Torn

[Stu]

When looking at making a gold coin purchase I am torn between two possibilities. 

1: Purchasing old gold coins that were used as money at the time of minting and getting them close to spot price.

or

2: Purchasing modern coins when at release are close to spot but have a good chance to increase in value in a few years time. E.g. 1\10 panda, perth mint etc.

My preference is in obtaining old, used coins, however my head tells me to purchase the coins with the best chance of appreciating, I.e. New coins but with less soul. 

Taking the numismatic coins out of the equation, what do you choose to purchase?

 

 

What do you prefer to do? Do you just buy what you like or 

 

[KDave]

When I started buying gold, I bought the cheapest coins I could find, and thus I was an investor. After a few purchases I saw things I liked, and paid a little more over spot for them, and thus became a collector. I then wanted coins that might attract some numismatic value, and paid even more over spot, and thus became a speculator! 

To be honest I mostly do what you do and buy the old monetary coins, trying to keep as close to spot as possible. I find HGM a great place to buy as you can often get all the boxes ticked for 3-4% over spot. For example sovereigns and half sovereigns have a decent collectors market but can be got for close to spot price so are a good buy if you like them. I do have some lunar coins that I bought at a small premium but I bought them expecting no numismatic appreciation, as I don't think there is the market for them unlike their silver counterparts, which have a big collectors market by comparison. Those were definitely a buy because I like them scenario.

[mr-dead]

For me the deciding factor is now -

CGT free - When you can CGT free sovs for 3-4% over spot why risk ending up paying up CGT on your stack wiping out the premiums on all those fancy numismatic and collectible coins.

Fast to offload when the time is right. I don't want to spend ages arguing with a dealer over premiums individual coins are worth or spending months piecing the lot out over forums and eBay.

 

I've done the pretty coin thing, now it's mainly sovs with the odd Britannia thrown in for luck.

Numismatic and collectible coins have their place but I believe they should only make up a very small % of your total stack.

 

 

[watchesandwhisky]

I feel exactly the same way mr-dead does, all my gold is either half sovereigns or full sovereigns bought for 4% over spot, with the odd ebay deal at under spot (but i only buy from bullionbypost on ebay if i get a 20% of voucher)

When it comes to selling gold I want instant cash and I don't want to be paying fees. nor would i risk selling gold on ebay. so sovereigns are perfect.

 

[lee]

same here sovs and britannias would be my choice:)

[SecretStacks]

I started off stacking Britannias only but it does get a bit boring after a while. The RM Lunar coins are CGT free as well and don't have a high premium so that's another option. I have also got a few other low premium modern coins (Krugerrand, Canadian Maple) as they make my stack a bit more interesting and in small quantities I don't think they'll have an effect on CGT (the allowance is just over £11,000 on the gains only and I wouldn't sell that much in one go). I want to be able to sell easily and preferably not on ebay (but I plan to hold for 10+ years and who knows what selling options will be available then?)

[BaldyBob]

Option 1 or 2 are both good  .... as long as you avoid paying more than spot + 3 to 4%. 

The question is collector or stacker?

The occasional new issue, or something with a high premium as a treat, is fine for me. Generally though, I am happy to see what HGM or the Akko's used section throws up. Gold stacking lucky dip!!

Secretstacks is correct that CGT is unlikely to affect the small stacker if you manage your affairs wisely

 

[mr-dead]

 

Secretstacks is correct that CGT is unlikely to affect the small stacker if you manage your affairs wisely

 

All relative I suppose.

CGT limit is £11k profit (you can also use the other half's 11k allowance), depends on how much gold you buy and how high do you think gold prices are going to end up.

 

[BaldyBob]

.

CGT limit is £11k profit

 

Agree the limit is per annum, and tax only applicable on the profit part, not value of the sale.

If you are selling enough gold in a year to generate £11k profit, please adopt me now

[HawkHybrid]

I also believe that sovereigns should make up the

bulk of a long term stack. the flexibility of cgt free

in a tradeable size that you can get for close to spot.

it's because the future is uncertain that people trust

sovereigns most.

 

HH 

[sovereignsteve]

I also believe that sovereigns should make up the

bulk of a long term stack. the flexibility of cgt free

in a tradeable size that you can get for close to spot.

it's because the future is uncertain that people trust

sovereigns most.

 

HH 

People have been trusting sovereigns for 200 years!