noob questions on coin market and grading

[breaktwister]

My goals are to create a long-term store of wealth but also to pickup some nice collectable pieces which may appreciate in value.  I have no idea if I should be buying bullion, bars or looking for graded pieces.  I like to have a plan so I don't "impulse" buy.

I see a lot of guys on youtube have significant portions of their stacks graded.   Is this something I should be aiming for if collecting for the long-term?  Who are the main buyers for these already graded coins?  The premiums seem crazy and scary to a noob like me!

Any other advice for a new stacker?   

[SilverPirate]

Watch Numistacker's  You tube video's for information on the graded side of the hobby.

As a long term store of wealth I don't think you can go wrong with a stack of gold Sovereigns.

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[Guest]

If the coin is high mintage then grading is not needed mostly if low mintage or rare in good condition then grade. If grade is subjective then grade..

I have never had any problem at all selling a graded coin and preserving a premium. Only exception is if the coin was under graded or grading went wrong


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[breaktwister]

Thanks Numi - I like your youtube vids, it was those that prompted me to ask about grading

[Ravinella]

Patience,Knowledge and must buy at value for money........................3 ESSENTiALS.................Grading aint my thing but can understand it if you want to spend the extra costs and there is no doubt about it it has increased the prices for many a coin.I only buy a coin when  it to me represents good value for money,never because it is graded,but I have bought a good many graded coins.

Hope you see the distinction............. buy the coin because it is a good price not just because it has a high grade.........,that applies to graded and ungraded coins a like

Lot depends how much cash you have too.........if you can tie up 10/15k in a rare numismatic then fine but it can then become a problem to liquidate if you need 5k of the money quick.........may have been better buying 10 or 15 1oz bullies.

You said the most important thing yourself though..........decide on a plan of what you want and then try and stick to that,which aint easy as your tastes,if you are anything like me, constantly change.

Decide what the max premium you are going to pay is and stick to that as well...................Its totally personal,nobody can tell you what is right or wrong at the outset as a noob what to do ,but do  ask questions  and read as much as you can about what you decide to do.

For me I spread my collecting,buying,call it what you will................I have bullion sovs and bullion britannias as I hate CGT........I also buy numismatic sovs as well but get your knowlegde up on this area and fully understand grading before you get going.

A good book,The Standard Guide to Rating British Coins, published bu Rotographic as there a load of sharks out there who will try and sell you something as UNC which is as smooth as a babies backside...................get a copy of Spinks Coins of England,comes out Dec they tell me this year and if you are into Sovs you need a Copy of Marsh The Gold Sovereign,Jubilee edition...........look around some american publishers and you can pick one up for 55 bucks inc p&p...........if you are lucky enough to find one over here,as no longer in print,I've seen people ask £60 to £400 for one.....yea £400 and he aint sold it yet

Last timeI looked couple of months ago Chards were selling em for £70................

Hope that is a little taster and good luck........unless you are trying to buy the same coin as I am on e bay............

 

[breaktwister]

Good advises guys, thanks.  

I have a lot of learning to do but it is fun so far.  I am on the forum asking questions to try and reduce the possibility of me getting burnt.  So for now I have dipped my toe in the water with some 1oz silver bullion coins.  However, I am not sure I am liking the premiums for even basic, common gov minted bullion, too far over spot with no numismatic value.

I would like to try some bars from recognisable producers but again, really high premiums even if ordering a lot from Germany.   I need to add more gold to my stack and sovereigns are the right price range for me at present so will I look at that more closely before pulling the trigger on some pieces.

[Guest]

I smile because so many have started where you are at and found the obvious is not that obvious. If you are in the USA earning $ some low premium 1oz rounds would be sensible but still not necessarily desirable. In the uk buying bullion rounds right now will show a 20% loss or more going forward a year or two almost entirely due to likely exchange rate consequences.

I believe counter intuitively that premium is actually desirable in many circumstances


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[breaktwister]

High premium is scary as I don't yet understand the resale market.  Ebay seems to be the main channel and then you have to factor in fees and shipping.