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Jeffers46

Maintaining purchasing discipline

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23 hours ago, breaktwister said:

Hi Jeffers, how long have you been stacking/collecting?  A new stacker will always have this problem as he does not yet know what strategy to employ, it is a personal decision after all. 

I have been stacking for one year now and I was like a headless chicken for the first 6 months, just buying up everything I liked which lead to budget depletion and feeling of "missing out" on some releases.   This will pass as you come to develop your strategy, whether that is based on series that you like (collecting) or buying close to spot (stacking).   None of us can buy everything! 

 

Hullo BT,

 

I have had an interest in precious metals for over 5 years, but stacking and collecting them is quite a new hobby. Ha ha its good to know that others have been through this too. I like silver at the minute, because of its affordability but being in the UK i am realising you are better off sticking to gold due to the VAT, or going in on a group order from europe. UK silver investors seem doomed to having to pay extra per coin due to the VAT or delivery costs. I cannot fathom how we are not in line with the Us and Europe on this. 

23 hours ago, Jester said:

So based on your post, it sounds like you're more into collecting versus stacking, is that a safe assumption?  

My advice is take some time and decide what it is your passionate about and focus the majority (not all) of your resources there.  I've decided for myself that I really appreciate and am passionate about 19th and early 20th century British coins specifically Sixpences, Shillings and Florins.  That's not to say that I won't pick the occasional Dbl Florin or Half Crown if an exceptional example becomes available for a good price BUT since realizing what I enjoy, I haven't blinked at another modern new release.  And I truly don't feel like I'm missing out.

What is it that you're passionate about?  You mentioned picking up a CI Half Crown at auction earlier this month.  Why did you buy that?  What led you to bid on a very old classic British numismatic?  You mentioned you'd love to own the Rwandan Dog, why?  Do you really love that round or is it because everyone's talking about it right now and it's the FotM?  Are you passionate about a series and you want to focus your resources there?  Do you appreciate the coins from one Mint over another?  Do you prefer the modern releases and appreciate the creativity and innovation that comes with many of the new offerings or are you into classic numismatics?  And it can be a little of everything but at least for right now on a limited budget you'll have to narrow the scope (you're not going to be able to afford 400 yr old HC's and Rwandan Dogs in the same month or even two months on a limited budget).  Every new release is going to be hyped to the moon with some angle that makes it a "Must Own" if you're a collector.  With time, you'll begin to be able to block out the noise.

The good news is, you're in good company...as @breaktwister said, we all, to some degree or another, were in the exact same boat when we started...it's normal.  Enjoy the journey.

Hi Jester,

I was attracted to the half crown because i hadn't seen one come up at my local auction house before, and as soon as i laid eyes on it i thought it was brilliant. To my eye it was in great condition, with a lot of the detail still present. It is made from silver, so ticks that box, but also has a numismatic element that will hopefully increase in time. I did a quick search and from images in recent sales and ebay, the coin seemed to be in very good condition in comparison. So I weighed a few things up and came up with my maximum price (£100), put in a commission bid and won it for exactly that.  I was overjoyed. its great to own a really old coin and imagine who handled it, what is was used to pay for, etc. wow reading this back to myself and it seems i am in the collector category!

 

however i do think there is big financial trouble on the way,a part of me wants as much exposure to gold and silver as possible. so this would point to bullion! 

 

 

what a conundrum to have.  I like the suggestions of having a fixed amount per month and dividing that into 2 pots, bullion and collector/shiny things :)

 

Thanks all!

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On 10/12/2017 at 09:45, KDave said:

If you have a purchasing strategy then stick to it but make a small fixed allocation for other buys. Personally I have a list of coin wants in order of priority and chip away at it every now and again. New releases get added to the list in advance of release to avoid the hype and gouge train :P

 

figuring out priorities and coming up with a list of wants...  Sounds good.

 

Now.Can all the mints stop releasing nice new ones so I can catch up with my list please! :) 

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19 hours ago, HawkHybrid said:

if you must buy something then buy a full/half sovereign.

then each time ask yourself which coins for sale are you

willing to sell your sovereign to raise currency to buy. if at

any time the answer is positive, then do so. it might work?

 

HH

HH you will be pleased to know that i have committed my next buy to a full sovereign. any tips? whats your favourite (affordable) Sov?

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22 hours ago, Thelonerangershorse said:

Yep, I know all too well I should save every penny for the October group order, then I spot something shiney....

Discipline come from within

 

 

If you've seen that South Park episode youll get it ;) 

 

It can be hard though to control ones impulses when it comes to shiny...

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It is a struggle. What HH suggested, buying sovereigns exclusively and using sales of those to buy wants, is a great idea and something I have been doing recently. It works well, adding a layer of effort and time that can make the difference of buying or not. It also works to stop the money in your account vanishing on something else, for example to save for an ounce Griffin I bought sovereigns until I had enough to swap for the ounce. There is a cost in spread to consider but the way money goes at the moment in my case, this was the only way to make it happen. 

I have been selling metals for renovation supplies as a last resort and there is no better way to encourage thrift and double checking necessity than having to sell metals to make a purchase. It is oddly distressing having to part with shiny gold and silver to buy tile adhesive and paint :P

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3 hours ago, Jeffers46 said:

HH you will be pleased to know that i have committed my next buy to a full sovereign. any tips? whats your favourite (affordable) Sov?

 

I used to buy george V sovereigns from hgm when

they were included in the cheapest sovereign pool.

(chosen from the pool, hgm are nice like that) on

average they were good grades but still classified as

circulating sovereigns. I haven't bought anything for

what seams like ages now. I think buying local at the

lowest premium you can find is still a good starting

point. the forum have good deals from time to time.

or post a wanted thread when you're ready.

 

HH

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Just my thoughts as a stacker, more than a collector.

I've been stacking for about 4 months now. In month 1, I went crackers, bought a lot of coins (vat free) and a 250g bar (full vat). Since then it's gradually dawned on me that I need to cool it a bit and not just give in to magpie within! The few rules I now live by are..

- no new / full vat silver, unless it's a very limited mintage (I'll never make my money back on the 250g bar I bought! But I still love it)

- buy mainly bars up to 5oz. Anything that is a good deal, and preferably collectible. (Hand poured etc). Trying to move on larger bars always seems to be trickier...

- buy silver bullion coins when available for as cheap as possible (my personal limit is £17). This way I should always be able to make my money back, within reason...

- try and be patient rather than spend any spare cash instantly. This has allowed me to move in to gold. 

- buy full/ half sovereign where possible as a priority. The rest of my budget I spend on the silver mentioned above.

Not a particularly scientific list of rules, but it's just what's started to become obvious as my stack and experience grows!

Have a good weekend all.

 

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I say this to myself

"remember that even though you want xxxxxx now, another one will come along at some point, and you dont have to buy it now if you dont want to"

It just reminds me that even though i want the instant gratification of getting the coin i have fallen for now, there will probably still be one for sale 5, 10, 20 years down the line.

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