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Foster88

Gold. Where do I start?

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Hi all, I’m new here and relatively new into bullion buying. I’ve bought silver 1oz coins for a few years now and never having had the funds to really branch into gold I’m now ready. 

I have a conservative amount of £1,000/£1,250 to spend and I just don’t know what to invest in. I’ve been looking at the following options: 

1 x 1oz Gold Britannia and 1 x Gold Sovereign (I’ve got my eye on the 1oz Gold Britannia with oriental border.) worth it? 

4-5 x Gold sovereigns (Mixed years) 

or other low gold content coins 1/10 oz gold Britannia’s, half sovereigns etc. 

Can anyone advise? Please appreciate that whilst I’m quite knowledge about silver bullion, I’m a complete novice when it comes to gold. 

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I've recently bought a full sov and a quarter britt for not dissimilar amounts and I like both coins. I think anything smaller than these would be too small to enjoy. I imagine a 1oz gold coin would be lovely to look at / hold in the hand.

 

The 9999 gold does look a lot more 'golden' than the sovereign. The copper in the sov gives it a slightly less attractive gold colour 

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If you really intended to state "bullion buying" then that clearly defines gold as near to spot as possible.
Forget the year of the coin or the size of the coin - you are looking for the best possible price per gram.

Your budget is relatively small so you are now looking for a good deal so that entails shopping around and maybe being a little patient.
Unfortunately many of our popular bullion dealers are taking the opportunity to maximise their own profits especially with regard to the more popular sovereigns and half sovereigns.

Some of the best prices are often found on this forum but you have to be lightning quick.

Check the daily prices on sites like HGM and compare with Atkinsons as often there will be a saving of a few pounds spending £1,000 in one transaction. Your target should be trying to buy fine gold at 2% over spot and remember to rework 22 ct coins to their 24ct content when doing your sums.

Edited by Pete
typo

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42 minutes ago, Foster88 said:

I’ve bought silver 1oz coins for a few years now and never having had the funds to really branch into gold I’m now ready. 

Ooh, that was a mistake ?

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34 minutes ago, Roy said:

Ooh, that was a mistake ?

Well not so much of a mistake, it’s more what I could afford at the time. I wish I’d had the funds for gold 4/5 years ago.

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The best deal for gold, at least around here, is the Mexican 50 peso "centenario". Right now it's selling for $25 over spot. That's 1.2 ounces for only $25 over. Plus it's a big ol', fat, chunky coin!

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If you live in The UK, play it safe and get as close to spot as possible sovereigns. Liquid and you could get maybe 5 and fondle them :) There really isn’t anything quite like it.

Edited by Oldun

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13 hours ago, JunkBond said:

Don't over think it.

Get the closest to spot that you can. 

Fractionals are more liquid.

Half Sovs or 1/10 Brits, spot on.

Although this is sound advice, I was  underwhelmed by the size of half sovs or 1/10 oz coins, they’re just too small to enjoy, so now stick to full sovs and 1/4 oz coins.

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Just now, Shinus73 said:

Although this is sound advice, I was  underwhelmed by the size of half sovs or 1/10 oz coins, they’re just too small to enjoy, so now stick to full sovs and 1/4 oz coins.

Funny you say that as I think that in capsules there is little to choose between halves and full sovs, its all in the thickness. I agree that most 1/10's are just that bit too small.

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22 minutes ago, JunkBond said:

Funny you say that as I think that in capsules there is little to choose between halves and full sovs, its all in the thickness. I agree that most 1/10's are just that bit too small.

Agree that the difference in half vs full sov isn’t as noticeable as the difference in 1/10 vs 1/4.

I keep trying 1/10 and every time I buy one I immediately sell it again....

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I think the Oriental Brit is very nice and I wish I could get one but don't have enough money for a full ounce at the mo, plus they're not very liquid so don't fit my priority for now.

If you're new I'd get new coins from trusted companies and get used to the genuine metal/coins. I started off with bullion Brits and that current year's Sovs and am happy I was cautious to begin with seeing some of the quite convincing (to me) fake older Sovs on here recently - gold is not cheap!

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You don't really say whether you're looking to hold short term or long, or whether you're looking for something flexible or not.

The advantage of sovereigns is that you can sell off your holding in parts as you choose or as you need some funds. You won't have that option with a full ounce - it's all or nothing. Sovereigns are also easy to sell and the margins are low so you're not paying much over spot.

However, there are reasons to consider a full ounce, the main one being the semi-numismatic nature of some products. i.e. they might gain more in value than just the basic spot.

As a simple example, if you'd bought the Queen's Beast Lion a couple of years ago you might have paid something like 4 or 5% over spot instead of something like 3% for sovereigns, but today that coin is selling for 30 to 40% over spot through dealers.

Sticking to RM products the Britannia Oriental Border seems to be a popular one here although I have no idea if this is going to be selling for 30% over spot in a couple of years. However the Queen's Beasts Unicorn and Bull are both still available for a similar markup and seem very likely to be commanding a significant premium in a couple of years.

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4 hours ago, Shinus73 said:

Agree that the difference in half vs full sov isn’t as noticeable as the difference in 1/10 vs 1/4.

I keep trying 1/10 and every time I buy one I immediately sell it again....

Then you must really hate the 13mm 2 peso coins, LOL! Those things are very tiny. 

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13 hours ago, FoolzGold said:

You don't really say whether you're looking to hold short term or long, or whether you're looking for something flexible or not.

The advantage of sovereigns is that you can sell off your holding in parts as you choose or as you need some funds. You won't have that option with a full ounce - it's all or nothing. Sovereigns are also easy to sell and the margins are low so you're not paying much over spot.

However, there are reasons to consider a full ounce, the main one being the semi-numismatic nature of some products. i.e. they might gain more in value than just the basic spot.

As a simple example, if you'd bought the Queen's Beast Lion a couple of years ago you might have paid something like 4 or 5% over spot instead of something like 3% for sovereigns, but today that coin is selling for 30 to 40% over spot through dealers.

Sticking to RM products the Britannia Oriental Border seems to be a popular one here although I have no idea if this is going to be selling for 30% over spot in a couple of years. However the Queen's Beasts Unicorn and Bull are both still available for a similar markup and seem very likely to be commanding a significant premium in a couple of years.

Thank you for your reply. I wonder what it is about the Queen’s Beast collection that demands such high prices. I did notice that when looking for 1oz gold coins for sale. 

I wonder, would you consider 5,000 a low mintage for the 2018 1oz Britannia Oriental border coin? I’m still stuck on this and a sovereign or five sovereigns as a future investment. I’m looking to invest long term really, 10-15 years roughly but also something I can shift if funds required. 

Thanks for your advice.

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5,000 is a pretty low mintage and it sounds like you’re tempted by the oriental border.

From a purely aesthetic point of view I’d say you won’t be disappointed in a 1oz coin like the Britannia.

4 sovereigns will be practical and flexible but to me they look and feel a little ordinary if you compare them side by side to a 1oz coin like the oriental border Britannia. The heft and shine of a coin like that will have you hooked...

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The Britannia Oriental Border does seem to sell for more then the QB Bull of Clarence in 1Oz form. E.g Atkinson’s   

I suspect both will be a good investment.

 

 

 

 

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My opinion is get a few nice quality sovereigns in your hand.  They will make you happy.  If you needed to or wanted to sell later you can peel them off piecemeal instead of selling more gold than you wanted.  As you go forward, add the 1 ozT coins later because you get a better price.   But the Sovs are sooooooo cool and maybe easier to sell. 

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