Tempt me!

[ABW246]

Hi, I started stacking in the UK 10 days ago. I had a lump sum I wanted to invest for a 10 yr period , and now I will add a piece to my stack every 3 or 4 months. When I write I always write as newbie searching for knowledge gained by the more experienced. So here is my question. I am looking at an investment vehicle and not to "collect". I know I've entered at a peak price in gold, but it is for 10 yrs! So I've tried to diverse my gold but keeping to the best value I can find. My stack contains Britannia's, Sovereigns and a 1oz bar. I haven't been tempted by fractionals or other coins from other countries. Am I missing out? I do like some of the other designs. Can you tempt me into buying coins from different countries, or maybe even fractionals, remember my main goal is a long term investment. 

[HonestMoneyGoldSilver]

The pretty pictures do it for me

Some of the world gold and historical items can speak to your inner soul and thus are more important than money. The thing with world gold is if it's not CGT-exempt then the premiums on those items have to rise 20% faster than the premiums on CGT-exempt gold (like Britannias, sovereigns, QBs, anything with a face value like £10, £100, etc) to justify their purchase if you are planning on holding for 10 years +

For investments you're doing the right thing - buy CGT-exempt products in the UK and give 2 fingers to HMRC

Your timescale might need to be revised though. It's probably better to buy weekly, fortnightly or monthly than every 3 or 4 months. The more frequently you buy the more it smooths out the peaks and troughs in metal prices (DCA - Dollar Cost Averaging).

It's worth paying attention to seasonality. Metal prices traditionally are cheaper in the summer months (June-early September) than they are the rest of the year. Interest rates and geopolitics can also have heavy influence on metal prices so perhaps the best time to buy in the near future is this summer before the Fed/BoE cut interest rates and before WWIII kicks off, ideally

(Not investment advice, please assimilate as many separate and independent sources as you possibly can and come to your own conclusions)

[ABW246]

@HonestMoneyGoldSilver Thank you, that does sound like good advice. Weekly might not be possible, as at my age I'm cutting down my hours at my modest job, and my income with it. Always nice to get good advice!

[HonestMoneyGoldSilver]

5 minutes ago, ABW246 said:

@HonestMoneyGoldSilver Thank you, that does sound like good advice. Weekly might not be possible, as at my age I'm cutting down my hours at my modest job, and my income with it. Always nice to get good advice!

TSF is a great place to read and learn

I see you've already got Silver Membership so you're one of the smart ones!

Buying on TSF you can pick up amazing gold at spot or close to it. If you can save a few % when buying on TSF vs traditional dealer prices, you're already one step ahead

Silver might also be worth considering but don't tell anyone I said that - despite being The SILVER Forum, gold is a lot more popular with the regulars than silver 🤷‍♂️

Best of luck sir with your stacking journey and may it bring you the same joy it's brought to most of us 🙏💪💪

[ABW246]

@HonestMoneyGoldSilver I had it pointed out to me that I could get a 30 day membership for a £1, how could I resist, but as you know there is a good reason to have it. Best of luck with your stacking.

[Brit2023]

1 hour ago, HonestMoneyGoldSilver said:

The pretty pictures do it for me

Some of the world gold and historical items can speak to your inner soul and thus are more important than money. The thing with world gold is if it's not CGT-exempt then the premiums on those items have to rise 20% faster than the premiums on CGT-exempt gold (like Britannias, sovereigns, QBs, anything with a face value like £10, £100, etc) to justify their purchase if you are planning on holding for 10 years +

For investments you're doing the right thing - buy CGT-exempt products in the UK and give 2 fingers to HMRC

Your timescale might need to be revised though. It's probably better to buy weekly, fortnightly or monthly than every 3 or 4 months. The more frequently you buy the more it smooths out the peaks and troughs in metal prices (DCA - Dollar Cost Averaging).

It's worth paying attention to seasonality. Metal prices traditionally are cheaper in the summer months (June-early September) than they are the rest of the year. Interest rates and geopolitics can also have heavy influence on metal prices so perhaps the best time to buy in the near future is this summer before the Fed/BoE cut interest rates and before WWIII kicks off, ideally

(Not investment advice, please assimilate as many separate and independent sources as you possibly can and come to your own conclusions)

👆Concise sound advice.

perhaps consider fractional sovs and Brits as a more regular purchase. The premium is slightly higher but May smooth some price fluctuations. Also easy liquified if circumstances change during your investment cycle.

just thoughts👍🏽

[AppleZippoandMetronome]

It might be worth looking at some of the more "collectable" stuff with the high gold price if you're considering more purchases right now. The gold price suddenly rising tends to shrink the premiums for a time until the price stabilizes and they catch back up. Should be able to find some proofs, special sovs and other items that generally carry a higher premium for what will be an attractive price once those premiums catch up.

[ABW246]

@AppleZippoandMetronome That's really interesting, and something I've not heard mentioned (as I say I'm new to it all). I would have to do some research. I have just noticed the opposite, a 1/10 once coin on a dealers page far cheaper than the equivalent Britannia, because apparently it's not a popular coin. So you must be correct about popular coins to collect.  

