First fractional

[JunkBond]

Hi Guys,

Following on from my posts on the silver thread @Roy started yesterday, I am getting the ball rolling here.

@kimchi got me interested in fractional gold strategy. I am on a limited budget, lets say £10k max and building a silver foundation stack of 200oz of bullion coins for speculation (to the moon!) the rest will be for gold. Although I have the funds now I am buying monthly amounts as buying is the fun part right! So thinking fractional gold to maximize the purchasing pleasure.

So really just looking for opinions and advice about fractional gold, it's all about bullion for me, sorry you numi guys. I know there is a lot of love for the sovereign here so what of the alternatives, say the 1/4 oz Krug or QB/Brit for example.

Thanks.

[FlorinCollector]

i think sov, qb and brit will be easiest for you to sell when time comes. 

[Roy]

The answer will always be gold sovereigns.

1/4 Brits and QBs are great too but not that common compared to sovs. Often carry a premium.

1/4 Krugs don't come up that often, although a great choice.

Buy monthly sovs but put a bit aside every month too for that big 1 oz brit/krug purchase every now and then. Low premiums and the oz count will soon rise 

[Roy]

@JunkBond a sobering thought...

today, you could buy 10 x 1oz Krugs from HGM for £9990.

You will never, ever buy 10ozs for £10k with fractionals. Nowhere near.

Revise strategy? 

edit: unless spot falls that is 

[HawkHybrid]

I vote sovereigns.

 

imo sovereigns, 1/4 britannias, 1/4 krugerrands that are

available for +3% or less should all be decent buys for

a bullion gold stack.

(on a separate topic it sounds like you haven't worked

out your exit strategy to position yourself for a possible

silver to the moon speculative punt?)

 

HH

[JunkBond]

13 minutes ago, Roy said:

@JunkBond a sobering thought...

today, you could buy 10 x 1oz Krugs from HGM for £9990.

You will never, ever buy 10ozs for £10k with fractionals. Nowhere near.

Revise strategy? 

edit: unless spot falls that is 

Yes @Roy I have seen the 1oz Krugs on HGM, trouble is then I splurge my funds in one go, maximize my gold for £ ratio but then I am left twiddling my thumbs.

I do enjoy tracking down a coin and pulling the trigger even if it's costing me a bit....

[Roy]

Sure, I'm the same but you're flogging a dead horse buying bullion like that.

Spend a bit of time researching and you can buy quality sovs at 'reasonable' prices 

[JunkBond]

12 minutes ago, HawkHybrid said:

 

(on a separate topic it sounds like you haven't worked

out your exit strategy to position yourself for a possible

silver to the moon speculative punt?)

 

HH

I guess to the moon is extreme of me, a g/s ratio of 1:1 may pose a nice problem!

[JunkBond]

21 minutes ago, JunkBond said:

 

I knew there had to be a good reason why everyone is sov mad here, thanks @Roy

Looks like I will be spending Sunday researching sovs then

[tbone]

I'm not in the UK, but apparently most "investment" gold coins are not subject to VAT (someone correct me if I'm wrong).  Here's the link I found pertaining to gold coins that may be investment options for you.  Section 3 has links to 2 pdfs that list a ton of VAT free options.

That said, I like sovs, pre-33 US gold, and old world gold of all types.

 

[metallica73]

7 minutes ago, tbone said:

I'm not in the UK, but apparently most "investment" gold coins are not subject to VAT (someone correct me if I'm wrong).  Here's the link I found pertaining to gold coins that may be investment options for you.  Section 3 has links to 2 pdfs that list a ton of VAT free options.

That said, I like sovs, pre-33 US gold, and old world gold of all types.

 

Yes, investment gold is VAT free. I paid no VAT on a St Gaudens from Apmex, just had to scan and sign a couple of forms from UPS who seemed to know what they were doing regarding importing it correctly. The worst case scenario is you get charged VAT due to your carrier/sender not identifying it correctly but you can always reclaim it later.

I am getting graded semi-numismatic old gold so probably not the focus for the OP - if I was going for cheapest fractionals then Sovs all the way.

[JunkBond]

5 minutes ago, metallica73 said:

 if I was going for cheapest fractionals then Sovs all the way.

So is this purely because they carry the least premium or is there more to it?

[metallica73]

5 minutes ago, JunkBond said:

So is this purely because they carry the least premium or is there more to it?

Bearing in mind there are big Sov collectors on this forum and i'm not one of them i'd say simply because they are the most recognised and easily traded coin in the UK with a low premium and a large collector base too.

I'm collecting US graded gold, but I do i knowing full well it will be harder for me to sell and I would have to wait for the right buyer. But i'm a collector first, then a stacker.

 

[HawkHybrid]

1 hour ago, JunkBond said:

I guess to the moon is extreme of me, a g/s ratio of 1:1 may pose a nice problem!

 

what would you do if silver got back to $50/oz? which

preparations have you made with silver to support what

you will do at that point?

(reaching the previous high is perfectly possible especially

if you are willing to give it a few decades)

 

HH

[JunkBond]

I don't have a few decades, that would be my son's problem. If it happens in my lifetime, just turn silver into gold.

[Markh]

I'd do a split of whatever ratio's between sovereign BU and UK brittannias coins BU in ounces.. best of both worlds.

[kimchi]

4 hours ago, JunkBond said:

So is this purely because they carry the least premium or is there more to it?

You are UK based so ideal for Sovs (though they are spreading in popularity around the world some on here believe - a good thing for us if correct!).

They are liquid, you can always buy at a relatively small premium, can quickly sell them if you need to without much of a loss (and if the timing's right you will get your premium back anyway). They're recognised and accepted in the UK and abroad (e.g. India) - even on here where buyers are savvy and after the smallest margin gain you will always do 'ok'. They will always sell quickly at the right price. As they're bullion, condition isn't so much of an issue compared to 'collector' coins like the Queen's Beasts (which have done well short term for some but Sovs are proven across hundreds of years - those have just been out for a relatively short while and the future of the series is a bit uncertain, and the premiums seem to me based on condition, which modern Sovs are somewhat immune to).

Low premium, liquidity, low loss at sale, a long term history, an established worldwide collector base already which seems to be only growing...need I go on?!!

I can't fill in the history side of things (others here are experts, so I hope they'll chime in - if not just search the forum for 'sovereign') so I just stack bullion where I can. My first Sovs were the bullion 2017s from Atkinson's (a lovely smooth purchase I was very happy with). 2017s have the 200 year anniversary privy mark and I would heartily recommend picking at least one up! I don't much like the 'off (copper)' colour of the modern ones, but pound for pound value I so far haven't seen a better deal in gold myself at that weight.

I see the Beasts as more of a speculation. 1/4 Krugs don't have that much recognition here. The 1/4 Brits I know nothing about, @Numistacker?

Tldr; I am a fan of Sovs, and you will be too if you spend much time browsing around here!

 

[JunkBond]

Thanks for taking the time to get all that down @kimchi It would seem that sovs are indeed the way to go.

Tomorrow will be a day of sov research, I have already started reading the sov info on the Chards site.

[kimchi]

34 minutes ago, JunkBond said:

Thanks for taking the time to get all that down @kimchi It would seem that sovs are indeed the way to go.

Tomorrow will be a day of sov research, I have already started reading the sov info on the Chards site.

Welcome buddy

Don't listen to me though - there are very experienced peeps indeed here, (especially) with Sovs, the Beasts and (I think) a fair fewer on the Brits. Ask away and I hope you get more input!