calculating your averages

[gravsey]

Hey guys just a quick question for the newbie, I was wondering when calculating the average price you spend on silver or gold etc per ounce or whatever measurement you buy it in. How do you guys do it do you include the Premium prices you pay for your precious metals or do you leave it out I know this probably seems like a silly question but I'm just curious to know

Cheers guys

Jimmy

[Danny-boy]

I put everything on mine.

[Agpanda]

Same here, i put all in ex cost for shipment etc.

[Kman]

I know this isn't exactly what you asked, but personally my whole outlook is more geared around how much can I sell things for rather than how much did I pay

 

So for me cost per oz is currently irrelevant. 

[gravsey]

I know this isn't exactly what you asked, but personally my whole outlook is more geared around how much can I sell things for rather than how much did I pay

So for me cost per oz is currently irrelevant.

Can you go into further detail about what you mean? Cheers

[daz]

I'm more bothered about the price I pay for a individual coin and trying to get it as cheap as possible . If I was interested in my price per ounce I would only bulk buy phillis and eagles etc and to me tbh that would be a bit boring

[Kman]

Can you go into further detail about what you mean? Cheers

 

Well would I rather buy a 1 oz gold bar for spot, that would only ever be worth spot

 

Or would I rather wait till HGM have some numismatic coins 3-15% over spot that I know in all likelihood I could sell instantly for a profit, or at very least get my money back + be able to rest easy with the knowledge that down the years they're probably going to gain more of a premium whether spot is up or down..

 

I'm going to wait for a numismatic bargain allll day long

[gravsey]

Well would I rather buy a 1 oz gold bar for spot, that would only ever be worth spot

Or would I rather wait till HGM have some numismatic coins 3-15% over spot that I know in all likelihood I could sell instantly for a profit, or at very least get my money back + be able to rest easy with the knowledge that down the years they're probably going to gain more of a premium whether spot is up or down..

I'm going to wait for a numismatic bargain allll day long

so whay types of coins should I look out for im tjinking of buying a few pandas of stg from this year from what I gathered from my first post would you consider them the type of coins that will increase in value over the years????

[Pete]

I keep a spreadsheet listing with the price paid per coin including shipping & all associated costs.

If I bulk buy I allocate a portion of the shipping cost by weight.

That gives me a true "net landed cost" per coin.

 

For all bullion the average is a straightforward calculation but for rarer coins, numis or proofs you should not average the cost unless they are all the same.

[Kman]

 

so whay types of coins should I look out for im tjinking of buying a few pandas of stg from this year from what I gathered from my first post would you consider them the type of coins that will increase in value over the years????

 

I honestly don't know

 

I'm devoting my time to trying to learn about sovereigns, I enjoy having them and they can sell for amazing premiums

 

They tick all the boxes for me personally.

 

What ticks the boxes for you may be something different, but as long as you enjoy learning about them, learn as much as you can so that you can learn to recognise a bargain and take advantage. 

[sovereignsteve]

so whay types of coins should I look out for im tjinking of buying a few pandas of stg from this year from what I gathered from my first post would you consider them the type of coins that will increase in value over the years????

Look at what coins are selling for good premiums now and look at what you could have bought them for at release. If you believe this can be repeated with the coins being released now, these are the coins to buy.

However, some of today's expensive coins were under the radar when released and either had low mintages or sold in low numbers. This aspect needs to be weighed against the numbers being sold for today's coins before you decide which coins to buy. At the end of the day it's like any trading; buy low sell high and buy what you think will be rare in the future or what people will want to buy.

I realise this is probably obvious to many people but I'm sure we all wish we could go back and buy some of today's rarer, expensive coins when they were new and cheap!

[sovereignsteve]

However, if you don't feel confident predicting the future, just buy stuff you like and will enjoy owning.

[TCSilver]

I don't keep track, I'll probably be depressed to see how much my investment went down in value. I do however have a friend who does keep track and he swears by this spreadsheet. 

 

http://goldsilverstocks.info/GOLDSILVERSPREADSHEET.html

 

It auto updates the value of your collection based on the price of gold/silver/etc

[SilverPirate]

I take in the cost of the coin/round and P&P. i add this to the total spent so far and divide by the ounces in the stack. Job done.Old school in a note book.

[TanAg]

My average includes VAT & P&P costs:

 

1oz Bars & Rounds = £15.71

1oz Coins = £18.82

Crowns = £32.10 (This factors in that Crowns are 0.84oz)

 

Overall average = £17.31

 

As you can see, the more generic the cheaper your average is; but more expensive average if buy NZ Taku, 2012 Olympic coins, etc.

 

But like others have said; I'd get bored just buying the cheapest silver from Germany.

 

Now that I've got 101.68oz, I'll be looking to buy 50% generic and 50% nice coins.

 

As mentioned by others, a coin like the Burundi Lion might cost £3 more than a Maple today, but when you sell in future could fetch £10 more than a Maple as "rarer" or collectable coins fetch more than generics when selling.

[Pipers]

You should include p&p in your costs otherwise you are just kidding yourself.  This is the same when selling all selling cost must be taken into account, you would be surprised how many people who miscalculate how much ebay and paypal costs plus the postage.  

 

If you buy Gold bullion the minimum spread is 4%-5% plus buying and selling costs.  this can be £6.50 each way if you deal with a dealer.  If you go down the Ebay route costs will be a lot higher, other way is to sell to your peers, so as you can see keeping records will help you maximise profits as sometimes it can be better to sell back to the dealer.