I’ve Been Buying The Wrong Things. Need To Get Back On Track

[Organics]

Dear TSF,

Just thought I’d share the reasons I started my precious metals buying journey, and how I’ve deviated away from my original goals. 

I decided to start buying Gold and Silver several years ago, as a form of savings plan for my family and I. Specifically as a nest egg for my two small boys, who are 5 and 8. I thought by the time they’re 18 they’ll have a good amount. 

My plan was to buy monthly what I could afford and buy 999 gold or silver, or sovereigns. This was working well and I built up quite a stack. However as time went on I got lured into buying more collectible and premium pieces. 

I’ve realised that I’m not a collector and that I’ve been led astray from my original goals by the shiny metal. If something was to happen to me, the last thing I want is my family having to deal with getting the best price for the premium coins. I want them to be able to cash in easily and quickly if they need the cash. 

So I’ve decided that I’m going to stay away from highly collectible and proof coins (unless I get them at normal bullion prices) and stick to how I started. I’ll start selling the collectibles bit by bit, and putting the funds into my original purchasing requirements. 

I’ve also decided to substantially downsize my silver stack, as I have just too much, and storing it is becoming a hassle. 

Just wondering if anyone else has been on a similar buying journey or if anyone has any further advice? 

[Darr3nG]

48 minutes ago, Organics said:

• decided to start buying Gold and Silver
• buy monthly what I could afford and buy 999 gold or silver, or sovereigns
• got lured into buying more collectible and premium pieces
• realised that I’m not a collector and that I’ve been led astray from my original goals
• decided that I’m going to stay away from highly collectible and proof coins
• decided to substantially downsize my silver stack, as I have just too much, and storing it is becoming a hassle. 

Just wondering if anyone else has been on a similar buying journey or if anyone has any further advice? 

Are you sure we're not the same person???

[Sovhead]

6 minutes ago, Darr3nG said:

Are you sure we're not the same person???

That’s 3 of us now…..

[Dazlenk]

4 minutes ago, Sovhead said:

That’s 3 of us now…..

Make that 4! 🙈 Sounds all too familiar.

[Darr3nG]

Welcome to Silver-Anonymous

[AaaGee]

Make it 5!

Just 2 proof sovereigns in my stack but lesson learnt. Will be sticking to bullion from here on in.

 

Same with the silver. Went mad on the stuff. Sold a load recently. Just have a hand full of 22s, 23s and may buy a few 24s later this year. Thats it.

 

Oh, and a few silver Proof sets but thats just a few pieces i have on show.

[pricha]

Sounds like me 😆 but i  do have an interesting Victoria shilling collection as a pass time. Its a very small collectable market compared to sovereigns and prices asked by dealers would never be recovered . Better left to a specialist auction.  Sovereigns pain simple are the way for building a nice nest egg . But modern proofs have seen a terrific increase in the last few years so it's hard to argue against them. I'm not keen on them as they are expensive to start with and the packaging is ridiculous unless sent off to NGC.  Another argument would be forget bullion Sovereigns and buy slabbed Mint State old coins. Quality over quantity will always sell in the sovereign market if they know where to go.  Its not an easy question really. 😕 

[Maxx546]

I've been the same up to a couple of years ago  I only had 3 proofs in my collection..which I got at a good price around spot price... but got side tracked buying Jubilee and memorial proof sovereigns and sets , all together I have spent around £10,000 on these proof sovereigns ... I still think these are a good buy for the future..But no more proofs for me from now on ...back to buying bullion as I originally started 

[Gordy]

yeah. I'm in that club too!!!!! 

still look for collectables... but try to be good

[JamesH]

I definitely started, looking to store a little wealth for the future, that simply ‘sat outside’ the system. Intended to only collect bullion but also got sidetracked as I became more interested in what I was collecting. Personally, a few proofs are a nice distraction and make the hobby a little more fun 👍🏼

[Darr3nG]

1 minute ago, JamesH said:

a few proofs are a nice distraction and make the hobby a little more fun

That's how it starts...  

[Petra]

Unfortunately lots of people are in the same situation 🤔

I have tried to stop buying more silver but keep getting tempted back, gold, need to stick to my main bits …. 1/10 Britannia, half and full sovereigns. Trouble is, even with gold it is easy to get tempted. Not really sure now why I bought any proof sovereigns, probably because they were a decent price🤔😮🙁

[CazLikesCoins]

5 hours ago, Organics said:

Just wondering if anyone else has been on a similar buying journey or if anyone has any further advice? 

Nope. I knew from the start if I went into proofs and collectables I'd end up with a less gold - albeit in fancy boxes and pretty labels, and spend more money than if I just bought bog old gold bullion.

.... Then I gave in and ended up slavering at overpriced coins sealed in Tesco shoplifters boxes because having pure gold encased in recycled plastic made them - and me - feel even more special.

