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Gold advice


airmac

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Hi

I figure on putting some money regularly into gold along with my silver. But I can't figure which way to exactlygo. So when seeking advice and knowledge go to the experts.

I'm trying to figure out if I should regularly buy smaller gold coins or to save over time and buy a big one each time. I see both having pro and cons so wanted to ask others since I probably haven't thought the whole thing through correctly.

Advice really appreciiated

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12 minutes ago, airmac said:

Hi

I figure on putting some money regularly into gold along with my silver. But I can't figure which way to exactlygo. So when seeking advice and knowledge go to the experts.

I'm trying to figure out if I should regularly buy smaller gold coins or to save over time and buy a big one each time. I see both having pro and cons so wanted to ask others since I probably haven't thought the whole thing through correctly.

Advice really appreciiated

Im no expert and only just got into gold recently, i have 2 sovereigns now, I decided on sovereigns as they come with a very low premium compared to other pieces of gold. Collect 1 a month, you will have just under 3oz of gold in 12 months, thats my plan

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This question has been asked many times. You might do a bit of searching to see the variety of responses.

The most frequent answer is to buy basic sovereigns. You have asked about the basic sovereigns on the selling side of this forum. These are a good price. i would fill your boots now whilst they last. Sovereigns do not attract Capital Gains Tax, they are very liquid and sell well. 

Whilst you are collecting read and acquire knowledge. 

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

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18 minutes ago, sixgun said:

This question has been asked many times. You might do a bit of searching to see the variety of responses.

The most frequent answer is to buy basic sovereigns. You have asked about the basic sovereigns on the selling side of this forum. These are a good price. i would fill your boots now whilst they last. Sovereigns do not attract Capital Gains Tax, they are very liquid and sell well. 

Whilst you are collecting read and acquire knowledge. 

Thanks. But I wasn't thinking of a specific coin. Only if it better to save and buy a bigger weight coin or go with a regular buy of smaller weights. Kind of like it's not really a good idea to buy fractional silver bullion instead to go with onzes.

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35 minutes ago, airmac said:

Thanks. But I wasn't thinking of a specific coin. Only if it better to save and buy a bigger weight coin or go with a regular buy of smaller weights. Kind of like it's not really a good idea to buy fractional silver bullion instead to go with onzes.

The answer is when you are starting out is to buy basic sovereigns. That is the answer to all the questions.

The equivalent buying price of gold per ounce goes up as the coin gets smaller. So as people tend to like to get the most gold for their money they might decide on bigger coins like the 1oz. The sovereign allows you to buy gold at a lower premium than the bigger coins and get the advantages of a small coin of less than 1/4oz gold. Sovereigns can be bought for not a lot above spot prices making them a bargain and a great coin to collect. They are a slice of history with many variations.
 
You amass gold at a good price in smaller coins. A double whammy.

If you needed some cash but not a lot of cash you might find a 1oz was more than you wanted to sell. The sovereign and half sovereign being small coins mean you do not have to sell more gold than you actually wanted to.

If you buy 1oz coins they are over a grand. So for many they have to save up to buy a coin. This means it takes longer to save up for a coin and at the same time  it is a bigger amount for potential buyers to rustle up when you decide to sell. You will have more coins in this varied subject.

When you have cut your teeth on the basic coins you can go for proofs and the special versions like shield sovereigns.

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

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Thanks @sixgun, i appreciate you taking the time for the answer. Would that mean it best to never going for an onze when just collecting gold for bullion and stay on the sovereignes? I dont think at this i will be collecting gold coins but just going for bullion style.

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i am giving the answer for the beginner. You can got a decent number of gold coins for a good price even on a lower budget. Sovereigns are the preferred choice for gold bullion.

Sovereigns are very liquid. You will be able to sell the coins fairly quickly, free up the cash value and reinvest it into something else. Sovereigns allow you to buy and sell gold easily with little slippage. A coin is worth its gold content and will always be worth its gold content. Collector premium is another matter, you might make more money with collector coins but if you need to sell quickly you could lose this part of your investment. If you start with sovereigns and ultimately change your mind you can easily get your money back from sovereigns.

i think it is a good idea to have a decent amount of basic bullion gold in case a rainy day comes and you need to sell in a hurry. The sovereign is your friend in these times. 

