1/4 oz v 1oz premiums for gold nuggets

[Oystonousted]

Hi

I really like the Australian gold kangaroos and would like to buy several of the 1/4 oz. 

I have found the 2017 1oz for sale at £1050. Compare that to a 25% premium for the 2009 1/4 oz version.

I know it works out more expensive to buy smaller coins than larger but is this the norm or are the gold nuggets slightly different? The mintage for these coins is lower than other bullion coins. Does that have something to do with it?

Thanks

[sovereignsteve]

HGM have a 1/2 oz kangaroo at the moment, if any interest to you?

[Cornishfarmer]

just spoke they told me its a 2011

[Pipers]

Hi kangaroos 1oz are bullion only though are very well made, they will only ever get 97-98% of spot (1oz) when you come to sell to a dealer.  The 1/4oz  still is only bullion though has some collectors and would be easier to sell privately in the future, this does not mean it would be a better buy at the premiums you state.  

I think I would have a look at the price of a 1/4oz 2017 compared to the 1oz 2017 then make your decision.  

Remember  It is the price you can sell the Gold coins for not the price that they are advertised at when it comes to selling so check out Ebay sold section then - 13% or check out the forum for sale section compared to spot at time of sale.

Also this game is a marathon not a sprint!  

[Oystonousted]

3 hours ago, sovereignsteve said:

HGM have a 1/2 oz kangaroo at the moment, if any interest to you?

 

3 hours ago, Cornishfarmer said:

just spoke they told me its a 2011

Thanks have spoken to them to confirm it is 2011 will mull it over

[ChrisSilver]

Hi kangaroos 1oz are bullion only though are very well made, they will only ever get 97-98% of spot (1oz) when you come to sell to a dealer.  The 1/4oz  still is only bullion though has some collectors and would be easier to sell privately in the future, this does not mean it would be a better buy at the premiums you state.  
I think I would have a look at the price of a 1/4oz 2017 compared to the 1oz 2017 then make your decision.  
Remember  It is the price you can sell the Gold coins for not the price that they are advertised at when it comes to selling so check out Ebay sold section then - 13% or check out the forum for sale section compared to spot at time of sale.
Also this game is a marathon not a sprint!  

Agreed. However, if selling 1/4oz on the forum opposed to a dealer then you will get some of the premium back. There are a lot of people who are just waiting to get the cheapest gold at lowest premium from a dealer selling used gold, but there are also those that wouldn't mind buying a 1/4oz at a slightly higher premium via the forum (but lower than new stock from a dealer) as they can be assured that the coin is without finger prints

[Pete]

I am always left scratching my head when people list an ugly looking poured 100 oz brick / loaf of silver for a higher price than the same weight in beautiful looking silver one ounce coins. Flipping smaller denominations in theory should always be easier and for more profit.

With gold however I cannot understand the significant premiums in fractal coins bearing in mind the intrinsic high value of the metal.
4 quarter ounce coins would be expected to cost slightly more than a single one ounce coin but only taking into account the added cost of production which in reality will be minimal. I would rather buy 2 half sovereigns if the same price as a full sovereign for example if adding to a gold portfolio.

Therefore if looking to buy smaller denomination gold coins, unless there is numismatic interest, the value selling to a dealer will always be by weight so don't pay over the odds because it is less than the standard ounce. 
 

[Oystonousted]

Thanks Pete I agree 

[Lindeman]

To the general point on the pricing of the 1ounce bullion Kangaroos, they follow the other annual coins that change designs annually (like Pandas) in that the current year coin is always a better buy than the preceding years...presumably just based on availability and mintages.  I know that is somewhat obvious - but it's the reason it's always good to buy them each year as they come along. Of course it all depends if you are collecting or simply stacking ounces.  If you look on Apmex at their Kangaroos you can get them all the way back to the 1987 - but the price does go up as you back in time.  

I am also a fan of these Aussie coins - and I have them in 1/20, 1/10, 1/4 and 1 ounce sizes - just depending on what was cheap at the time! I was also suspicious of the premium on the smaller ones - but reassured in the end as I was able to get the premium back upon selling - here on the Forum as @ChrisSilver said! 

[richo]

Yep, I have a few of these, not many, I'll have to dig them out. They are solid investments and with the changing image they hold a small amount of numismatic value which gives room for a bit more premium over pure bullion. You can't really go wrong with them, although personally I wouldn't go up to 1oz. My view there is if gold did ever move up quite a bit, 1oz coins and above are going to be harder to move than fractionals. Each to their own on that view though!

[Oystonousted]

35 minutes ago, richo said:

Yep, I have a few of these, not many, I'll have to dig them out. They are solid investments and with the changing image they hold a small amount of numismatic value which gives room for a bit more premium over pure bullion. You can't really go wrong with them, although personally I wouldn't go up to 1oz. My view there is if gold did ever move up quite a bit, 1oz coins and above are going to be harder to move than fractionals. Each to their own on that view though!

Good point regarding 1oz coins being harder to shift if gold price goes up