[AppleZippoandMetronome]

13 hours ago, ABW246 said:

@AppleZippoandMetronome That's really interesting, and something I've not heard mentioned (as I say I'm new to it all). I would have to do some research. I have just noticed the opposite, a 1/10 once coin on a dealers page far cheaper than the equivalent Britannia, because apparently it's not a popular coin. So you must be correct about popular coins to collect.  

As you embark on this journey its definitely worth keeping in mind that there are terms which are used to describe a coin (finish of it such as proof) which really have no relation to value. Value is driven very much by what people want and its also worth keeping in mind that those wants ebb and flow so something desired today may not be of interest in a few years from now. I'm usually keen to avoid the stuff that is hot today unless I'm thinking of a quick flip because you'll usually pay a higher price for those items and generally they're going to trend down over time. There are some arguably safe bets such as coins with a long multi decade track record of desireability or something like sovereigns which have just so many avenues open to collectors given the amount of time they've been produced combined with things like different mint marks, etc. My own knowledge of those barely scratches the surface and I've been at this for quite a few years now so appreciate it can feel a little daunting.

If you want to go down this route of higher premium coins I'd suggest picking a field that interests you. Spend some time researching all aspects of that particular field then make some purchases. Being from Canada the Ottawa mint marked sovereigns interest me as well as the $5 and $10 Canadian gold coins so I've invested in quite a lot of those alongside bullion products over the years. Finding what interests you makes it a lot easier to dedicate the time needed to ensure you aren't getting ripped off and are investing with as much knowledge as possible.

[ABW246]

@AppleZippoandMetronome Thank you for spending the time to enlighten me. I'm in total agreement about "collectables", I don't know if enough to make a sharp minded flip. As I say my main goal is a 10yr plus investment. I didn't have it in mind to pay premiums on items as I aim is to stack. Since starting "way back" 11 days ago I have started to notice other coins other than Britannias and Sovereigns (which have tax advantages here in the UK), that I like for the design, such as the an Indian  Head. One day I'll splash out and get one for the aesthetic value. Best of luck with your investments. 

[kimchi]

Good tips on gold here! Keep your eyes peeled for an opportunity, it really is a buyers market atm, from very trusted sellers too.

The squeeze on gold premiums is true for a lot of silver too at the moment, plus some would argue price has not shown what it can do yet. It's certainly a sensible insurance imo at this price.  

I watched a video today (OK it was the US where stacking is more popular) and a man was making his first PM investment and going for silver because gold is 'too expensive' - I expect we'll see much more of this (but on the private market, not from dealers with the VAT).

It's also a cheap way to look at some different coins without having to worry about CGT so much (although if you go large of course go for British). Just two listings I've seen in the last day are Jackflash I think selling a nice mix of coins at £26 each, and @fehk2001 selling some really nice bars at £27 (not sure if any left). I was very tempted by both, and sure there are many other great listings, but for weight (rather than quality!) went for the newest Royal Mint Myths and Legends coins myself at just over £25 delivered. Can't go wrong imvho with any of these!

[ABW246]

@kimchi Thank you. I have started keeping my eyes peeled as you say, but because I'm so inexperienced I don't have the confidence in some avenues on the internet. It will come with time, but thank you again and best of luck.

[James32]

3 minutes ago, ABW246 said:

@kimchi Thank you. I have started keeping my eyes peeled as you say, but because I'm so inexperienced I don't have the confidence in some avenues on the internet. It will come with time, but thank you again and best of luck.

Anything you need to know just ask. All answers are only one question away.

[kimchi]

10 minutes ago, ABW246 said:

@kimchi Thank you. I have started keeping my eyes peeled as you say, but because I'm so inexperienced I don't have the confidence in some avenues on the internet. It will come with time, but thank you again and best of luck.

Just as James said, if in doubt just ask

[ChrisSilver]

Hello and welcome to The Silver Forum  

[jackflash123]

Hello, welcome to TSF. You may have entered while gold prices are at a peak, but today's highs are tomorrow's lows.

Most of the members who visit the forum regularly are still buying/selling silver and gold, and sometimes platinum too.

This forum is second to none when it comes to availability of items to purchase, and in most cases with prices that beat the dealers, for very quick delivery. 

There are many forum members who have been stacking/collecting for years, who are very experienced and can offer advice and answer questions.

Good luck with everything 👍

[daca]

Welcome aboard and enjoy the ride!

[Petra]

Welcome to the forum…. great place for the bargains 🤔enjoy 👍

[ConorCoins]

Welcome to the forum

[monkey]

 Welcome @Martoc1970 to the forum!

I hope this place provides to be a handy tool to you. Fantastic place for information, buying and selling! Also lots of other threads to dive down that could be of interest!

Lots of very sound advice given already. I cant really add more it whats being said. You have a thought out plan and seem like the kind of person who things things through before going into action.

The only other ting that dose come to mind might be to study the history of the gold silver ratio if you like the idea of a small amount of trading. Mike Maloney has a strategy of using it to dictate whether o buy gold or silver when he is ready to buy. If it takes over 80oz of silver to buy 1oz of gold, he buys silver to then trade into gold at a later date when the ratio changes say 20% or more. All being well while you wait for the gold silver ratio to change in your favor, your investment is increasing in value.

Just food for thought.

Best of luck in your metals journey!