Liquidity: Have 1oz coins had their day?

[Kitalon]

I've been thinking long and hard about which bullion is best to invest in for the long-term (say for the next 10-20, possibly 30 years). It's really tempting looking at these nice and large shiny 1oz 24 carat gold coins like Britannias, Queen's/Tudor Beasts (maybe not the Kruggerands), etc and it makes sense in many ways because the premium is so low, but I do wonder if I'd be making a rod for my back when it comes to cashing in said investments when I'm old and grey. 1oz coins are currently in the region of £1640+ and set only to increase if the current trend in gold continues. When/if they reach the £2000+ mark will it still be so tempting to buy them and will they lose the liquidity they currently have if you want to shift a few at once. Yes you may still be able to take a hit and sell to dealers but losing a good percentage of potential returns on an investment doesn't seem to make a lot of sense.

It does look like full sovereigns and 1/4oz gold coins have the current 'sweet spot' but I wonder if coins like double sovereigns and 1/2oz Britannias are the new 1oz coins (sic) and would be a better investment in terms of realising your assets a couple of decades down the road. 🤔

Edited January 9 by Kitalon

[trozau]

Gold is not an investment tool. It is a hedge for preserving wealth. The buying power of gold has been constant for the past 4 centuries or so. It is the fiat currencies that have been losing their value/buying power hence the increase in price of a troz of gold (in relation to fiat currencies).

Edited January 9 by trozau

[JamesH]

Whilst I don’t own any (yet) I still think 1oz coins and low premiums make sense but if I do venture in to the 1oz gold market, it’ll likely be with a different exit strategy. Sovs that I end up selling will be peer 2 peer whilst I’d likely shift full ounce coins direct to dealers (just like Quantumstacker did the other day with his Brits I believe)

[Bigmarc]

1 hour ago, Kitalon said:

I've been thinking long and hard about which bullion is best to invest in for the long-term (say for the next 10-20, possibly 30 years). It's really tempting looking at these nice and large shiny 1oz 24 carat gold coins like Britannias, Queen's/Tudor Beasts (maybe not the Kruggerands), etc and it makes sense in many ways because the premium is so low, but I do wonder if I'd be making a rod for my back when it comes to cashing in said investments when I'm old and grey. 1oz coins are currently in the region of £1640+ and set only to increase if the current trend in gold continues. When/if they reach the £2000+ mark will it still be so tempting to buy them and will they lose the liquidity they currently have if you want to shift a few at once. Yes you may still be able to take a hit and sell to dealers but losing a good percentage of potential returns on an investment doesn't seem to make a lot of sense.

It does look like full sovereigns and 1/4oz gold coins have the current 'sweet spot' but I wonder if coins like double sovereigns and 1/2oz Britannias are new new 1oz coins (sic) and would be a better investment in terms of realising your assets a couple of decades down the road. 🤔

Can I ask why? As in why gold for 30 years? 

Not a trick question many collect for different reasons. Just curious because if it's retirement then there maybe faster horses. 

[Orpster]

I don't have gold as an investment, I have it to store wealth as I have more faith in it than in fiat

I mostly buy sovereigns as I have a personal preference for them, but I am happy to buy larger coins, I like the 1oz Royal Arms for example.  I store wealth in gold and sell it when I need fiat, for example a large portion of my stack was sold in the last three months of 2023 as I decided I need to pay down my mortgage.  I sold all sorts of different gold, from 1/4 sovereigns and 1/10oz Brits up to 1oz coins, though 80% was sovereigns.  I did not really struggle to sell anything even in a depressed market, though a few bits needed to be put up a couple of times or the price dropped.  I never take into account what I paid for a coin when I sell as it is counter-intuitive, I only ever look at what fiat I need to raise and what I need to sell based on current prices to achieve it, I then sell either what is popular at that time or what I can most easily be parted from.  I will also sell sometimes when I do not need to, this is to make sure I maintain my reputation and feedback as a seller on this and other platforms, and to give me more capital to go coin hunting.  I also take this into account when I buy, so I do not only concentrate on what I love (Victoria Young Head sovereigns in case you were wondering) but I also try and buy a variety of different things and what I think will sell well should I need fiat in a hurry.  Makes for an eclectic stack that's for sure.

