1 oz or fractionals totalling 1 oz

[sbxsat]

Hi all,

Quick question. Is it better to buy the 1 oz Britannia or would it be better to buy multiple Sovereigns totalling (or close to) 1 oz if my intention is to sell them in several years time?

I didn't think it mattered as the price of gold is based on gold content or am i mistaken?

1 oz Britannia takes up much less space than 4 full Sovereigns.

I really like the Krugerrand but being in the UK, Britannias and Sovereigns seem better due to the CGT exempt.

 

Thanks

 

[HelpingHands]

Sovs.

If you try to sell a 1oz gold quickish then you may have to settle for spot or below as there are fewer people able to buy it. 

[sbxsat]

Thanks for the quick reply. I was intending to sell back to Atkinsons/HGM instead of on eBay as the eBay/PayPal fees seem really high whereas the established online dealers are guaranteed to pay 2-3% under spot. I just need to wait till the price goes up at least 6% from current to earn 3% lol.

With that in mind, I am not worried about finding a buyer.

If we assume there is a buyer at all times, does it still matter if it was a 1 oz or 4 full sovereigns (or fractionals totalling 1 oz)? My math failed me a long time ago

P/s: I also noticed that one of the dealers (I think it was HGM) pay more for bullion Kruggerand than other similar weight bullion.

[HelpingHands]

Sovs unlike most fractional alternatives have low premium.

The other advantage they offer is that you can release funds in smaller amounts.  1oz is a fair amount of money to be tied up in one coin and you can't release a fraction of it.  It's all or nothing without destruction.

 

[Pipers]

Depends really on the following,

1. Depends on your salary the average person in the UK does not qualify for CGT.  
2. How would you like to sell, you state you would like to sell them in several years, how would you like to sell them? quickly in a few goes or in dribs and drabs over many months?  
3. Who would you sell to? Dealers fast and easy or through Ebay/forums with more risks.  

The most popular Gold in the UK, I found this out when I sold my stack a few years ago to dealers is as follows,

1. Krugerrand
2. Sovereign
3. Maple
4. Britannia

All dealers can recognise fakes straight away on these coins as they see them all day long.   

IMO if you have the idea that you will buy at dealer prices and sell at dealer prices thats 4%-6% spread depends on the Gold price plus delivery. If you can get more then good for you.  

[sbxsat]

I really like the Kruggerand and would like to cut down on premiums by getting the 1 oz rather than fractionals. 

They also seem to be the cheapest bullion next to maples.

When the price is right, I would just sell everything rather than one at a time to online gold dealers and reinvest. I don't mind the quick flip to.

[JB3]

On 15/11/2016 at 00:28, sbxsat said:

1 oz Britannia takes up much less space than 4 full Sovereigns.

 

Seriously? I mean, I can understand people worrying about the kilos of silver to ounces of gold, but...

If you can afford ounces of gold, I'd have thought you could afford to buy a box big enough for some sovereigns. I mean, I've heard of people who don't like sovs, but they never complain about how much space they take up!

[Mcgrimes]

If you buy from HGM then there's not always a cost disadvantage when buying fractional; I'd go as small fractions as possible if there's no cost benefit from buying larger fractions

[walesdave]

Done both in the last year or so. Stacked 50 sovs then sold them in one go to Atkinsons; currently up to 12oz in 1oz coins (x10 Krugs and x2 Brits).

• It's easier to keep track of the bigger coins, but if you don't need to use your fingers to count above 10 I don't think this is a major issue
• Putting together a grand or two for a couple of 1oz's might be harder than putting together £500 for a couple of sovs - only you know your finances and can answer that one
• 1oz Krugs (especially from Atkinsons or HGM) always come in at a good price, but sell quickly because of it; but if you ask them to give you a call when they have stock both of them will so yu have a quick window to order before everyone else
• The spot difference between buying and selling 1oz's compared to sovs....I've got no idea, but when you're talking about this sort of cash, who gives a toss about a few quid both HGM and Atkinsons appear to offer a decent price to buy back when compared to their sell price for oz's
• Playing with x4 times the number of sovs compared to Krugs is quite enjoyable, but holding 12oz of gold in 1oz coins is really impressive....even Mrs. Walesdave (completely not interested in PMs) was impressed when I dropped all my Krugs into her hand in one go!
• Unless you can buy (rough estimate) more than 100k of coins in one year, CGT tax is never going to be a problem, it is only charged on PROFIT over £11,000 and only comes into play once you sell your coins.....so buy 100k, sell for 110K (if gold goes up by 10% in a year) and you still don't have any CGT liability

....end of the story....it's entirely up to you! It sounds like you have the same approach as I do; buy from a dealer, sell to a dealer, try to make a bit of a profit. In this case, sovs or oz's (I prefer Krugs to Brits as they 'feel' well impressive!) there's very little difference....

As an aside...when it does come to selling, has anyone used the 'MSE777' code when selling to HGM and got the extra 1% above spot?

[sixgun]

If you buy for gold and from the likes of HGM, then i would buy the sovereigns or something similarly small.

The discount for a 1oz size doesn't exist, so you are getting the smaller coins at a discount.

When you come to selling you can sell as much as you want. You aren't forced to sell a full ounce.