What would you do in my situation?

[austack]

I am trying to decide whether to save for a while to buy a 1oz coin or buy a Sovereign each month or maybe even 1/10oz or 1/20oz proofs etc? I do enjoy collecting but I would say I lean more towards a stacker, I can spend around £400 a month but was also wanting to flip some coins like releases from the mint, what would you do? continue to buy a full and half sovereign each month or save for a 1oz?

[kimchi]

A Sov each month and the rest on any 'bargains' you come across. no question for me.

Steadily accumulate, and make the most of what you can find that's a little bit 'different'. If nothing presents itself get another half, or put the funds towards a potentially bigger investment the next month (when something interesting may well pop up!).

Just mho and what I'd do

[HawkHybrid]

if you have yet to start stacking then the experience of

buying a sovereign each month should give you a better

feel than buying larger coins. being more involved should

also allow you to create a better strategy for yourself,

more quickly.

 

HH

[BackyardBullion]

Buy a sovereign each month and hold the other £150 then after a few months have passed buy two in one month! 

[reidpj]

Sovereign and a half (so long as you're not paying too much premium for the half - HGM, usually, charge 50% of a full).

[Goldmick]

13 minutes ago, kimchi said:

A Sov each month and the rest on any 'bargains' you come across. no question for me.

Steadily accumulate, and make the most of what you can find that's a little bit 'different'. If nothing presents itself get another half, or put the funds towards a potentially bigger investment the next month (when something interesting may well pop up!).

Just mho and what I'd do

Bang on 

[austack]

Thanks for all the replies, thinking HGM for a full sovereign or buy on here if I can, then either a half or save until next month to buy two sovereigns, hope to get a stack of 10 sovs by June next year, currently have 2 sovs and 2 halves, but one of my fulls is a old head shieldback, wish I could purchase more but I am saving for a house at the same time.

[HawkHybrid]

I see buying bullion sovereigns as a way of saving for

things like a place to live. with the current rate of interest

together with inflation, I'm going to argue that it's a viable

alternative to keeping money in the bank.

 

HH

[darrol]

13 minutes ago, HawkHybrid said:

I see buying bullion sovereigns as a way of saving for

things like a place to live. with the current rate of interest

together with inflation, I'm going to argue that it's a viable

alternative to keeping money in the bank.

 

HH

 

I know this is a bit off topic but you do talk about saving for some where to live ,   If I where to cash in my gold coins  one day  and decided to buy a house,  with the conveyancing would the only thing I have to prove is I sold my gold or would I still have to show where I got the money for my gold . Just wondering because Its not always that easy to prove where all your money comes from but I do class this as an investment but not sure they would .

[KDave]

Keep receipts so you can prove you bought the coins. I have just bought a house funded in part by gold sales and had to prove where the cash came from for money laundering purposes, so I was told. 

[Paul]

@austack

Here is some simple mathematics to use through your life - if you like what you see, it only takes a seed to grow to a massive oak.

This is based on buying one full sovereign per month, at minimum

Start work 18 - retire at 65 (although it will be much higher in years to come)

This gives you x47 working years

x47 times x1 sovereign each month (x12) = x564 sovereigns in your nest egg, without really trying too hard

at current dealer buy back today of roughly £230 per sovereign today gives you nearly £130,000 of value in you stack, if you had started in 1970 (x47 years back)

You will buy on highs but also catch the lows.

Guaranteed x564 sovereigns will be worth "£ something" and will always have value.

plant your first seed from your first months pay packet.

I have used sovereigns as the example, but you could use £ cash savings, pensions, stocks purchases.  

Where you can benefit from compounded interest, just a shame interest % are so low these days.  

Sadly sovereigns dont pay dividends and is a barbarous relic to some 

[austack]

Yeah I am currently 26 and max out my lifetime ISA so I get the £1000 bonus each year and when I want to buy a house I will sell my coins and use my lifetime ISA money, plan on buying a house when I am around 30, will continue after that to buy a coin each month.