Because of my recent sales my current stash is barely worth paying for a lock box, but now my mortgage payments are reduced it also means I can spend more per month replenishing it, happy days  

Edited January 9 by Orpster

[Coverte]

25 minutes ago, JamesH said:

Whilst I don’t own any (yet) I still think 1oz coins and low premiums make sense but if I do venture in to the 1oz gold market, it’ll likely be with a different exit strategy. Sovs that I end up selling will be peer 2 peer whilst I’d likely shift full ounce coins direct to dealers (just like Quantumstacker did the other day with his Brits I believe)

You maybe making the mistake of judging the market too closely to the limited prism of sales which happen here?

I bought a number of 1oz Krugs from a member here who thought a crash was imminent late last year, they all re-sold within a week without problem elsewhere.

[Abyss]

@Kitalon I am in the exact boat you have describe my stack is exclusively has only 1 oz Gold coins. I had sovereigns and even some 1/4 gold coins but eventually sold them all. As for quickest liquidity option for 1 oz Gold coins all you have do visit Chards/Atkinsons see which dealer offers the best buy back rate. You will find if you were to buy a single coin from a bullion dealer and then upon delivery decided to sell back to the same dealer you would lose on average 3% plus postage cost for (to & from) the dealer provided spot price not changed significantly. Reduce these costs even further purchased from reputable Facebook groups/the forum itself. I have also taken 1 oz Gold coins and exchanged them for several percent over spot in India. Already had safety deposit box to me it made sense to stack 1 oz Gold coins due to the convenience of storage (fit 10 into a single Royal Mint tube), the lower premiums (both buy/sell) and the high liquidity of 1 oz Gold coins.

But in the end have you ever held a 1 oz Gold coin? I remembering holding mine and it was very special moment and I knew if I was to buy Gold this was the form factor that made the most sense to me and still does......

Edited January 9 by Abyss

[Fenlander1]

1 hour ago, Kitalon said:

I've been thinking long and hard about which bullion is best to invest in for the long-term (say for the next 10-20, possibly 30 years). It's really tempting looking at these nice and large shiny 1oz 24 carat gold coins like Britannias, Queen's/Tudor Beasts (maybe not the Kruggerands), etc and it makes sense in many ways because the premium is so low, but I do wonder if I'd be making a rod for my back when it comes to cashing in said investments when I'm old and grey. 1oz coins are currently in the region of £1640+ and set only to increase if the current trend in gold continues. When/if they reach the £2000+ mark will it still be so tempting to buy them and will they lose the liquidity they currently have if you want to shift a few at once. Yes you may still be able to take a hit and sell to dealers but losing a good percentage of potential returns on an investment doesn't seem to make a lot of sense.

It does look like full sovereigns and 1/4oz gold coins have the current 'sweet spot' but I wonder if coins like double sovereigns and 1/2oz Britannias are new new 1oz coins (sic) and would be a better investment in terms of realising your assets a couple of decades down the road. 🤔

I can understand your thoughts I personally have exchanged sold all my fractional coins and now exclusively stack 1oz, there are many reasons for this decision but I prefer to have 1oz Britannia's over other denominations.

When and if the time comes to liquidate I am confident that at spot price gold will always sell, when I purchased alot of sovereigns 6mths ago the premium was at 7% for memorials now it is possible to get them at 1-2%.

Dealers don't pay that much for sovereigns either in comparison to their sale price, I think it is a personal preference but I have found always follow your gut.

[dicker]

Premiums for Sovs and Brits is roughly similar.  A mix of the two would make sense.  Sovs are easier to liquidate but Brits can be a little harder but still sell well.

Horses for courses!

[Sovhead]

Loads of 1oz coins sell on here regularly just buy what you like.

You can sell gold anytime to anyone there will always be interest.

[ArgentSmith]

Spread on 1oz gold generally less than Sovs if buying here and selling to a dealer. Just from my observations.

[Kitalon]

I'm less concerned about how things are right now and more interested about how it might turn out in the future with regard to the liquidity of larger amounts bullion in general. I understand that assets can always be liquidated though dealers below spot if necessary. I'm just wondering about how the increasing value of larger items (such a 1oz of gold) may continue to perform in private markets.

It's not inconceivable that we could see prices of 1oz Britannias reach £2000+, and sovereigns have a spot price of £500. How long it takes to reach that stage I cannot say, it may not of course, it could plateau or even drop. But given the current trend it seem that gold will continue to increase (yes, as currency is devalued).

