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Newbie sovereign questions


Kamikaze

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Hi guys,

 

I have decide to start collecting some gold (probably a bad time with prices but I want to get started). I bought some gold sovereigns from HGM after reading some reviews about HGM and sovereigns. 

 

When they arrived I was happy with the majority but a few concerned me and I want to know what more experienced guys think about these. I realise older coins can get some knocks and wear and tear. 

 

I have a few with knocks and grime build up, should I try to clean them? Also one with pretty bad discolouration, is this normal or should I try to return it?

 

Any advice would be greatly appreciated  and if I'm being overly fussy let me know.

 

 

 

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It is the oldest established gold bullion coin known, accepted worldwide.

Used, dirty, cleaned, dropped, dinged. It doesn't really matter. It will always be worth its weight in gold, that is what you have bought

A sovereign is a sovereign, it is 7.315 grams of fine gold you have really bought

Upon buy back/selling they will not be bothered about it being Used, dirty, cleaned, dropped, dinged you will get paid for their inherent gold content of 7.315g of gold

If you are just looking to stack gold, no better coin than the sovereign

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Thanks very much Paul, I figured it wouldn't matter but wanted to check!

The history and acceptance of the coin was the main driver for me looking to get Sovereigns and for me it is about creating a retirement option so I plan to hold them for a few decades and just keep adding  a couple at a time.

Also should I look to get some coin holders to store them in? Or a few tubes? Or just chuck them in the work safe as they are?

 

Thanks for your reply, very reassuring :)

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I would have not accepted any of those coins from HGM particularly at spot + 5%. Yes they have a gold value of course but a better condition one also has the same spot value too.

Sent from my iPhone using Tapatalk

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Typical newbie problem Kamikaze and Paul is right an amount of gold is an amount of gold available to buy/sell but with all due respect its not quite that simple.

As Numistacker points out you probably got those from HGM at spot +5%............did you shop about to see if there were any available at spot +3% from anywhere.

In the trade forum on here yesterday for instance someone, cant remember who,ad may still be there, was selling gold at below spot........that was bars though and that then raises questions about CGT for instance.

Also with Numistacker again I wouldnt have bought any of those coins absolute dogs imo,not your fault Kamikaze, you are new to this and after a time I'd be very surprised if you didnt start to appreciate the pure aesthetic beauty of a coin as well as its intrinsic value for instance,particularly when you start showing your collection to your mates,friends etc.

If you are buying for investment purposes no better choice than bullion Sovereigns and Britannia s' imo .If you want to be a collector thats a whole new world apart as is Proofs as another example .

I'd have no hesitation in sending those back for a full refund HGM are use to that fear not.

Finally you suggest todays price may be too high,get ready for a bumpy ride with gold prices over the next few years I suggest.You can only decide if the price is right for you by study and experience.I'm not a buyer today and am hoping for a pullback to about 905/910 when I will be again BUT THAT MAY NEVER HAPPEN  and I will have to change my strategy completely. 

Dont be in too much of a hurry to spend your cash........study,read,forums and learn as much as you can before you you travel too far into this complex business and dont be too hard on yourself  when you make the odd mistake............yea seriously though you have got to get those Sovs back to HGM asap........Good Luck. 

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Thanks for all the input guys. I did message HGM yesterday as I wasn't happy with the quality but I guess being the weekend it will be tomorrow they reply. 

Fortunatly I got them at spot +2% on the slight pull back we had so including delivery I paid £235 a coin which I was happy with at current prices. I do imagine prices will come back but my approach with gold is to buy 1-2 sovereigns a month as a retirement fund. Then cash out on a relative high in 25-35 years time frame. So a long way off still. 

So I will see what HGM come back with but it seems swapping them is relatively normal so I will see what happens. 

I assume just cleaning them up a bit is a no?

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If you want to buy couple of sovs a month over a 25-35 year time period,very sound policy,think about buying a 1oz Britannia every 6 weeks or so occasionally instead, save on buyers premiums.

Dont take any notice of anyone who says "yea but you cant sell 1oz coins as easily" utter rubbish.......and they take up less room too..........Sovs for couple of months with Braitannia in between, nice mix....Remember over that period of time and quantity to buy CGT FREE COINS ONLY unless you have an unhealthy desire to donate funds to the Her Majesty's Treasury.............