As you are collecting you might see a Britannia, Maple, Panda or any of the many gold coins at a bargain price and you have the cash spare. Nothing wrong in grabbing a bargain. Some of the 1oz gold coins sell here at spot price. You need to keep your eyes peeled and be opportunistic.  

Over time you will gain more knowledge and you might develop a liking for a particular species of coin with more collector appeal 

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

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I just recently offloaded a philharmonika 1oz for 5% below spot at local bullion dealer. (I could have got more from elsewhere but wanted cash quick) anyway he said, Krugerrand- maple- brittannias and  Sovereign would have been more desirable and got me better %  I take it he ment in any size. As sixgun say's small coin means you only have to off-load as little as needed. But also unless your selling to a collector the make is as important too.

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I would add here that it also depends on your budget and buying strategy, e.g. you can have an annual budget and wait to accumulate larger amounts on dips in the gold price, or you could split it into monthly sums and buy on a cost average basis.  This is important to consider as the smaller fraction coins (1/10oz bullion) carry a higher premium so you may want to wait to purchase a minimum amount each time. 

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I am thinking about the 1 oz coins but my worry is they are harder to sell and wonder if there less collectable than sovereigns ,  and you would probably have to sell it at a dealer , where sovereigns seems all over the place like  Ebay so  I'm sticking with sovereigns for now.

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6 hours ago, MrGeorge said:

What should you buy sovs at above spot ? I always thought that had a higher premium that the 1 oz coins 

Well for the first time i have seen in the last year, basic sovereigns are selling at spot +3% whilst you can pick up a 1oz Britannia for spot +2%. Looks like they got sold a fair few and have dropped the price 1%. Usually the sovereign is in the cheapest coin per ounce of gold with the bonus it is a smaller coin, so more affordable and so easier to sell.

http://www.hattongardenmetals.com/buy/cid0/all-stock

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

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I have bought gold coins for several years and have bullion and some boxed rarer proof sets.

When you start off buying gold coins you have to believe that many dealers like HGM, for example, really don't care the date, country of origin, proof or bullion, in a box, plastic cap, dirty or scratched.
Gold is gold and the value is essentially based on its weight on the scales.
A coin arrives in the morning post and goes out in the evening post - that's the model for fast turnover on low margins.
Crap condition coins get sent off for melting - again all that matters is weight of fine gold.

There are exceptions of course and some dealers like BullionbyPost will buy at spot and double the price for a boxed proof coin.

My experience is that you look for sovereigns, half sovereigns, fractional Britannias, Krugerands, Maples, Nuggets etc that are priced at or below 3% above spot.
If you can buy 10 x 1/10th Krugerands at the same price as a one ounce coin then go for the smaller ones but don't pay much more if you have the money to buy bigger.

If sovereigns are priced at 5% above spot ( as they sometimes are when demand is high ) look for another coin at 3%.
 

If you have a wad of cash and see popular gold, 1 ounce, coins priced at 2% over spot then buy them.

If you adopt the mentality that all that counts is weight and you stick to popular coins then you know you can within 24 hours be reimbursed and set your budget on selling at 97% or higher of spot and you cannot go wrong. Popular gold coins will flip in 24 hours BUT your biggest worry should be the market price of gold.

The market price is in constant fluctuation and you can see variations in price in excess of the margin figures quoted above. That makes it impossible to guess timing so if you are considering regular purchases then that will yield an average buy price. You might place a large order one day and in a couple of weeks see a nice rise in price so you pat yourself on the back for being a smart investor. Trust me though, when you are not looking the price will drop and you will lick your wounds.

Small purchases mean a relatively high charge for Special Delivery - usually around £7 per package so if a full sovereign costs £240 then you have paid £247 which is 3% more than you think so bear this in mind. If you were to sell next day assuming no change in spot you will after shipping have lost about 10% of your investment.

When you see dealers offering free shipping then don't be fooled as they have already factored into their price the cost of shipping.

Hope the responses from the forum have been helpful so you should be well briefed on getting started.

 

 

 

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