people are optimistic.   Indeed, I've just seen this on the ZeroHedge website:

Gold Prices Predicted To Hit Record Highs Of $2,300 In 2024 | ZeroHedge

[ZRPMs]

Welcome to the forum. My opinion, for what it's worth, Aligns with what has already been said. In the UK CGT free sovereigns make loads of sense for the foundation of a stack. They're relatively easy to liquidate when the time comes. A possibility of finding a hidden gem, speaking in numismatic terms. Its a great idea to spread your purchases over time. Choosing sovereigns also give you the opportunity to buy 2 a month instead of 1 ounce every other.

[Bigmarc]

5 hours ago, Cubic said:

Third, I've looked at Tavex to make.my purchase, again, is this the best place to go or can I get it cheaper elsewhere

Yes tavex is good, bought from them a few times. It's good to ask the question most newbies go to bbp. 

[Bigmarc]

1 hour ago, Gordy said:

Dont listen to the odd member hoping for a drop.

Equally don't listen to the endless moon posts.

[Sovhead]

Stick to Sovs as has already been said, buy all year round don’t dwell waiting on dips it’s too erratic.

When the price was high 2021 it got higher a year later and so forth, I bought my first sov in March 2021 it cost me £330 think gold was at £1250oz it’s now at £1600 in just under 3 years.

[Gordy]

40 minutes ago, Bigmarc said:

Equally don't listen to the endless moon posts.

yep, indeed, research, research, research

[LemmyMcGregor]

If you like the 1oz Britannia and want to go for it, just go for it. If you want to experiment and go one month for a Britannia and another for a couple of Sovereign, why not? You're the one paying for it, give it a shot and see what you like, once you have both in hand maybe you'll like one more than the other.

Personally I go for Sovereign myself, partly because of aforementioned reason that are easier to get rid, partly because I prefer 22k gold, so for it's Sovereigns and Kugerrands as to me they look a lot prettier than the 24k counterparts, but mostly because on my budget it's either half or full sovs compared to quarter or 1/10oz, and sovs command a much cheaper premium than fractional gold.

Nobody on here in his right mind believes that gold is going to crash; drop temporarily if the economy restarts, yes, crash, not a chance.

As everyone and their cats has already mention, don't chase highs and lows, just buy regularly every month.

As for sites, Tavex is good and they have their moment, for your quantities I'd get a membership here and buy whenever a good deal comes up, at the same time, spend some time researching all the major dealers, they're not many.

[Cubic]

Thanks for all the replies, some great info! I think I might just do the suggestion of the 1oz coin one month and 2 sovs the following.

Who are the main reliable dealers that people use?

[iacabu]

There are some very well priced Brits on the forum right now, I'd suggest those personally 

[pricha]

Stick with Royal mint coins. The government are getting more and more desperate to get taxes ( from the plebs anyway ) , notice the latest crack down on EBay etc. Sovereigns and Britannias are Capital gains free , and with your time span that's worth thinking about. 

[pricha]

I should say stick with coins not bars for the same reason. 

[Sovhead]

5 minutes ago, pricha said:

I should say stick with coins not bars for the same reason. 

Yep, I’ve always maintained stick with British coins not bars for CGT it makes sense.

Now I’ve got Swiss coins, bars, French coins and Mexican 🤷‍♂️🤦‍♂️

[Cubic]

36 minutes ago, iacabu said:

There are some very well priced Brits on the forum right now, I'd suggest those personally 

Where do I see these?

[Earthmetal]

39 minutes ago, Cubic said:

Thanks for all the replies, some great info! I think I might just do the suggestion of the 1oz coin one month and 2 sovs the following.

Who are the main reliable dealers that people use?

Here's the top six from my list of websites:

 

[Earthmetal]

As a slight aside, I wonder why the half-once coins are relatively ignored? 1/10, 1/4 & 1oz are all more popular.

[iacabu]

11 minutes ago, Cubic said:

Where do I see these?

 

 

[Lancashire1]

If gold is going up still buy a little bit. If gold crashes buy a lot 🤣. 

Just buy what turns you on with the money you can afford at the time