Luckily I haven't needed to sell my legs yet to buy the latest Charles effigy. Not sure the long term value is there compared to rolling around in an Asda trolley.

[CazLikesCoins]

47 minutes ago, Petra said:

Unfortunately lots of people are in the same situation 🤔

I have tried to stop buying more silver but keep getting tempted back, gold, need to stick to my main bits …. 1/10 Britannia, half and full sovereigns. Trouble is, even with gold it is easy to get tempted. Not really sure now why I bought any proof sovereigns, probably because they were a decent price🤔😮🙁

I love those tiny fractionals. I can take the edge of the fever and still have dinner. 🤣 

[pricha]

Goes without saying avoid anything from the likes of the London mint. I recently found out a elderly person just  paid ( in instalments) £6,000 for a 1 Oz 24ct gold " sovereign " . 

Whatever mistakes we made or make I don't think anything could be as  disastrous as that. 

 

Edited January 26 by pricha

[Silverlocks]

6 hours ago, pricha said:

Sounds like me 😆 but i  do have an interesting Victoria shilling collection as a pass time. Its a very small collectable market compared to sovereigns and prices asked by dealers would never be recovered . Better left to a specialist auction.  Sovereigns pain simple are the way for building a nice nest egg . But modern proofs have seen a terrific increase in the last few years so it's hard to argue against them. I'm not keen on them as they are expensive to start with and the packaging is ridiculous unless sent off to NGC.  Another argument would be forget bullion Sovereigns and buy slabbed Mint State old coins. Quality over quantity will always sell in the sovereign market if they know where to go.  Its not an easy question really. 😕 

Some modern proofs, but an awful lot of proofs seem to settle down to not much more than an equivalent bullion on the secondary market.  I've seen plenty of proof sovs going at not that much over £400.

[pricha]

29 minutes ago, Silverlocks said:

Some modern proofs, but an awful lot of proofs seem to settle down to not much more than an equivalent bullion on the secondary market.  I've seen plenty of proof sovs going at not that much over £400.

To be honest I don't really notice the huge prices apart from the obvious,  2017 , 2016 etc. There was a few dates that shocked me recently but forgot what they were now. It's definitely a specialist market. The only proofs I ever had went a strange hazey colour 😆.  That put me off along with the fact 6 coins would fill the safe. 

 

[Silverlocks]

1 minute ago, pricha said:

To be honest I don't really notice the huge prices apart from the obvious,  2017 , 2016 etc. There was a few dates that shocked me recently but forgot what they were now. It's definitely a specialist market. The only proofs I ever had went a strange hazey colour 😆.  That put me off along with the fact 6 coins would fill the safe. 

I've got a handful of proofs but I never bought them new or at anything close to retail prices.  Really, I don't buy many proofs, only if they come up here at a decent price.

[dicker]

I’m still buying Morgan’s (but only nice ones) and the occasional Kook.

Other than that no silver these days.  

[Organics]

WOW! 😳 Didn’t think so many would either be, or have been, in a similar situation to me. It’s interesting to read all the comments. Thank you 🙏 

When I first started I had no idea what to buy, but was advised to go for 1oz gold and 1kg silver as the premiums were lower. Now like many I prefer the fractional gold as it seems more liquid and have stopped buying silver. 

The question now is, which I guess is probably for another topic, when is it enough? 🤔. 

[Organics]

7 hours ago, Darr3nG said:

Welcome to Silver-Anonymous

I am most definitely addicted to the shiny stuff. We watched Madagascar 2 the other day with my two boys, and they were like “daddy look Gold”. Lol 😂 

[Petra]

2 hours ago, CazLikesCoins said:

I love those tiny fractionals. I can take the edge of the fever and still have dinner. 🤣 

🤔😮oi! Not so tiny! If you want tiny you should see my 1/40ths😮🤔

Edited January 26 by Petra
spell

[blackadder]

9 hours ago, Organics said:

However as time went on I got lured into buying more collectible and premium pieces. 

Done the same and ended up with boxes and sets,taking up alot of room storing it all.

And most of it dives in price.

 

[MrStacker]

Welcome to the club.

I've been tempted so many times (especially on TSF) to jump into the proof game seriously but always hold back. Bullion is the way forward as an alternative savings method and long term investment to keep out of the "system". I, too, do this for my children and want an easy access out for them when they need to liquidate. Sometimes temptations and excitement can get the best of us in this beautiful hobby/passion but one must always try and stay focused on the end goal. Thanks for sharing @Organics

Happy stacking!

[refero]

I am a collector and happy to be. I consider what i am paying as numismatic value over spot as a fee to enjoy something rare, or uncommon, full of history or symbolic value. Still, When and if i will ever decide to sell i am pretty sure i ll get all my money (if no more) back