[Goldhooked]

11 minutes ago, austack said:

Yeah I am currently 26 and max out my lifetime ISA so I get the £1000 bonus each year and when I want to buy a house I will sell my coins and use my lifetime ISA money, plan on buying a house when I am around 30, will continue after that to buy a coin each month.

Pension!  If you're not already then do it now.  Free money in the form of pension tax relief might not be around for ever!

[austack]

Just now, Goldhooked said:

Pension!  If you're not already then do it now.  Free money in the form of pension tax relief might not be around for ever!

My work has some sort of pension scheme, I pay a small part of my wages towards it and the company contributes even more, should be a decent amount by the time I retire.

[Goldhooked]

3 minutes ago, austack said:

My work has some sort of pension scheme, I pay a small part of my wages towards it and the company contributes even more, should be a decent amount by the time I retire.

Good stuff.  Even more free money from your employer as well as the tax relief.

[austack]

Just now, Goldhooked said:

Good stuff.  Even more free money from your employer as well as the tax relief.

Yes I am in a good position since my girlfriend is also buying a house so we will rent one out and live in the other, I am going to stack only full sovs and save into my lifetime ISA, should be good for the near future.

[Goldhooked]

7 minutes ago, austack said:

Yes I am in a good position since my girlfriend is also buying a house so we will rent one out and live in the other, I am going to stack only full sovs and save into my lifetime ISA, should be good for the near future.

Watch out for additional stamp duty with additional properties.  Because you are not married at the moment you can avoid it if you both own the houses individually, but that could change if you later marry and then decide to move to a larger property while still retaining your second property - its whole other can of worms!  I have a couple of properties rented out but its not something I would necessarily advise getting in to now.  The government have already started their tax assault on landlords and it will only get worse.

[reidpj]

7 minutes ago, Goldhooked said:

Watch out for additional stamp duty with additional properties.  Because you are not married at the moment you can avoid it if you both own the houses individually, but that could change if you later marry and then decide to move to a larger property while still retaining your second property - its whole other can of worms!  I have a couple of properties rented out but its not something I would necessarily advise getting in to now.  The government have already started their tax assault on landlords and it will only get worse.

Not to mention a possible future CGT liability (18% or 28% on property), due to the loss of 'principal private residence' relief.

[austack]

Yeah I will need to think carefully on what to do but one thing for sure is now is a time I will be saving like mad for the next 3 years.

[reidpj]

If you live in the property before renting, then you should be entitled to claim that proposition of time (principal private residence), plus the last 18 months of ownership, as well as 'letting relief', against any CGT liability.

[kimchi]

What is this 'tax' stuff of which some of you speaketh?

[reidpj]

10 minutes ago, kimchi said:

What is this 'tax' stuff of which some of you speaketh?

''Tis a necessary evil, Sire!"

[Goldhooked]

13 minutes ago, kimchi said:

What is this 'tax' stuff of which some of you speaketh?

Its from the original phrase "the axe" or "t' ax" as it was spoken oop North.  The axe used by the powers that be to take a slice of your wares

[kimchi]

On 9/13/2017 at 16:27, Goldhooked said:

Its from the original phrase "the axe" or "t' ax" as it was spoken oop North.  The axe used by the powers that be to take a slice of your wares

Blimey, great grasp of Phoenician (de-phoenician) there!

Luckily I am a eunuch lol

On 9/13/2017 at 16:21, reidpj said:

''Tis a necessary evil, Sire!"

You wouldn’t recognise a subtle plan if it painted itself purple and danced naked down Subtle Street singing “subtle plans are here again”. 

 

[HawkHybrid]

On 13/09/2017 at 13:56, KDave said:

Keep receipts so you can prove you bought the coins. I have just bought a house funded in part by gold sales and had to prove where the cash came from for money laundering purposes, so I was told. 

 

could I ask how you proved any coins that was

bought from other forum members?

 

HH