Yea cleaning is a no no imo,unless you have it professionally done and even then I'm not convinced

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It's a bit tricky

If you buy bullion blind, you should expect to get the gold weight, no guarantee of quality of coin

To me they look in reasonable enough condition as bullion

That being said, if I were you I wouldn't like having grubby/damaged coins either so..

Maybe you could ring next time and ask for the best condition sovs possible, they may just say "you will get what you get" but worth asking

If you aren't happy with them ask for an exchange or refund 

 

 

Help thread for members new to silver/gold stacking/collecting

The Money Printing Myth the Fed can't and don't money print - Deflation ahead, not inflation 

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Thanks again for everyones advice.

In the end just decided to keep them as gold value was the main concern really and posting back and forth makes that become less worthwhile. 

It was only a few coins in the bundle I got but it comes down to cheap price and potential poor quality or higher price and better quality.

Not sure what I will do going forward for my monthly purchases but plenty time to decide.

Also thanks to the recommendation Ravinelli will definitely look at Britannias too, anything without VAT and CGT suit me :D

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C'mon guys, they're bullion coins. At 2% over spot what do you expect? They would have to be in very,very good condition for those years to be worth more than you paid.

Cleaning such coins isn't an issue if you want them to look pretty.

Profile picture with thanks to Carl Vernon

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33 minutes ago, Numistacker said:

I demand perfection )) mostly I get it

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Well yes, if you're prepared to look for your coins and ask which years, condition etc but usually you pay for this priviledge. Blind bullion at HGM be prepared for anything.

19 minutes ago, Kman said:

It all depends how detached you are I guess, if you're capable of just pure stacking 

Personally I can't just get gold for gold, I have to like the design and condition too 

Me too but I do keep a small amount of bullion, even then, they are the best quality I can get.:)

Profile picture with thanks to Carl Vernon

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Off-topic with sovereigns slightly, but in HGM's defence: I recently bought 2 St Gaudens Double Eagles from them... One is at least MS62, and the other is probably AU58.  Not overly rare years but blind bullion is exactly that - pot luck.

It'll even out over time :)

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I have to disagree with the majority on here. Most of these guys moaning about the condition are collectors, who obsess about condition, and start twitching if a coin isn't perfect.

You appear to be buying coins for investment purposes, and as such any gold bought at 2% over spot is a good deal. Clean the coins if they look grubby, it won't affect their value, but will look nicer.

I at one time, followed the "advice" of the "collectors" on here, and I'm still regretting it today. ...... 

 

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10 minutes ago, HighlandTiger said:

I have to disagree with the majority on here. Most of these guys moaning about the condition are collectors, who obsess about condition, and start twitching if a coin isn't perfect.

You appear to be buying coins for investment purposes, and as such any gold bought at 2% over spot is a good deal. Clean the coins if they look grubby, it won't affect their value, but will look nicer.

I at one time, followed the "advice" of the "collectors" on here, and I'm still regretting it today. ...... 

 

I agree, I've heard the term "lucky dip" used and I think that says it all - fantastic if you get a bargain, suck it up if you don't.

If the price keeps going up then even the collectors' stuff will soon show a profit!

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If you want to pick and choose as to quality you have to accept you'll pay a premium.  Go to a coin dealer, buy from somewhere that uploads pictures or buy from ebay if you want to be picky.

People sending coins back  is probably why HGM put their premiums up.  I have received some bad coins from them and others and have even had exmount shield back and today will be the first time I send anything back.  I'm only sending this one back because this is the second time in two weeks I've been told I would get a young head shield back and received a jubilee.

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4 hours ago, HighlandTiger said:

I at one time, followed the "advice" of the "collectors" on here, and I'm still regretting it today. ...... 

 

My advice is; buy collectables if you're a collector only if you want to own them. Don't expect to make money unless you bought them cheap.

Sometimes they go up in value, but not always.

Semi-nums are a different matter. Buy them at release and you'll nearly always make money at some point in the future.

Profile picture with thanks to Carl Vernon

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