I suppose what I'm looking at is a long-term exit strategy that offers the best returns and not wishing to commit to sizes of bullion that become harder to shift in time as the relative value of gold increases. This is working along the lines of seeing if gold can work both as a hedge against inflation and a store of wealth as well as a long term investment that potentially has better returns than only keeping money in savings. Of course there are better methods of investment which can yield higher returns but this way seems more fun.

 

P.S If someone can tell me how to get into these Facebook groups please ping me a message. I've already scouted out all my local sources in town (and found where I can buy sovereigns for about 5%) but I'd like to know more about these online marketplaces too.

[Orpster]

One of the forum members @NGMD admins a group on Facebook, maybe start there, if you bribe him he may let you in (the groups are all private)

These are the main ones I use

[Stuntman]

If you're stacking bullion rather than collecting it, base your exit strategy on selling it all to a dealer.  Then anything you get above that via other routes is a bonus.

Dealers can, and will, buy huge amounts of gold in one go.  I doubt that even (say) Abyss's stack would make (say) Chards or Atkinsons think twice about buying it all in one go.

So I'd say buy and stack what you like, whether it's 1oz coins, sovereigns or whatever.  Minimise your premium over spot on the way in.

[Ted1945]

speaking from experience

When you get old you’ll appreciate the bigger coins 

easier to see the detail of the designs and find  them

that is of course if you can remember where you put them in the first place 

 

 

[SeverinDigsSovereigns]

Yes they have serious liquidity problems. I'll recycle your 1oz for 90% of spot and spare you the misery

17 minutes ago, Ted1945 said:

speaking from experience

When you get old you’ll appreciate the bigger coins 

easier to see the detail of the designs and find  them

that is of course if you can remember where you put them in the first place 

 

 

On the riverbed where that boat wreck is?

[MrStacker]

I like the best of both worlds. I lean more towards sovereigns. I guess you can look at it this way: quick and easy liquidity = sovereigns make sense. Long term wealth preservation and benefit from better overall prices = 1oz big boys

CGT only coins is very important as well. Dealers you can sell 1oz and sovs you will have several avenues to sell much more easily instead of the stealers dealers.

Yes I also agree with whatever floats your boats. You have to love it or enjoy what you are stacking or collecting. 😇

[Kitalon]

4 hours ago, Abyss said:

But in the end have you ever held a 1 oz Gold coin

I have not. It's only 2 months since I first saw a sovereign, let alone knew what it was or how to identify one. I now have 1 sovereign and 1 1/4 oz gold coin for comparison. Ironically I've touched neither because they're proof coins. Sigh! I suppose I'll just have to buy a 1oz coin now just to find out what all the fuss is about. 😄

[Orpster]

2 minutes ago, Kitalon said:

I have not. It's only 2 months since I first saw a sovereign, let alone knew what it was or how to identify one. I now have 1 sovereign and 1 1/4 oz gold coin for comparison. Ironically I've touched neither because they're proof coins. Sigh! I suppose I'll just have to buy a 1oz coin now just to find out what all the fuss is about. 😄

Chards are doing random date Brits pretty reasonably 

 

[Fenlander1]

1oz coins are like pringles once you pop you just can't stop

[SiCole]

1 hour ago, Orpster said:

One of the forum members @NGMD admins a group on Facebook, maybe start there, if you bribe him he may let you in (the groups are all private)

These are the main ones I use

I can smell the vouches from here.

[Kitalon]

22 minutes ago, Orpster said:

Chards are doing random date Brits pretty reasonably 

 

Thank you. That is a good price. But alas I'm trying not to get distracted by shiny things and be objective in my market research. I have my eye on a couple of specific double sovereigns for slightly less. I will build up to it and get at least 1 1oz Britannia in due course (although I do prefer the look of the current Tudor Beasts - it's a pity you can get them in 1/2oz tbh).

[Uksilverstackers]

6 hours ago, Kitalon said:

1oz coins are currently in the region of £1640+ and set only to increase if the current trend in gold continues. When/if they reach the £2000+ mark will it still be so tempting to buy them and will they lose the liquidity they currently have if you want to shift a few at once.

I expect people were thinking the same thing when 1oz coins were £500 😉

[Kitalon]

Were they really ever that cheap? 😶

[Uksilverstackers]

 

5 minutes ago, Kitalon said:

Were they really ever that cheap? 😶

$695 an ounce in 2007.....

$100 an ounce in 1973....

Historical Gold Price